Bank Mandiri Reveals The Strictness Of Liquidity Becomes A Challenge Of Growth In 2024

Illustration (Photo: Doc. ANTARA)

JAKARTA - PT Bank Mandiri (Persero) Tbk. assessing the strict liquidity and decrease in the purchasing power of the middle class is a challenge in encouraging the growth of banking performance this year.

Bank Mandiri's Head of Macroeconomic & Financial Market Research Dian Ayu Yustina said the challenge that banks will face is tight liquidity because there is a gap between credit growth conditions and growth of third party funds (DPK).

As for March 2024, credit growth grew by 12.4 percent on an annual basis or year on year (yoy), while the DPK grew 7.4 percent.

"Credit growth is quite positive, acceleration grew 12.4 percent. This is quite solid credit growth. But in terms of deposit growth, there was also recovery at the end of last year, but in March it was 7.4 percent," said Dian in Mandiri Macroeconomic Outlook Tuesday, May 14, 2024.

According to Dian, when compared to credit and deposit growth, there is a gap, because if credit growth accelerates, while the DPK slows down, this becomes a challenge for liquidity in banking performance growth.

Dian conveyed the next challenge, namely, the expectation of cutting the benchmark interest rate which tends to recede to the end of the year or a higher for longer. So that the trend of high benchmark interest rates will last longer in 2024.

In addition, Dian conveyed the next challenge, namely the wait and see factor in the business world which is waiting for the composition of the cabinet until October 2024 and the purchasing power of the middle class which has decreased and can reduce demand for consumption credit and asset quality.