S&P: banking Indonesian will still Face difficult times in 2016

S&P: banking Indonesian will still Face difficult times in 2016

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Singapore, Post Compass - The latest Research-Standard Poors & (S&P) S&P Global Fund Ratings stated banking Indonesia will still face hard times along the 2016. It caused slowing growth and high credit pressure.

"We mengestimasi the non performing loan (NPL) Indonesian banking will rise 3 percent to 4 percent of the total loan system in 2016, from 2.9 per cent in February 2016.0" S&P wrote in his report.

S&P survey results generally stated banking in ASEAN still have resiliensi to deal with the macro economic jolts in 2016. S&P provides a stable outlook for banking in the region.

"ASEAN Banking profits and capitalization could mitigate the erosion in the quality of assets of all 2016.0" said Ivan Tan, S&P Global Ratings credit analyst. "Many banks are systemically benefit from Government support."

According to S&P, the NPL ASEAN Banking will also continue to rise in 2016. However, its increase was not sharp. Estimated loan growth will slow down in the economic slowdown along with the ASEAN region.

"The growth in loans in Malaysia about 6 percent to 8 percent from 10 percent throughout the last five years. It is because the fed's Rate normalization as well as the uncertainty of the economy of China towards balance, "continued Tan.