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Bank Financing in Securities (2016-2017)
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The sluggish domestic economy throughout 2017 caused banks to be very cautious in disbursing credit, and the public also refrained from accessing funding. This led to an increase in banks' funds placed in securities.
Based on data from the Indonesian Financial Services Authority (OJK)'s Indonesian Banking Statistics, the placement of bank funds in securities last year grew by 20.31% to Rp 1,035.34 trillion from the previous year. Meanwhile, the disbursement of bank credit (third party) only grew by 8.24% to Rp 4,737.97 trillion from the previous year. The increase in bank funds in securities (bonds) made the bank's intermediary function less optimal.
The placement of bank funds in bonds last year grew by 13.49% to Rp 637.77 trillion from the previous year. Similarly, placements in State Treasury Securities increased by 70% to Rp 53.3 trillion, and other placements surged by 89.6% to Rp 324.36 trillion from the previous year. Meanwhile, placements in Bank Indonesia Certificates decreased by 79.29% to only Rp 19.9 trillion from Rp 96.1 trillion the previous year.
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but please note that automated translations may contain errors or slight inconsistencies."