Islamic Banking Assets Rose 17.54% YoY in 1H 2021 in North Sumatra

Islamic banking in North Sumatra is growing well (double digits), according to Yusup Ansori, Head at OJK Regional 5 North Sumatra. In the first half of 2021 (1H 2021), Islamic banking assets, deposits and financing in North Sumatra witnessed growth of 17.54%, 17.92%, and 16.02% year-on-year (YoY), respectively.

Why it Matters?

Ansori noted that this growth was supported by various Islamic bank products based on certain contracts and that they have significant potential for growth. Shariah financing increased its market share significantly on the back of a slow-down in conventional credit since COVID-19 and also due to the high growth of Islamic financing.

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