Tight Liquidity Sees Banks Vying for Depositors With Higher
Bareksa • 07 Jul 2014
Warga antre untuk melakukan penukaran uang di gerai bersama di Kantor Perwakilan Bank Indonesia Riau, Pekanbaru. (ANTARA FOTO/FB Anggoro)
Bad loans among Indonesian banks rose to 2.05 percent of total loans in April.
Bareksa.com - Indonesia’s banks may well continue their deposit interest rate war until the end of 2015, desperate to attract funds amid tight liquidity.
“Some banks still prioritize lending growth. That means they have to attract funding and increase their deposit interest rate,” Halim Alamsyah, deputy governor of Bank Indonesia told reporters on Friday. “Thus, some banks’ margin may be reduced,” said the central bank deputy.
Quoted from Jakarta Globe, banks’ third-party funds, which consist of savings, time deposits and demand deposits, grew at a 12 percent pace to Rp 3,695 trillion ($309 billion) in April from the same month last year, OJK data showed.