REPUBLIKA.CO.ID, JAKARTA - Placement of bank funds in Bank Indonesia's deposit facilities or Fasbi in April 2013 plunged due to tight credit, an analyst said.

Data from BI's statistic banking shows that distribution of funds for commercial banks increases from 3,693.57 trillion IDR in April 2012 to 4,279.17 trillion IDR in April 2013. Credit disbursement increased from 2,334.21 trillion in April 2012 to 2,844.81 trillion in April 2013. However, the placement in Fasbi dropped significantly from 149.5 trillion IDR in April 2012 to 49.26 trillion in April 2013.

Chief Economist of Bank Internasional Indonesia, Juniman said the decline in Fasbi was caused by strong credit. Tight lending makes loan to deposit ratio (LDR) increases significantly, so unemployed liquidity is thinner.

"Small Fasbi rates enforce banking sector to diversify and put their liquidity in corporate bonds with higher yield," Juniman said on Sunday.

Placement in Fasbi is predicted to arise. This June, BI rises Fasbi rate from 4 percent to 4.24 percent. The increase will also boost the placement of funds in Fasbi. The placement of funds in Fasbi reaches 70 trillion IDR in June 2013.

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