Analysis of word class

 

“Vocabulary”

 
   

 

 

 

 

 

 

Written by:

Bahron firmansyah(11.88203.1003)

 

 

MADURA UNIVERSITY

A. Article

 

New Policy Triggers Fiercer Competition in Lending Market

The Jakarta Post, Jakarta | Headlines | Fri, November 30 2012, 10:49 AM

The issuance of new lending regulations by the central bank last week will result in fiercer competition to extend loans to local small and medium enterprises (SMEs), bankers have agreed.

“There will be more banks channeling credit to SMEs next year. From an economic perspective, more supply means more competition,” Djarot Kusumayakti, BRI director’s for micro, small and medium enterprises loan portfolios, said in Jakarta on Thursday. 

Bank Indonesia (BI) unveiled a package of regulations last week, including a rule that obliges banks to channel at least 20 percent of their credit portfolio to the SME sector starting next year.

Analysts have said that the policy would trigger more competition in SME lending, which is currently controlled by a few lenders with a wide reach. 

In a report released in September, the Organization for Economic Cooperation and Development (OECD) said that Indonesia needed to “inject stronger competition” into its SME segment, which was currently “highly concentrated, with the large banks such as Bank Rakyat Indonesia, holding dominant market positions”.

Bank Panin vice president director Roosniati Salihin acknowledged that the policy would generate fiercer competition, although she remained optimistic that there was still a huge and untapped market in the SME credit segment.

“For banks, the SME credit segment has great potential business. With the nation enjoying a surge in its middle class, there will be more ‘bankable’ citizens in the market,” Roosniati said on Thursday. SME loans currently comprise 40 percent of Bank Panin’s lending portfolio. 

In addition, BI would also soon apply its prime lending rate policy (SBDK) to the SME credit segment, obliging banks to publish their interest rates starting in January. 

At the moment, the prime lending rate publishing requirement only applies to the retail, corporate and consumer credit segments. 

“The purpose [of the prime lending rate] is to push down the interest rate sector in the SME sector,” BI director for economic research and monetary policy Perry Warjiyo told The Jakarta Post on Thursday. 

Djarot echoed Perry’s comments, saying that the prime lending rate, coupled with the 20-percent minimum requirement for lending for SMEs, would “definitely” put downward pressure on interest rates for the segment.

“The banks that will be affected the most by this policy are those with higher interest rates,” he said.

BRI is the biggest player in the SME market, which accounted for 52.2 percent of the lender’s total outstanding loans of Rp 318 trillion (US$33 billion) as of September. 

Banks usually charge higher interest rates for loans in the SME sector due to the high risk of default as well as due to higher operating costs. 

Consequently, banks that focus on SMEs normally have high net interest margins (NIM), which indicates a bank’s profitability. (sat)

 

B. List of word

No

Noun

Verb

Adjective

Adverb

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

 

 

New

Policy

Fiercer

Competition

Market

Headline

Issuance

Regulation

Central

Bank

Result

Loan

Small

Medium

Enterprises

Have

More

Channel

Perspective

Means

Director

Portfolios

Package

Regulation

Rule

Sector

Analysts

Reach

Organization

Report

Cooperation

Development

Strong

Segment

Positions

Vice president

Business

Nation

Surge

Class

Citizens

Addition

Prime

Interest

Requirement

Retail

Consumer

Purpose

Research

Comment

Pressure

Trillion

Total

Charge

Costs

Sector

Risk

Default

Profit

 

 

 

 

Trigger

Lend

Will

Extend

Credit

Agree

Supply

Said

Unveil

Include

Oblige

Start

Control

Release

Inject

Need

Concentrate

Hold

Direct

Acknowledge

Generate

Remain

Enjoy

Apply

Rate

Publish

Push

Told

Echo

Say

Couple

Put

Affect

Account

Play

Operate

Focus

Have

Indicate

 

Local

Economic

Least

Few

Wide

Large

Such

Which

Dominant

Optimistic

Huge

Untapped

Potential

Middle

Corporate

Down

Monetary

Downward

Minimum

Most

Higher

Biggest

Outstanding

Due

Margins

Net

On

Well

 

Friday

November

By

Last week

Next year

Thursday

Last week

Currently

September

Highly

Still

Great

Middle

January

Also

Soon

Moment

Only

Definitely

As

Higher

Usually

Consequently

Normally

Jakarta

 

Tinggalkan Balasan

Isikan data di bawah atau klik salah satu ikon untuk log in:

Logo WordPress.com

You are commenting using your WordPress.com account. Logout / Ubah )

Gambar Twitter

You are commenting using your Twitter account. Logout / Ubah )

Foto Facebook

You are commenting using your Facebook account. Logout / Ubah )

Foto Google+

You are commenting using your Google+ account. Logout / Ubah )

Connecting to %s