Sharia Unit of Central Java Bank Reduce Institution Fund

Sharia business unit PT Bank Pembangunan Daerah Jawa Tengah (Central Java Bank) reduces the portion of corporate and institutional funds to manage the cost of funds.

Director of Retail Business and Sharia Business Unit of Jateng Bank Hanawijaya, said that the sharia unit of Bank Jateng deliberately reduces the funds from the institution to provide space for non-conventional funds from the issuance of mudharabah I medium term notes (MTN) amounting to Rp500 billion last year.
For third party funds [funds of third parties] sharia business unit there is a decrease as we issue sukuk MTN sebsar Rp500 billion, so the funds from our institution return, "he told Bisnis on Sunday (8/7/2018).

The sharia unit of Central Java Bank recorded a decline in deposits in the first half of this year. As per I / 2018 semester, total deposits collected by sharia unit of Bank Jateng recorded Rp1.91 trillion, decreasing 4.02% compared to the same period last year.

Meanwhile, this year Bank Jateng Syariah targets assets to reach Rp5, 7 trillion, or grow 37.67% of assets in the previous year amounting to Rp4, 1 trillion.