NPL ratio to stay healthy despite economic slowdown

The Jakarta Post - Indonesia’s economic slowdown is unlikely to trigger a significant increase in bad loans in the country’s banking industry, as banks will become more selective in choosing borrowers, a local rating agency says.

ICRA Indonesia, a rating agency controlled by Indian credit rating agency ICRA Ltd., estimates Indonesia’s non-performing loans (NPL) ratio would remain below 2 percent and only slightly increase from 1.8 percent recorded last year.

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