Bank of Indonesia published its Banking Survey for the fourth quarter of 2024, indicating faster growth in new loan disbursements, with the Weighted Net Balance (WNB) increasing to 97.9% from 80.6% in the previous period. Stronger loan disbursement growth was driven by investment loans and working capital loans, and respondents expect disbursements to remain solid in the first quarter of 2025 with a forecast WNB of 82.3%. Lending standards are expected to remain as tight in the first quarter of 2025 as in the previous period, reflected in a positive Lending Standards Index of 0.2, with conditions influenced by credit lines, lending rates and premium charges. The survey also reports that respondents remain optimistic on credit growth through end-2025, with outstanding loans projected to maintain solid momentum, supported by the monetary and economic outlook and perceptions of relatively mitigated credit risk when disbursing loans.
Bank of Indonesia 2025-01-20
Bank of Indonesia Banking Survey shows faster new loan disbursements with Weighted Net Balance rising to 97.9%
Bank of Indonesia's Q4 2024 Banking Survey reports accelerated growth in new loan disbursements, with the Weighted Net Balance rising to 97.9% from 80.6%. Investment and working capital loans drove this growth, with expectations for continued strength in Q1 2025. Lending standards are anticipated to remain tight, with optimism for credit growth through end-2025 supported by a favorable economic outlook and perceived low credit risk.