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Article: TERM-DEPOSIT INTEREST RATES START TO DECLINE; DISTRIBUTION OF BANK CREDIT REMAINS SLOW.
- Article from:
- Indonesian Commercial Newsletter
- Article date:
- April 27, 1999
CopyrightCOPYRIGHT 1999 P.T. Data Consult, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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With the continued process of bank recapitalization, the interest rates on term deposit has started to slide down on a gradual basis. For the first three months (January-March) of 1999 alone, such interest rates dropped by an average 3%, with the highest decline having taken place to deposit of shorter terms (one month and three months).
As an illustration, the one-month deposit interest rates with state-owned banks have dropped from a range of 38%-40% as per the end of December 1998 to an average 34% as per mid-April 1999 or by a range of 4%-6%. Similarly, the one-month deposit interest rates with private national banks dipped by 3%-8% to a range of 38%-43% over ...