The central bank (Bank Indonesia/BI) said financial system stability has been maintained as the bank intermediation function improves and the banking industry effectively contains credit risk. Capital
Adequacy Ratio (CAR) of the banking industry was reported at 22.9% and the liquidity ratio at 19.2% in September 2018, up from 18.3% in August 2018.
In addition, the banking sector maintained a low level of non-performing loans (NPL) at 2.7% (gross) or 1.2% (net). In terms of the intermediation function, credit growth was reported to accelerate from 12.1% (yoy) in August 2018 to 12.7% (yoy) in September 2018, while deposit growth ticked downwards slightly from 6.9% to 6.6% (yoy). BI projects credit growth in 2018 at approximately 12.0% (yoy), while deposit growth is predicted to slow down to appoximately 8% (yoy).
