ID :
51089
Wed, 03/18/2009 - 10:13
Auther :
Shortlink :
https://www.oananews.org//node/51089
The shortlink copeid
INTEREST RATES ON BANK CREDITS BEGIN TO DROP: BANKER
Jakarta, March 17 (ANTARA) - A banker said here on Tuesday that interest rates on bank credits had already started to decline.
"It has dropped to 14 to 16 percent from 17 to 20 percent previously. It is already quite low," president director of Bank CIMB Niaga, Arwin Rasyid, said.
He said interest rates could not drop quickly because interest rates on deposits could not wind down easily either. This happened because banks still needed liquidity and therefore many of them offered high interest rates on deposits.
He said the interest rate was expected to drop to boost the real sector. Bank Indonesia in an effort to curb credit interest has cut its key rate aggressively in the past three months.
The central bank cut its key interest by 50 basis points every month so that within three months it had dropped 1.5 percent to 7.75 percent. Banks are expected to follow the move by cutting their interest rate.
Not only the central bank, the Deposit Guarantee Agency (LPS) has also cut the interest rate of savings and deposits in banks it guaranteed by 0.75 percent.
The LPS only guarantees rupiah savings with an interest of no more than 8.25 percent.
The LPS meanwhile would only guarantee savings in smallholders' credit banks (BPR) that have an interest rate of no more than 11.75 percent.
It has also cut the interest of foreign currency savings it guaranteed by 25 basis points to 2.75 percent.
The director of the directorate of research and banking regulations, Halim Alamsyah, meawhile said that based on data from Bank Indonesia from the end of December 2008 until March 9, 2009 the interest rate of credits had dropped only by 0.05 percent.
"The trend is downward. According to data of this week credit interest rate is down five basis points and one-month deposits also is down by five basis points," he said.
He said according to BI data industrially credit interest was recorded at 14.2 percent at the end of December 2008 while in the second week of March at 13.93 percent. The rate of one-month deposit meanwhile was recorded respectively at 8.75 percent and 8.32 percent.
Credit interest rate at state-owned banks is now recorded at 12.72 percent down from 12.95 percent at the end of December 2008. In private banks the rate is now 15.53 percent, dowm from 15.73 at the end of December 2008 and in regional banks now 11.54 percent down from 11.86 percent. The rate in foreign banks is now at 12.23 percent down from 12.97 percent while in mixed banks down from 114.49 to 13.05 percent.
The interest rate of time deposits was down from 7.5 to 7.2 percent at state-onwed banks, from 9.25 to 8.98 percent in private banks, from 8.98 to 8.26 percent in regional banks and from 7.71 to 6.20 percent in foreign banks.
"It has dropped to 14 to 16 percent from 17 to 20 percent previously. It is already quite low," president director of Bank CIMB Niaga, Arwin Rasyid, said.
He said interest rates could not drop quickly because interest rates on deposits could not wind down easily either. This happened because banks still needed liquidity and therefore many of them offered high interest rates on deposits.
He said the interest rate was expected to drop to boost the real sector. Bank Indonesia in an effort to curb credit interest has cut its key rate aggressively in the past three months.
The central bank cut its key interest by 50 basis points every month so that within three months it had dropped 1.5 percent to 7.75 percent. Banks are expected to follow the move by cutting their interest rate.
Not only the central bank, the Deposit Guarantee Agency (LPS) has also cut the interest rate of savings and deposits in banks it guaranteed by 0.75 percent.
The LPS only guarantees rupiah savings with an interest of no more than 8.25 percent.
The LPS meanwhile would only guarantee savings in smallholders' credit banks (BPR) that have an interest rate of no more than 11.75 percent.
It has also cut the interest of foreign currency savings it guaranteed by 25 basis points to 2.75 percent.
The director of the directorate of research and banking regulations, Halim Alamsyah, meawhile said that based on data from Bank Indonesia from the end of December 2008 until March 9, 2009 the interest rate of credits had dropped only by 0.05 percent.
"The trend is downward. According to data of this week credit interest rate is down five basis points and one-month deposits also is down by five basis points," he said.
He said according to BI data industrially credit interest was recorded at 14.2 percent at the end of December 2008 while in the second week of March at 13.93 percent. The rate of one-month deposit meanwhile was recorded respectively at 8.75 percent and 8.32 percent.
Credit interest rate at state-owned banks is now recorded at 12.72 percent down from 12.95 percent at the end of December 2008. In private banks the rate is now 15.53 percent, dowm from 15.73 at the end of December 2008 and in regional banks now 11.54 percent down from 11.86 percent. The rate in foreign banks is now at 12.23 percent down from 12.97 percent while in mixed banks down from 114.49 to 13.05 percent.
The interest rate of time deposits was down from 7.5 to 7.2 percent at state-onwed banks, from 9.25 to 8.98 percent in private banks, from 8.98 to 8.26 percent in regional banks and from 7.71 to 6.20 percent in foreign banks.
