Indonesia's Bank Mutiara to focus on low-cost funds

Bank Mutiara will increase the proportion of its low-cost funds to total third-party funds.

This is to support credit expansion.

Mutiara’s third-party funds reached Rp 13.4 trillion as of the end of 2012, increasing by about 20 percent compared to Rp 11.2 trillion year-on-year. About 15 percent of the total third-party funds, equal to around Rp 2 trillion, were current account and savings account, which gave lower interest rates to customers, according to Mutiara managing director Benny Purnomo.

The remaining 85 percent of the 2012 total third-party funds were time deposits.

“Our target is for a CASA increase of around 50 percent this year compared to last year,” Benny said.

Maintaining low-cost funds such as savings and checking accounts is necessary for banks as they can use the low-interest funding to disburse loans with higher interest rates. A higher proportion of low-cost funds compared to high-cost funds will also reduce the bank’s total cost of funds, the interest burden it has to pay to customers.

For more.

Also Read

BEA’s Ivy Chan on managing banking risks and trade war shifts

Cambodia enables cross-border QR code payments via UnionPay

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit