Bank of Indonesia published its latest Banking Survey showing new loan disbursements continued to expand in the first quarter of 2026, but at a slower pace than in the fourth quarter of 2025, with growth mainly driven by consumption loans. Banks reported more prudent lending standards in the first quarter, while expecting stronger disbursements and an easing in standards in the second quarter. The survey recorded a Weighted Net Balance (WNB) for new loan disbursements of 38.74% in the first quarter of 2026, with respondents forecasting a higher WNB of 96.65% in the second quarter. Lending standards tightened in the first quarter, reflected in a positive Lending Standards Index (LSI) of 0.15, particularly for loan maturities and documentation requirements, but are expected to loosen in the second quarter, with an anticipated LSI of -2.88. Respondents also expect outstanding loans to maintain growth through to the end of 2026 compared with the previous year, citing a robust economic and monetary outlook and contained credit risk.
Bank of Indonesia 2026-04-23
Bank of Indonesia Banking Survey reports slower loan disbursement growth in Q1 2026 with looser standards expected in Q2
Bank of Indonesia’s latest Banking Survey reports continued but slower growth in new loan disbursements in the first quarter of 2026, driven mainly by consumption loans and tighter lending standards. The Weighted Net Balance for new loan disbursements was 38.74% in the first quarter, with banks expecting a rise to 96.65% and an easing in lending standards in the second quarter. Respondents also anticipate stronger outstanding loan growth through end-2026, supported by a robust economic and monetary outlook and contained credit risk.