The increase in BI interest rate will precipitate banking NIM

KONTAN.CO.ID – JAKARTA . Sinarmas Sekuritas publishes research on the banking sector. In a study published June 28, 2018, some points are underlined.

Evan Lie Hadiwidjaja, director of research at Sinarmas Sekuritas in a study cited by Kontan.co.id, said the rise in interest rates would impact the decline in net interest margin [19659003] "NIM banks tend to fall with rising interest rates this year," wrote Evan in a written statement

. As is known, this year BI raised the interest rate from 100bp to 5.25% 19659003] NIM depressed is in line with the increase in the cost of funds faster than the increase in the yield of credit badets.

But in the future, Evan said the NIM will be normal again in line with the increase in loan interest. As a bank NIM April 2018 figure of 5.07% or down from the same period of 2017 5.35%.

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