OJK Forecasts Credit Growth By 17 To 18 Pct

Jakarta, Jan 30 (Antara) - The Financial Services Authority of Indonesia (OJK) predicted that bank credits in 2014 will grow by 17 to 18 percent, slightly higher than Bank Indonesia`s (BI`s) prediction of 15 to 17 percent. "We still see an optimistic growth in our economy. We have predicted that loans will grow by 17 to 18 percent in 2014," stated the Chairman of the Board of OJK Muliaman D Hadad in Jakarta on Thursday. According to Muliaman, the growth estimation is based on the banks` business plans submitted by each bank to OJK, where the banks are still optimistic about 17 to 18 percent growth in the loan sector. "This year, the growth in banking and capital seems to be good," he added. Meanwhile, Muliaman pointed out that the liquidity crunch will still be a problem and a challenge to the banking industry. However, it will not be an obstacle for the growth of the banking industry. "The growth of bank credits was followed by an average growth of the third-party funding," he stated. Therefore, the liquidity of the banking industry can be maintained this year. "For smaller banks, capital should be properly maintained too, so that the liquidity issues do not put new pressures on the national financial industry.