Bank Indonesia: 25 Banks Favor Securities over Lending
Bank Indonesia noted that 25 banks had macroprudential intermediation ratios below 84%, while simultaneously holding securities holdings above 19%.
Bank Indonesia (BI) has revealed that 25 commercial banks are prioritizing securities holdings over lending, according to reports. These banks maintain an intermediation ratio (RIM) below the 84 percent threshold, while holding more than 19 percent of their total funding in securities. Collectively, the securities owned by these 25 banks account for 48.4 percent of the entire banking industry's holdings.
BI has classified domestic banks into four quadrants based on their ratio profiles, with the 25 high-security, low-credit-growth institutions falling into Quadrant II. BI's Director of Macroprudential Policy Department, Alexander Lubis, stated that some banks are making investment-driven portfolio decisions.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
