The Prospect of Banking Industry in Indonesia : Performance and Consolidation  

Oleh:

Puspopranoto, Sawaldjo

Jenis: Article from Article - untuk jurnal ilmiah
Dalam koleksi: President Scientific Journal of Interdisciplinary Studies vol. 1 no. 1 (Agu. 2006), page 1-7.
Topik: BANKING; indonesia's banking architecture (IBA); non performing loan (NPL); the banking industry; consolidation; financial intermediation; the prospect of banking

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: PP58 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

For a developing country like indonesia, where nonbank financial institutions are far lagging behind measured by total assets the banking institutions are expected to play a driving role in developing national economy in general and industrial sector in particular. A positive progress was still recorded by the domestic banks during the last five years measured in terms of funding, lending, profitability, financial intermediation, and non performing loans. Besides, structural change in banking could be observed with foreign banks enjoying a greater market share in the industry. Today the banking industry in indonesia has been facing heavy double pressures. Internally, the pressures stem from the need to comply the requirements of the indonesia's banking architecture (IB), the dwindling interest spread and deteriorating non performing loan (NPL). Externally, the pressure comes from the unfavorable macro economic conditions that bring about the adverse effects to the business of the banks' debtors as the aftermath the fuel price hike of october 2005. To cope with the difficult situation, the bank must strive to carry out an all out consolidation to enable them functioning soundly in the years ahead, or otherwise will fade away. The prospect of banking business in the country up to early 2007 wpuld be marked by declining interest margin, incerasing share of fee based income, more attractive consumer lending, financial intermediation unlikely to rise significantly, while non performing loans like to go up. The banks aer however expected to grant special treatments in one way or another to the real sector to support its recovery. A more relax condition for banking business is liekly to occur beyond mid 2007, provided that the global environment is conductive.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali