The non performing financing (NPF) ratio of sharia banks in the country dropped to 2.8 per cent in the last quarter of last year from 4.7 per cent in the previous quarter.
The decline was attributable to increase in sharia financing and credit restructuring, head of the Sharia banking directorate of Bank Indonesia Harisman told the newspaper Bisnis Indonesia.
Data at the central bank showed that the NPF of sharia banks tended to increase until the third quarter of 2005 from only 2.8 per cent in the first quarter.
The financing to deposit ratio also declined to 97.8 per cent in the fourth quarter from 110.4 per cent in the third quarter as a result of a faster increase in deposit than in financing, Harisman noted.
Source:
Bisnis Indonesia
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