Digital Banks to Keep Selective Approach as Loan Growth Slides and Confidence Dips

Bisnis.com, JAKARTA — Digital banks in Indonesia are maintaining their more selective approach in lending to better manage their non-performing loans (NPLs) as Indonesia’s continued purchasing power slump remains as a key barrier to loan growth.

Bank Indonesia’s (BI) M2 broad money report for May showsconsumer loans at IDR 2,252.4 trillion with an 8.7% year-on-year (YoY) growth, a slight slowdown from April’s 8.9% YoYand continuing the downtrend seen since the beginning of the year.