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 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.