Wednesday 22 June 2011

Ranking of Ten Banks Based on Credit

Tight competition between company banks and national private banks in throwing out credit to the business world and the public had been going on since 2007. shift of ranking was inevitable. PT Banks Mandiri, Bank BRI and Bank BNI which for many years had always been in 1st, 2nd, and 3rd position by end of 2008 were now repositioned. Bank Mandiri which ranked first was replaced by Bank BRI and Bank BNI which ranked third dropped to number four while the third place was occupied by BCA. The 1st, 2nd and 3rd position remained unchanged till end of December 2010. data released by Bank Indonesia had it that the total credit extended by 122 general banks by end of 2010 totaled Rp 1,766,184 billions.
            
Business News source disclosed that for the most part general banks and high strata national private banks were enhancing credit extension for consumptive use like mortgage, motorcar and motor cycle buying, credit card etc rather than for working capital or credit investment. The cheap fund as “bullets” that they shout out were initially collected from Giro products and savings account whose I interest rate were low, as low as 1.0% to 2.5% per annum including extravagant prizes like tens of fancy cars, hundreds of motorcycles etc, meanwhile company banks (stated owned) especially Bank Mandiri, Bank BRI and Bank BRI exercised the same policy but were only notable in 2006. hence total profit made by Bank BCA each year were close to total yields of Bank Mandiri and Bank BRI. However based on return on Assets calculation Bank BCA turned out to “excel” because the total asset was way below that company banks.

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