OJK recently released figures on Bali's banking assets showing a growth of 8.2 per cent from December 2017. Head of the regional Bali and Nusa Tenggara OJK, Hizbullah told local news wires this increase has been influenced by "the growth of third-party funds (TPF) or deposits in banks," which has a lot to do with the rising number of banking assets, lending and inter-bank funds on the island.

Hizbullah told reporters most people prefer safe investment instruments such as savings, deposits and demand deposits, which results in bank deposits and assets climbing and this is why TPF dominate. OJK recorded deposits totalling IDR 99.6 trillion from January to June 2018, which is an increase from IDR 96.1 trillion recorded in December. 

According to Skala News, there are currently 55 commercial banks including two, (BPD Bali and Bank Mandiri Taspen) headquartered in Bali. This translates to a network of 700 offices, 35 per cent of which are in the more densely populated areas of Denpasar and 21 per cent in Badung. In addition to commercial banks, there is also a network of 136 rural banks or BPRs and one  Sharia BPR.

However, this rising asset growth has not been followed by an equivalent increase in credit realization. The first six months of 2018 saw a 4.4 per cent growth compared to a six per cent growth in the same period of 2017.

There are a number of reasons for this, but uncertain global economic conditions have caused businesses to adopt a more cautious "wait and see" approach and banks are being more careful about channelling credit.

Source: Skala News

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