BI's plan to issue a regulation extending the coverage of Deposit definition, by inserting securities issued by banks in calculation of LDR, will drive credit growth to 17%. Bank Indonesia (BI) is targeting the growth of bank credit in 2015 in the range of 15% -17%. However, based on a survey of BI in the first quarter-2015, survey respondents revise upwards the target of credit growth in 2015 amounted to 17.1%.
BI deputy governor, Perry Warjiyo feel optimistic, credit targeted to grow at the upper limit of the 17% expected to be achieved. According to him, the pressure drop increase in lending rates and the improvement in capital adequacy conditions become increasingly optimistic the main driver of credit growth in 2015.
"Loan growth in 2015 15% -17%, I am sure will be achieved," said Perry, at the Bank of Indonesia, Jakarta, Wednesday, April 29, 2015.
In addition,BI's plan to issue rules related to extending the coverage of the definition of deposits to include securities issued by banks in the calculation of the Loan to Deposit Ratio (LDR) Statutory policy / GWM-LDR, will also be expected to encourage the growth of credit in the level 17%.
"Loan growth will be achieved because we will soon issue rules LDR-GWM, which expands the definition of deposit, bank's ability to leverage," said Perry.
While based on the central bank, until the month of February 2015, total bank loans reached Rp3.699,5 trillion, or grew by 12% year-on-year (yoy). The figure is higher when compared to credit growth in the month of January 2015 amounted to 11.4% (yoy).
However, BI survey indicates, that the growth of new loans in Quarter I-2015 is expected to slow down. Because the demand for financing remains low at the beginning of the year and banking policies are more selective in new lending, the main cause of slowing credit growth.
However, in the second quarter of 2015, survey respondents expect growth of new credit will bounce back. Meanwhile, the average lending rates is expected to increase in the second quarter of 2015, but the increase is quite low.