Debt Research 4 Maret 2019

Indonesian Banks' Nonperforming Loans May Fall Further in 2019. Indonesian banks'asset quality should continue to stabilize this year as the pace of new bad-loan formation eases, helped by a gradual economic recovery and steady lending. Indonesian banks' gross nonperforming-loans ratio was 2.37% in December, below the high of 3.22% in 2016 but still above the readings of less than 2% in 2013. (Bloomberg)

The Federal Reserve Bank of New York has quizzed some primary dealers about a potential new tool for managing interest rates as the central bank prepares to halt its balance-sheet unwind. The New York Fed’s markets group has sought feedback on how an instrument that keeps money-market rates from rising too far above the central bank’s target range should be designed, and how it would impact markets. (Bloomberg)

President Donald Trump said Saturday that the U.S. dollar is too strong and took a swipe at Federal Reserve Chairman Jerome Powell as someone who “likes raising interest rates.” The dollar was quoted lower against the euro and the yen in early Asia-Pacific trading hours on Monday after Trump’s comments. The U.S. economy is doing well despite the actions of the central bank, Trump said. (Bloomberg)