Fitch: Indonesia's Large Banks Have Satisfactory Buffers

September 7, 2015 4:05 AM

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Indonesian Banks Report Card here JAKARTA, September 07 (Fitch) Fitch Ratings expects the profitability and capitalisation of the 10 major rated banks in Indonesia to provide sufficient loss-absorption buffers against rising challenges, including high interest rates, slowing economic growth, pressure from foreign-currency volatility and a downturn in the commodity market.

Indonesia's three largest banks by assets - Bank Mandiri, Bank Rakyat Indonesia, and Bank Central Asia - are likely to be more resilient to market volatility because of their strong profitability, which is underpinned by their large low-cost deposit franchise. Meanwhile, the profitability of second-...

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