NPL ratio to stay healthy despite economic slowdown

Bareksa • 20 Mar 2014

an image
Gubernur Bank Indonesia Agus Martowardojo (ketiga kiri) didampingi Deputi Gubernur BI Hendar (tengah) dan Direktur Utama Bank Mandiri Budi G Sadikin memimpin rapat kerja bersama anggota Komite IV Dewan Perwakilan Daerah di Bank Indonesia (ANTARA FOTO/Puspa Perwitasari)

An economic slowdown would normally cause an increase in non-performing loans

The Jakarta Post - Indonesia’s economic slowdown is unlikely to trigger a significant increase in bad loans in the country’s banking industry, as banks will become more selective in choosing borrowers, a local rating agency says.

ICRA Indonesia, a rating agency controlled by Indian credit rating agency ICRA Ltd., estimates Indonesia’s non-performing loans (NPL) ratio would remain below 2 percent and only slightly increase from 1.8 percent recorded last year.

Read more...