Pekanbaru, Riau, Nov 23 (ANTARA) - Sharia-based banks in Riau province have continued to increase their credits provision which up to the third quarter of 2010 has reached Rp1.41 trillion, a central bank official said.
"The prospect of sharia-based banks in Riau is promising and their credit provision has also continued to increase," Head of the Riau branch office of Bank Indonesia (BI/the central bank), Hari Utomo, said here on Tuesday.
He said that the amounts of sharia-based bank credits increased from Rp1.34 trillion in the second quarter to Rp1.41 trillion in the third quarter.
The BI official predicted the amount of credits provided by sharia-based banks would continue to increase in Riau province.
However, Hari Utomo said, the increase in financing would also fuel non performing finance (NPF) ratio risk.
Based on the Riau branch of BI's records, the sharia-based banks' NPF stood at about 3.82 percent. This percentage slightly increased from that in the previous quarter which stood at 3.67 percent.
But he said that the percentage of sharia-based banks' NPF was still relatively secure. "It is still relatively safe because it is still below the limit set by BI at five percent," he said.
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