Cautious banks threaten IndonesiaÆs recovery

Despite boasting healthy ratios, Indonesia's banks are doing too little to boost the economy.

Indonesia's main banks are in good shape, but are frustrating a supportive government's plans to stimulate the economy by adopting less than generous lending regimes.

Bank Indonesia, the central bank, has cut its benchmark interest rate by three percentage points since the start of the year to a record low of 6.5% in August, yet domestic banks have reduced their lending rates by less than a quarter of a percentage point and cut deposit rates by just over...

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