Tuesday, May 5, 2009

Banks Support BI Benchmark Rate Cut

Indonesian banks have expressed support for lower banks' lending rates following Bank Indonesia's decision of cutting its benchmark rate by 25 basis points to 7.25 percent on Tuesday.

Retail Banking Director of Bank Mega, Kostaman Thayib said in Jakarta on Tuesday that lower bank lending rates would help the people, businessmen and the banks themselves.

"This is a good step as it will reduce non-performing loans (NPL) and benefit the banking sector," he said as quoted by Antara state news agency.

In the meantime, state-owned bank Bank BNI analyst Muhammad Alfatih said a number of banks would follow the BI to cut their interest rates, the rates for both credits and funding if investment and economic growth improved.

"Banks still see there are investment risks so that they have yet to cut their interest rates," he said.

He said that fears of economic growth which was not yet stable could add risks to banks' business. After all, there were a number of conventional banks whose conditions were not yet conducive to lowering interest rates.

Besides, he said, the BI Rate cut by 0.25 basis points would generate stocks market and bonds trade. "This condition would provide strength for the stock market. This would invite more foreign funds into the stock market," he said.


Sumber : Jakarta Post

0 comments:

Template by : Kendhin x-template.blogspot.com