Between 2013 and 2016, national banking non-performing loans (NPLs) showed an upward trend as credit growth and third-party funds (DPK) collection slowed. The unstable domestic economic conditions, coupled with sluggish demand for goods and services, led to slower credit growth. Growth in bank DPK also slowed, impacted by the economic slowdown and the decline in deposit interest rates resulting from Bank Indonesia's benchmark interest rate policy.
Meanwhile, bank non-performing loans increased during the 2013-2016 period. At the end of 2013, bank NPLs stood at 1.7 percent, but by September 2016, they had reached 3.1 percent. The domestic economic slowdown, a consequence of the global economy, falling crude oil and other commodity prices, and the ban on mining exports, caused bank NPLs to exceed 3 percent in 2016.
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