0614 GMT - Indonesia's banking sector may enter a period of tactical tailwinds, which could be a near-term catalyst for major banks, Nomura's Tushar Mohata and Verdhana Sekuritas's Erwin Wijaya say in a research report. A recent downtrend in blended rates on Bank Indonesia's rupiah securities to 6.442% may reduce arbitrage opportunities compared with the repo rate of 6.50%, the analysts say. This could provide scope for further reduction in issuance of such securities and for opportunities for Bank Indonesia's benchmark rate to continue to fall, they say. Major banks with more fixed-rate earnings assets have benefited more from potentially stable if not marginally falling funding costs, they say. Major lenders that could benefit include Bank Rakyat Indonesia and Bank Negara Indonesia, the analysts add. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
February 20, 2025 01:16 ET (06:16 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.