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Doc: economictimes.indiatimes.com
Bank Deposits In Q4/2024 Projected To Grow When Deposits Declining
Tuesday, 26 Nov 2024
The Financial Services Authority (OJK) has indicated that the banking sector is optimistic about the growth of third-party funds (DPK), or bank deposits, for the fourth quarter of 2024. This optimism is reflected in the results of the OJK's Banking Business Orientation Survey (SBPO) for the same quarter, which involved 93 bank respondents and showed an improving economic outlook. The Performance Expectation Index (IEK) reached a score of 81 in this survey.
"OJK anticipates that the increase in DPK will be primarily driven by deposits," the authority stated on Monday, November 25, 2024. Furthermore, it is expected that DPK interest rates will likely decrease compared to the third quarter of 2024, following a reduction in the Bank Indonesia benchmark rate, which fell to 6.00% in September.
Additionally, the OJK survey forecasts growth in both credit and financing by the end of this year. It is also predicted that undisbursed loans and restructured loans will decline, in line with the rise in business activities and debtor performance.
"OJK explains that the optimism surrounding banking performance is fueled by expectations of increased DPK and credit distribution, which will positively impact banking profits and capital," the authority noted. Meanwhile, Bank Indonesia reported a year-on-year growth of 5.1% in time deposits as of October 2024, a slowdown from the 5.3% year-on-year growth recorded in the previous month.
According to the Money Supply Analysis report released by Bank Indonesia (BI), the growth rate of corporate customer deposits experienced a slight increase from 14% in September 2024 to 14.1% in October 2024, amounting to savings of IDR 1,553.1 trillion. In contrast, individual customer deposits recorded a negative growth of 3.5% year-on-year in the tenth month of this year, a decline deeper than the 2.7% decrease noted in September 2024. The total time deposits for individual customers currently stand at IDR 1,437.3 trillion.
Meanwhile, deposits from other customer categories continued to show positive growth of 9.7% year-on-year, reaching IDR 146.1 trillion in October 2024. This figure surpasses the 5.6% growth recorded in September 2024. The slowdown in time deposits aligns with the trend in third-party funds, which grew by only 6% year-on-year, totaling IDR 8,460.6 trillion as of October 2024, a decrease from the 6.7% growth observed in September 2024.
"Corporate third-party funds grew by 12.8% year-on-year, following a growth of 13.5% year-on-year in September 2024. Meanwhile, individual third-party funds increased by 0.5% year-on-year, remaining relatively stable compared to the previous month's growth of 0.6% year-on-year," BI stated, as quoted on Sunday, November 24, 2024. (ferry@insightinnews.com)
