PREMIUMBanks taking cautious approach amid fears of rising bad debts

PREMIUMBanks taking cautious approach amid fears of rising bad debts

October 19, 2020 fofabvlic 0

first_imgLOG INDon’t have an account? Register here Banks are taking a more cautious approach in providing new loans amid fears that the worse-than-expected economic conditions will cause an increase in bad debts.State-owned lender Bank Tabungan Negara (BTN), for example, is reducing its loans for high-rise commercial buildings this year as a result of a rising non-performing loan (NPL) ratio in the sector.The bank’s president director, Pahala Mansury, said the cautious step was taken because of the rising trend in NPLs in the commercial building sector, such as apartments. According to him, NPLs in the commercial buildings sector significantly increased to 18 percent of the total loans disbursed in the sector, amounting to Rp 21.66 trillion (US$1.6 billion) caused by sluggish apartment salesAs a result, BTN’s gross NPL ratio skyrocketed from 2.8 percent in 2018 to 4.78 percent last year, nearing the unhealthy… Indonesia banking bad-debt BTN bank-mandiri PermataBank BCA coronavirus Linkedin Facebook Log in with your social account Google Topics : Forgot Password ?last_img

 

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