Islamic Banks Can Survive Further Rupiah Decline: OJK

Indonesian Islamic banks would survive a rupiah drop to as low as 16,000 against the US dollar, thanks largely to low levels of bad loans, a senior official at Indonesia's Financial Services Authority said. The banking industry's non-performing financing ?? bad loans in sharia banks ?? reached 1.3 percent as of July 2015, still lower than the 5 percent benchmark set by the OJK. In comparison, bad loans among conventional lenders stood at 2.5 percent of total loans at the end of July, according to OJK data. The rupiah has fallen 15.13 percent so far this year, trading at 14,322 against the greenback on Monday, according to the Jakarta Interbank Offered Rate.