Diverging Performance Paths for Neighboring Country Banks

The rise in the benchmark interest rate has directly increased funding costs, while competition for attracting third-party funds has intensified.

Bisnis.com, JAKARTA — Global and domestic economic pressures in 2024 also impacted the business of private banks owned by Southeast Asian financial institutions. While some managed to sustain growth, others experienced declining profits.

Amid rising market volatility and shifts in monetary policy, banks in Indonesia are confronted with the dilemma of balancing credit expansion and effective risk management.

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