Monday 31 January 2011

Credit Target of State-Owned Banks To Be Revised

The Minister of State Owned Companies Mustafa Abubakar planned to revise credit target of four State Owned Banks, i.e. BEI, BNI, Mandiri and BTN. These four Government banks have the potential to grow by more than 20%.

Of the four banks, the growth of bank credit of Bank BTN is lower than that of Bank Mandiri and BRI “but the increase I steep” Mustafa remarked without mentioning the precise target.

In line with credit growth, Mustafa was expecting that credit interest could be downpressed. Some Banks were now giving credit below 10% for reliable target market. It was expected that state owned banks could lower interest to a single digit level, around 9%. “But not to low either, lest the banks could not breathe” Mustafa further remarked.

Mustafa was certain, lowered bank interest could not cause downturn of dividend in banks. Lower interest would hopefully encourage banks to make expansions. Banks would also be more competitive in business.

Separately, Vice President Director of Bank Mandiri Riswinandi, stated his viewpoint that the growth of Bank Mandiri’s credit level could reach that target. “We are analyzing the possibility to go above 20%. Mustafa concluded.

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