JAKARTA, Jan. 29 (Xinhua) -- Banking credit in Indonesia accelerated at a faster pace last year as financial stability commenced recovery, paring down risks of hawkish policy of U.S. Federal Reserve.
Indonesian Financial Services Authority (OJK) said on Tuesday that loan growth touched an 11.75 percent last year, significantly faster than that of a 8.24 percent in the presiding year.
"This indicates that financial sector has already weathered a gradual recovery," head of commissioner board of the authority Wimboh Santoso said.
The growth was attributed to the expansion in the sectors of electricity, gas, waters, mining and transport, the official said.
On non-performing loan growth, Santoso said, it edged off to a 2.37 percent last year from a 2.59 percent in the presiding year.
Santoso said most of the loans were used for financing productive business sectors, such as financing for capital works and investment.
Banking credit for financing consumption sector also expanded, albeit it was not significant, he cited.
For this year, the official looked the faster loan growth will persist as the country's central bank has recently signaled to end the long tightening cycle it applied from May to November of last year to pare down capital outflows.
The central bank took the stance after the the U.S. Federal Reserve announced a dovish tone for this year.
The Southeast Asia's biggest economy is looked to accelerated at a faster pace last year, a 5.14 percent from a 5.07 percent in the previous year.
Indonesian central bank's long tightening cycle had not shown downshift risks on the loan growth last year.
