Banking Sector Indonesia: NIM and Credit Quality Improve

september 08 2016

Indonesia’s Financial Services Authority (OJK) recently stated that the slowdown in credit growth in Indonesia is caused by Indonesian companies decision to expand at a slower pace, while Indonesian citizens are more careful to purchase loans due to their weakened purchasing power. In general, banks in Indonesia choose to improve the credit quality, which reflected by a lower non-performing loan (NPL) ratio, rather than seeking to disburse credit enthusiastically.