Bank of Indonesia published its first quarter 2025 Banking Survey, reporting that banks saw continued positive growth in new loan disbursements, albeit moderating from the fourth quarter of 2024 in line with historical trends, alongside an easing in lending standards. New loan disbursement growth was reflected in a Weighted Net Balance (WNB) of 55.07% and was driven by all loan segments. Respondents expect disbursements to accelerate in the second quarter of 2025, with a WNB prediction of 81.99%. Lending standards were looser in the first quarter (Lending Standards Index of -1.32), including changes in collateral requirements, and are expected to remain looser in the second quarter (LSI of -1.39), affecting interest rates and document requirements. The survey also indicates respondents remain optimistic about credit growth through end-2025, citing a favourable monetary and economic outlook and relatively well-mitigated lending risks.
Bank of Indonesia 2025-04-28
Bank of Indonesia banking survey shows Q1 2025 new loan disbursements remained positive with WNB 55.07% as lending standards loosened
Bank of Indonesia's Q1 2025 Banking Survey indicates continued positive growth in new loan disbursements, though at a moderated pace from Q4 2024, with a Weighted Net Balance (WNB) of 55.07%. Lending standards eased, reflected in a Lending Standards Index (LSI) of -1.32, and are expected to remain loose in Q2 2025. Respondents anticipate accelerated disbursements in Q2 with a WNB of 81.99% and are optimistic about credit growth through end-2025.