The central bank (Bank Indonesia/B.I.) said the financial system stability has been maintained amidst a solid intermediation function and contained credit risk. The Capital Adequacy Ratio (CAR) of the banking industry remained high at 23.1% in April 2019, accompanied by a low level of Non-Performing Loans (NPL) at 2.6% (gross) or 1.2% (nett). In terms of the intermediation function, the banking industry reported growth of outstanding loans in the reporting period at 11.1% (yoy), lower than March 2019 at 11.5% (yoy).
In addition, deposit growth reported by the banking industry decelerated to 6.6% in April 2019 from 7.2% in March 2019. Meanwhile, liquidity in the banking industry has been adequately maintained, as reflected by a ratio of liquid assets to deposits of 20.2% in April 2019, despite early indications of a slight decline in May 2019. The performance of public listed corporations remains sound, backed by maintained repayment capacity. B.I. projects growth of loans disbursed by the banking industry in the 10-12% (yoy) range, supported by deposit growth forecasted in the 8-10% (yoy) range.