OJK: Banking industry promises greater optimism in 2018

Jakarta – The Financial Service Authority (OJK) said the countrys banking industry has greater optimism with the countrys economy as reflected by the increase in its credit growth target set for next year.

In the banking business plans (RBB) reported to OJK, bank credit growth target is 12.23 percent as against a growth of only 8-9 percent estimated for this year.

“Banks are more optimistic . They set a credit growth target of 12.23 percent , higher slightly than our outlook,” an OJK executive for banking control Heru Kristiyana told reporters here on Thursday.

OJK itself has said the countrys banking industry predicted the countrys bank credits would grow only by 10-12 percent next year.

OJK said in line with the improved condition of the countrys economy banks performance in intermediacy is expected to improve in 2018. Next year the countrys economy is predicted to grow 5.4 percent as against an estimated growth of 5.1 percent.

Based on OJKs data by November , 2017 , bank credits grew 7.47 percent year-on-year and third party funds held by banks grew 9.83 percent yoy.

Heru said the results of the restructuring and consolidation by banks this year would begin to come only in 2018.

“I am also optimistic with the result of what they have done in cleansing and consolidation this year. We will see the results that would make it easier for banks to face challenges in 2018,” he said.

Source: Antara News