Unemployment in the Banking Sector Rises

23/08/2017 14:53 WIB

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Undrawn Customer Credit Facilities (June 2016 - June 2017)

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Undrawn Customer Credit Facilities (June 2016 - June 2017)

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The sluggish domestic economy has led to an increase in idle bank funds. Amidst the slowdown, businesses are more cautious about taking out bank loans. Meanwhile, banks are also more hesitant to disburse credit to avoid a surge in non-performing loans.

Data from the Financial Services Authority (OJK) shows that undrawn credit facilities to customers reached Rp 1,346.53 trillion in June 2017, a 10.17 percent increase compared to June of the previous year. This figure comprises Rp 331.78 trillion in committed credit facilities and Rp 1,014.75 trillion in uncommitted facilities.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."