Bank Credits Reach Rp. 1,664 Trillion

Jakarta, Until the second week of November the total amount of credits extended by banks reached Rp1,664.2 trillion following an addition of Rp234.08 trillion in credits this year, a Bank Indonesia (BI) spokesman said.

Difi A Johansyah, BU`s chief information officer, said here on Wednesday, since early this year credits were recorded rising by 16.37 percent to Rp234.08 trillion or 21.93 percent or Rp2999.32 trillion compared to the same period last year.

In the week under review, bank credits however were recorded to be down a bit by Rp1.04 trillion due in particular to a decline in credits in foreign currencies by Rp1.19 trillion while credits in rupiah currency rose a bit by Rp0.15 trillion.

The rise of credits in rupiah currency in the week was only found in mixed banks (Rp0.06 trillion) and in regional banks or BPDs (Rp0.75 trillion). Credits in state-owned banks and foreign bank chapters were down respectively by Rp0.36 trillion and Rp0.30 trillion.

The drop in foreign currency credits in the banking industry in the reporting week was driven by a drop in foreign currency credits in state-owned banks (Rp1.92 trillion). Credits in private, foreign bank champters, mixed banks and regional banks rose with the highest recorded at mixed banks totalling Rp0.55 trillion. In foreign denominations the foreign currency credits dropped 151.40 million US dollars.

The third party funds meanwhile declined a bit by Rp0.48 trillion to Rp2,157.61 trillion.

The drop was one of the factors that had caused a decline in the bank lending during the reporting week. The drop in the third party funds was driven by the drop in the third party rupiah funds by Rp4.09 trillion while the third party foreign currency funds rose Rp3.62 trillion.

During the 2010 (year to date) the third party funds grew 9.50 percent or Rp187.16 trillion and 16.93 percent of Rp312.34 trillion year on year.

The drop in the third party rupiah funds was caused by a decline in the third party funds in the private, mixed and regional banks with the highest recorded at regional banks (Rp4.36 trillion).

The state-owned banks and foreign bank chapters recorded a rise respectively by Rp2.16 trillion and Rp1.49 trillion. The giro funds rose Rp3.18 trillion. 

 
Due to the development the banks` lending to deposit ratio dropped a bit from 77.17 percent to 77.14 percent.