Most Profitable Banks Gain from Indonesia Slowdown

Banks are benefiting from a slowing economy with high interest rates, reaching levels not seen since 2009. Major banks are cutting deposit rates as cash demand declines. Credit expansion has exceeded targets, prompting regulatory concerns. Unhealthy competition in deposit rates is noted, with some banks offering rates above the Deposit Insurance institution's limit. Banks face challenges in passing higher costs to loan rates.

What is the average return on equity for banks with a market value exceeding 5 billion U.S. dollars?

• 18.3%

• 12.5%

• 24.4%

• 30.2%

Which major banks are mentioned as reducing their deposit rates?

• Deutsche Bank and BNP Paribas

• Barakat Indonesia and Bank Central Asia

• HSBC and Barclays

• Bank of America and Wells Fargo

What was the credit expansion rate in July compared to a year earlier?

• 10%

• 20%

• 25%

• 15%

What is the LPS interest rate mentioned in the transcript?

• 6.5%

• 8.0%

• 7.75%

• 9.25%

Why was interest rate competition considered unhealthy?

• It led to lower profits for banks.

• It favored smaller banks over larger ones.

• It caused a decrease in loan applications.

• It resulted in deposit rates above the LPS interest rate.