A Comfortable Debt Trap for Banks

So even as the economy falls into ruin because of the pandemic, banks are still raking in profits. Meanwhile, the government is straining under its weight.

Yopie Hidayat

September 6, 2021

THE flow of banks loan can be an early hint of how the economy will move. If it flows rapidly into corporations, that is a good sign. We might see a faster economic recovery. Unfortunately, throughout July, banking credit slowed down again. This is the inevitable result of restricting public activity to prevent the spread of Covid-19.

Throughout July, credit flows only grew 0.5 percent year-on-year. This growth is slower compared to th

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