Banks Restrict Corporate Lending over Looming Default Risk

By Editorial Team 09/10/2019
Kredit
Summary

Banks are facing looming default risk, particularly from the corporate segment, giving more pressure to the industry, which already overshadowed by tight liquidity. According to information obtained by D-Insights, many banks had restricted corporate loan disbursement. The threat could be seen from a higher non-performing loan (NPL) ratio, reaching 2.6 percent in August 2019 from 2.55 percent a month earlier.

Moreover, Moody’s Investor Service stated that Indonesia’s corporate debt profile was weak due to low-Interest Coverage Ratio (ICR). As many as 40 percents of corporate debts have ICR scores lower than 2.

Register now and get free access.

If you want to get free access to our Daily Insights and Weekly Digest, please click "Sign up" button below. If you already have an account, please login.

Sign up
Log in
What do subscribers receive?

As a subscriber, you'll receive daily insights, weekly business digests, and quarterly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Register now and get free access, click here to register. Feel free to contact us with any additional questions you have.