BI: Islamic banking fail to meet market share target

bank muamalat

REPUBLIKA.CO.ID, JAKARTA – Islamic banking failed to meet their market share target of five percent until the end of this year, Bank Indonesia Governor Agus Martowardojo said on Monday.

Agus Martowardojo

Agus Martowardojo

“Declining economic growth has affected the real-estate sector, which will make it difficult for Islamic banking to achieve a market share target of five percent this year,” he said during the opening of a seminar on “2014 Shariah Banks Outlook” on Monday.

Until October this year, the market share of Islamic banking had touched 4.8 percent with accounts totaling 12 million or 9.2 percent of total national accounts, while the number of offices had reached 2,925, he pointed out. Agus further said that the 5 percent target could only be met next year. “The target will only be met by the end of 2014,” he added.

bank-indonesia-bi-di-jakarta-_121112221900-198He said the development of Islamic banking in the country during the past year had actually been very rapid, especially the growth of general Islamic banking and Islamic business units that dominated the Islamic banking assets.

Islamic banking assets rose in October to 229.5 trillion IDR from a year ago, including rural banks assets, which totaled 235.1 trillion IDR.

“The growth is still within the corridor of the 2013 growth projection revision that takes into account the slowdown in economic growth and the year-end growth cycle in which Shariah banking assets tended to increase significantly,” Agus noted.


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