Fitch Ratings said Indonesian banking sector is strong over market risk, credit risk, and global liquidity caused by Fed rate hikes. Fitch has conducted a stress test for Indonesia banking sector. Growing non performing loans (NPL) prompted some banks to increase their provision for loans. But NPL for commodity sector begins to slow, though still high at current level. NPL of banking sector, overall, declined to 2.6% in the first quarter this year, from previous 3%.
