REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) estimated that the stability of financial system in banking sector was still well maintained as it was supported by the resilience of banking system and financial market performance improvement. 

At least four indicators shows the resilience of banking industry in Indonesia.

The first, credit risk is still at safe position. Second and third, market liquidity is still good. "And there is also the support from strong capital resilience," Executive Director of Communication Department in BI, Tirta Segara said in a written statement recently.

Bank credit growth slowed down from 21.4 percent year on year (yoy) in December 2013 to 20.9 percent yoy in January 2014. Segara said that BI would coordinate with Financial Services Authority (OJK) to monitor this condition.

Fourth, stock market in February 2014 also performed better. Indonesia's stronger Composite Index (IHSG) and declining government securities yield particularly driven by optimism among investors on domestic economy, while at the same time inflation and current account deficit were decreasing.

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