"Respondents expected growth of all loan types to pick up, led by working capital loans," said BI Communication Department Head Onny Widjanarko in a statement on Friday.
Meanwhile, the banking industry predicted stronger growth in the fourth quarter of 2020, albeit below the level achieved in the same period one year earlier.
Respondents predicted lending policy in the fourth quarter of 2020 may not be as tight as the previous period, as indicated by a decline in the Lending Standard Index (LSI) to 8.1 percent from 11.0 percent in the previous period.
"The banks expected to ease lending standards on all loan types, particularly MSME loans," the central bank revealed.
The latest survey also signalled slower credit growth in 2020. Respondents predicted credit growth in 2020 at 2.5 percent (yoy), which is lower than credit realisation in 2019 at 6.1 percent.