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JAKARTA. As of August 2016, some foreign banks recorded minus credit growth. One of the banks, Hongkong Shanghai Banking Corporation (HSBC) experienced decrease in number of outstanding credit as a result of the minus growth.
As of August 2016, HSBC Indonesia recorded minus 22.40% credit allocation growth. This has caused the decrease in the bank’s credit outstanding from Rp 64.40 trillion in August 2015 to Rp 49.97 trillion in August 2016.
Meanwhile, Standard Charter Indonesia experienced a 17.13% decrease in credit allocation from Rp 29.41 trillion in August 2015 to Rp 24.37 trillion in August 2016.
Chie of Financial Officer (CFO) of Standard Chartered Indonesia Lea Kusumawijaya said that the bank is optimistic that credit may have opportunity to grow during the third and fourth quarter of 2016, mainly at commercial and corporate sectors.
Lea added that the slow economic recovery has affected to slow credit allocation in this year. “So far, we are still optimistic to meet the target of credit growth as stated in the bank’s business plan”, said Lea.
President Director of Citibank Indonesia Batara Sianturi said that the credit allocation was slightly affected by the bank’s policy in controlling non-performing loan (NPL) rate. Let alone, the national economy tended to grow in a slow manner. “We are selective in delivering credit and loan”, Batara said.
According to Citibank’s financial report in August 2016, the bank booked a minus 6.13% credit growth from Rp 40.85 trillion to Rp 38.344 trillion. This year, Citibank targets to manage a 7%-9% credit growth.
Data from Indonesia Banking Statistic (SPI) show that as of July 2016 the amount of foreign banks’ allocation has shrunk by 8.9% to Rp 283.62 trillion. As a comparison, the total banking credit grew by 7.57% from Rp 3,868.14 trillion to Rp 4,161.19 trillion during the same period. Meanwhile, the credit allocation of State Owned Enterprises bank grew by 14.83% to Rp 1,613.62 trillion as of July 2016.
(Muhammad Farid/Translator)
