Credit And Deposit Growth Target Would Be Achieved

Jakarta, Aug 28 (Antara) - The Financial Service Authority (OJK) said it is optimistic the growth targets for credits and third party funds held by banks could be achieved. "We are still optimistic that the targets could be achieved although banks are experiencing tight liquidity," chairman of the council of commissioners of the OJK Muliaman D. Hadad said addressing the "Indonesia Banking Expo 2014" here on Thursday. Based on banks` business plans, credits are predicted to expand 15-16 percent and third party funds grow by 13-14 percent in 2014. Muliaman described as relatively stable the performance of the country`s banking industry until August 2014 despite the tight liquidity. He pointed to the transactions in the financial market and interest rate in interbank transactions, which he described as relatively stable. "In addition we see the bank capital, which is still in good condition," he said. He said the adequacy of tire I capital of banks until August this year was at the level of 19.51 percent , up from 18.9 percent in early 2014. The non-performing loan (NPL) of banks also is safe below 1 percent, he said. He said the amount of third party funds held by banks grew 13 percent year-on-year and loan to deposit ratio was still in tolerable level of 90 percent. He said the slowdown in banking business is in line with the process of re-balancing against economic restructuring. "We have to face economic restructuring with adjustment to the financial market," he said.