BCA Bosses: Watch out for tightening bank liquidity

JAKARTA, KOMPAS.com – The managing director of PT Central Bank Central Asia (BCA) has asked the industry to become aware of the growing contraction of bank liquidity. Because the ratio of financing on current financing (ratio of loan on financing / LFR) in the entire banking sector has reached 94%.

"The market has 94% (LFR) Now, if third-party funds know only (growth) of 8%, credit (growth) is 12%, the LFR is even more important, it must be ensured", a Jahja said when met with the Bank of Indonesia's annual meeting at the Jakarta Convention Center (JCC) on Tuesday (27/11/2018).

Jahja revealed, the current position of BCA LFR is at 82%. Until the end of the year, the LFR ratio of BCA is estimated at 85%.

Along with the upward trend in interest rates, Jahja noted that BCA's credit growth could still exceed the target set until the end of 2018, which was the first year of the year. 39, order of 8 to 9%. Until September 2018, BCA had recorded credit growth of up to 17%. Even though, until the end of the year, credit growth will slow down a bit.

"But we are not expecting much until December, maybe 14 percent," said Jahja.

Business loans, said Jahja, are still the main contributor to the company's credit growth. Because consumer credit is a little depressed when credit interests increase

"Consumer credit, if housing loans, the KKB are influential, direct interest increases demand decreases, but if the credit for working capital, investment, people see market prospects", a- he explained.