Jakarta (Antara Bali) - Since last year, state-owned bank BNI has reduced the credit available for purchases in the motor vehicle sector, fearing the creation of a credit bubble, a BNI director said.
"We are cautious in providing credit for motor vehicles for fear of bubbling, because the credit provision in this sector seems to have been slightly overheating," Consumer Retail Director of BNI Darmadi Sutando said here on Wednesday.
He noted that in 2011 BNI's credit, extended through its multi-finance scheme for the vehicle sector, only grew by five percent, despite the fact that demand for credit was very high.
"The value reached Rp6.5 trillion, or an increase of five percent from that in 2010," he said.
Darmadi added that this year BNI would maintain credit at a low rate in the vehicle sector, between five to 10 percent, although demand was expected to remain high.
"The bad credit in this sector is also relatively still safe, yet we will keep it at a five percent level," he added.(IGT/T007)
