Double Digit Growing Banking Credit And Financing Rate, BI: Support Economic Recovery

Bank Indonesia (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) reports that conventional and sharia banking credit/financing recorded double-digit growth in October 2022.

BI Governor Perry Warjiyo said credit growth in October 2022 was recorded at 11.9 years on year (yoy), supported by increases in all types of credit and almost all economic sectors.

"Recovery of intermediation also occurs in Islamic banking, with financing growth of 18.4 percent yoy," he said, quoted on Sunday, November 20.

According to Perry, in terms of supply, the continued improvement in banking intermediation is supported by credit distribution standards that remain loose, along with improving banking approaches in lending, especially in the industrial, trade and agricultural sectors.

"In terms of demand, the increase in intermediation is supported by the continued recovery in corporate and household performance," he said.

It was revealed that corporate performance was reflected in improving payability, sales rate, and capital expenditure, especially in the mining and trade sectors.

He said, household performance is reflected in improving consumption and household investment in line with consumer optimism.

As for the MSME segment, the growth in people's business credit in October 2022 was recorded at 17.5 percent yoy.

"In the future, Bank Indonesia will continue to pay close attention to various risks of domestic and global macroeconomics that can hamper the performance of the financial system, as well as strengthen synergies with KSSK in order to maintain financial system stability," concluded Perry.