Savings crunch may stall loan growth


Liquidity strain: An bank employee counting rupiah in Jakarta. Bank Mandiri targets loan growth of 10 to 12% this year while aiming to lower its LDR to around 90%. — AFP

JAKARTA: Indonesian banks may struggle to maintain fast loan growth this year as their customers’ savings fail to keep pace, impacting financing for businesses and individuals.

Analysts believe local lenders need to tweak their strategies for 2025 by slowing down loan growth to keep liquidity within healthy bounds.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

IATA optimistic on Malaysia's aviation outlook as regional recovery accelerates
ISF Group, Alliance Islamic Bank ink IPO underwriting agreement
Bank Islam targets 50% rise in BIMB biz users payment to voice feature
CPO output down 5.3%, palm oil exports fall 28.13% in Nov -�MPOB
Bursa Malaysia slips at midday amid subdued regional sentiment
EcoWorld achieves record sales and profit in FY25
LAC Med shares up on market debut
Steel unit price index falls 0.1 to 3.2 % in Nov - DoSM
SumiSaujana explores partnership with China polyurethane product manufacturer
Carsome's record retail performance drives up 3Q earnings

Others Also Read