ID :
29471
Mon, 11/10/2008 - 18:45
Auther :
Shortlink :
http://m.oananews.org//node/29471
The shortlink copeid
FIFTEEN BANKS READY TO CUT THEIR LENDING RATES BY 2-3 PCT: CHAMBER
Ternate, Indonesia, Nov 10 (ANTARA) - Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) MS Hidayat said 15 large banks will cut their lending rates by 2-3 percent if the government provides a full guarantee on all bank deposits.
"Fifteen banks have agreed to cut their lending rates by 2-3 percent on condition the government provides a full guarantee on bank deposits and I urge the government to do so," he said on the sidelines of the second congress of North Maluku province on Monday.
He said the government should guarantee all bank deposits in any amount rather than limiting the ceiling of deposit guarantee to Rp2 billion.
"This will neither make the people worried about depositing their funds in the domestic banks nor give rise to capital outflow. As such, the source of funds in the domestic banks will grow," he said.
At the recent height of the global financial crisis, the government raised the ceiling of deposit guarantee to Rp2 billion from the previous Rp100 million to bolster confidence in the financial sector.
The amount of bank deposits that had not been guaranteed by the government ran into Rp600 trillion, he said adding if the funds were put in overseas banks they would disrupt the domestic sources of funds.
"If the government guarantee all the bank deposits they will boost the real sector," he said.
He said banks were tightening their liquidity because of the global financial crisis and the condition was expected to continue until 2009.
"Fifteen banks have agreed to cut their lending rates by 2-3 percent on condition the government provides a full guarantee on bank deposits and I urge the government to do so," he said on the sidelines of the second congress of North Maluku province on Monday.
He said the government should guarantee all bank deposits in any amount rather than limiting the ceiling of deposit guarantee to Rp2 billion.
"This will neither make the people worried about depositing their funds in the domestic banks nor give rise to capital outflow. As such, the source of funds in the domestic banks will grow," he said.
At the recent height of the global financial crisis, the government raised the ceiling of deposit guarantee to Rp2 billion from the previous Rp100 million to bolster confidence in the financial sector.
The amount of bank deposits that had not been guaranteed by the government ran into Rp600 trillion, he said adding if the funds were put in overseas banks they would disrupt the domestic sources of funds.
"If the government guarantee all the bank deposits they will boost the real sector," he said.
He said banks were tightening their liquidity because of the global financial crisis and the condition was expected to continue until 2009.
