Bank of Indonesia published its Banking Survey for the third quarter of 2025, reporting that growth in new loan disbursements remained positive, with a Weighted Net Balance (WNB) of 82.33%. The WNB eased from 85.22% in the second quarter of 2025 but was higher than 80.64% in the third quarter of 2024, and respondents expected disbursements to accelerate in the fourth quarter of 2025 (forecast WNB: 96.40%). The survey also indicated more prudent lending standards in the third quarter of 2025 versus the previous quarter, with a positive Lending Standards Index (LSI) of 5.78 across all loan types, mainly reflecting tighter document and collateral requirements, administration fees, credit lines, and loan maturities. For the fourth quarter of 2025, respondents anticipated looser standards (LSI: -5.95) and remained optimistic about credit growth through end-2025, citing a promising monetary and economic outlook and relatively contained risk in loan disbursement.
Bank of Indonesia 2025-10-20
Bank of Indonesia banking survey shows new loan disbursements still expanding in Q3 2025 while lending standards tighten
Bank of Indonesia's third-quarter 2025 Banking Survey shows positive growth in new loan disbursements, with a Weighted Net Balance (WNB) of 82.33%, down from 85.22% in the previous quarter but up from 80.64% year-on-year. Lending standards tightened in the third quarter, reflected by a Lending Standards Index (LSI) of 5.78, but are expected to loosen in the fourth quarter (LSI: -5.95) amid optimism for credit growth and a favorable outlook.