Economic Recovery Spurs Better Prospects for Indonesia's Islamic Banks: Fitch

As highlighted by Fitch Ratings (Fitch), prospects for Indonesia's Islamic banking sector are predicted to be positive on the back of steady economic recovery and continuing regulatory forbearance, as highlighted by Fitch Ratings (Fitch).

Why it Matters?

Among the main catalysts for growth in the medium-term are favourable government policies and regulations, increased availability of Islamic liquidity-management products, digitalisation increase and the organic growth of the newly formed Bank Syariah Indonesia. Nonetheless, some challenges remain, including the limited product offerings by Islamic banks and their smaller capital base, digital and physical branch networks that are still developing and skilled human capital limitations.

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