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Home > Business/Finance > Financial Services > Banking
Indonesia: Banking
After the economic recession in 1997 which hit the banking industry in Indonesia, the economic condition in Indonesia has finally heading on track, as the trend of banking industry in Indonesia has been improving positively since the recession. The national growth rate of depositors’ fund has increased by 14.2% Y-o-Y in 2006. Credit expansion in the overall national level has also increased by 14.1%.
Total deposits held by banks increased by 14.11% Y-o-Y, reflecting steady public confidence in the banking industry and due to increasing deposit interest rates. In 2006, savings deposits recorded the highest growth rate with 18.6%. In the same year, the capital adequacy ratio for the banking system increased slightly from 19.5% to 21%.
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