ID :
59660
Fri, 05/08/2009 - 16:42
Auther :
Shortlink :
https://www.oananews.org//node/59660
The shortlink copeid
BANKS LIKELY TO CUT LENDING RATES AFTER PRESIDENTIAL POLLS
Jakarta, May 8 (ANTARA) - Banks are likely to begin cutting their lending rates after the July 8 presidential elections, Minister for State Enterprises Sofyan Djalil said.
"BI has lowered its benchmark rate where risk condition has been improved while interests in the world have also been going down so that the lowering of banks' lending rate could be realized," the minister said at his office here on Friday.
He said that there was now enough spread between the central bank's benchmark and banks' interest rates, yet banks had not responded to the BI rate cut.
Djalil said banks still saw that risks might still be high but the recent smooth legislative elections had positively been responded to by stocks market.
"The stocks market has been very good. It means that investors have judged what the market is going to be with regard to the upcoming presidential elections," the minister said.
Bank Indonesia (BI/the central bank) has cut its key rate to 7.25 percent in the last six months but banks have not yet significantly lowered the interest rates of their credits.
In spite of this fact, the ministry of state enterprises which owns the holding rights of state-owned banks' shares, could not intervene to lower banks' interest rates, the minister said.
He said on Wednesday that state-owned banks cannot dictate their will to the market with regard to interest rates.
Djalil said he would let banks interest rates develop based on the market mechanism. State banks could not dictate their will on interest rates to the market.
"I could not provide directives towards lowering banking rates because banks should abide by the central bank's rules. The rules are tight," he said.
What the ministry of state enterprises can do is something that is related to the government policies such as credit subsidy and small-holders' credits with cheaper interest rates, the minister said.
According to the minister, banks have big volumes of liquidity but they saved it at Bank Indonesia certificates (SBI).***
"BI has lowered its benchmark rate where risk condition has been improved while interests in the world have also been going down so that the lowering of banks' lending rate could be realized," the minister said at his office here on Friday.
He said that there was now enough spread between the central bank's benchmark and banks' interest rates, yet banks had not responded to the BI rate cut.
Djalil said banks still saw that risks might still be high but the recent smooth legislative elections had positively been responded to by stocks market.
"The stocks market has been very good. It means that investors have judged what the market is going to be with regard to the upcoming presidential elections," the minister said.
Bank Indonesia (BI/the central bank) has cut its key rate to 7.25 percent in the last six months but banks have not yet significantly lowered the interest rates of their credits.
In spite of this fact, the ministry of state enterprises which owns the holding rights of state-owned banks' shares, could not intervene to lower banks' interest rates, the minister said.
He said on Wednesday that state-owned banks cannot dictate their will to the market with regard to interest rates.
Djalil said he would let banks interest rates develop based on the market mechanism. State banks could not dictate their will on interest rates to the market.
"I could not provide directives towards lowering banking rates because banks should abide by the central bank's rules. The rules are tight," he said.
What the ministry of state enterprises can do is something that is related to the government policies such as credit subsidy and small-holders' credits with cheaper interest rates, the minister said.
According to the minister, banks have big volumes of liquidity but they saved it at Bank Indonesia certificates (SBI).***
