ID :
59098
Tue, 05/05/2009 - 20:30
Auther :
Shortlink :
https://www.oananews.org//node/59098
The shortlink copeid
BANKS SUPPORT LOWER LENDING RATES
Jakarta, May 5 (ANTARA) - Banks expressed support for lower banks' lending rates following the step taken by Bank Indonesia (BI/the central bank) on Tuesday to lower its rate by 0.25 basis point to 7.25 percent.
Retail Banking Director of Bank Mega, Kostaman Thayib said here on Tuesday that lower bank lending rates would help the people, businessmen and the banks themselves.
"This is a good step as it will reduce non-performing loans (NPL) and benefit the banking sector," he said.
In the meantime, state-owned bank Bank BNI analyst Muhammad Alfatih said a number of banks would follow the BI to cut their interest rates, the rates for both credits and funding if investment and economic growth improved.
"Banks still see there are investment risks so that they have yet to cut their interest rates," he said.
He said that fears of economic growth which was not yet stable could add risks to banks' business. After all, there were a number of conventional banks whose conditions were not yet conducive to lowering interest rates.
Besides, he said, the BI Rate cut by 0.25 basis points would generate stocks market and bonds trade. "This condition would provide strength for the stock market. This would invite more foreign funds into the stock market," he said.***2***
T.SDP-21
Retail Banking Director of Bank Mega, Kostaman Thayib said here on Tuesday that lower bank lending rates would help the people, businessmen and the banks themselves.
"This is a good step as it will reduce non-performing loans (NPL) and benefit the banking sector," he said.
In the meantime, state-owned bank Bank BNI analyst Muhammad Alfatih said a number of banks would follow the BI to cut their interest rates, the rates for both credits and funding if investment and economic growth improved.
"Banks still see there are investment risks so that they have yet to cut their interest rates," he said.
He said that fears of economic growth which was not yet stable could add risks to banks' business. After all, there were a number of conventional banks whose conditions were not yet conducive to lowering interest rates.
Besides, he said, the BI Rate cut by 0.25 basis points would generate stocks market and bonds trade. "This condition would provide strength for the stock market. This would invite more foreign funds into the stock market," he said.***2***
T.SDP-21
