Indonesia’s credit growth outrunning risk management

Credit limit

Earlier this year, Indonesia finally completed the last part of its Basel II regulatory framework. Banks are putting in place a standardised approach to credit risk management as outlined by Bank Indonesia in January 2012.

Most economists and rating agencies rate Indonesia's macro environment and banking sector as stable, with banks well-capitalised and GDP set to increase by upwards of 6% this year. The government has taken huge strides in improving financial discipline since the Asian

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