People Tend to Save Money in Foreign Bank

DENPASAR ~

The weakening of rupiah against U.S. dollar in the third quarter of 2013, pushed money owners in Bali to deposit their fund in foreign banks, which are able to grow until 6.77 percent.

“The growth of third party funding (DPK) was quite high compared to the previous quarter when it dropped 4.86 percent,” said Bank Indonesia Deputy Director Region III Representative Suarpika Bimantoro in Denpasar on Monday.

The customer’s behavior to save their money in foreign bank can be seen from changes in exchange from rupiah into foreign currency has increased sharply by 21.18 percent, much higher than an average of 10 percent in the last three years.

In addition to the weakening of rupiah, Bali economic growth remains strong, with an increasing trend of interest rates, expected to drive growth in deposits to 17.50 percent, higher than the previous quarter, which was 16.67 percent.

Suarpika Bimantoro in Bali regional financial report mentioned that the third party funds collected cumulatively by bank in this area until the end of the third quarter of 2013 reached Rp62.2 trillion, an increase compared to the same period in the previous year, which was Rp57.8 trillion.

The biggest deposits which can be collected by bank saving is Rp30.8 trillion or 49.53 percent of the total deposits followed by deposits of Rp18 trillion or 28.98 percent and current accounts amounted to Rp13.3 trillion or 21.49 percent.

The high concentration of deposits in the kind of savings is driven by the size and individual associated with structure of the Balinese economy that is dominated by the scale of the micro, small and medium business activities and minimal of major industrial activities.

Suarpika Bimantoro added that these conditions lead to deposit in the form of savings becomes the most ideal choice, given the easy way of transaction.

The society saves their money in the form of savings because it is easy to withdraw it at any time,” he said.

Deposit growth is generally influenced by savings growth in the form of deposits reached 13.53 percent, higher than the previous quarter, which was 10.12 percent.

Increasing amount of deposits followed by deceleration savings and current accounts indicates that the deposit increase is caused by an increase in interest rates that occurred in the third quarter of 2013.

Filed under: The Island

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