In 1995, total lending for the four units was about Rp. 714 million (US$313,000). This is equivalent to an average loan volume of Rp. 178 million (US$78,000) per unit (US$8,00) pr uit. However, loan volume is not divided equall among units. The unit with the largest volume

# **Table 19**

# **LKP Annual Loan Volume**

|||<br>**1991**|1992|1<br>19931||1995|
|---|---|---|---|---|---|
|Nominal loan volume<br>(Rp. millioll)|485.722|527.5391|459.889|510.269|713,555|
|<br>Growth in rcal loan<br>voluiie (perccnt)_______<br>|NA<br>__<br>||-16<br>|5<br>|<br>23<br>|
|<br>Loan volumie (US$)<br>|<br>246.559<br>|258.598<br>|218.995<br> <br>|234.06<br> <br>|312.963<br>|
|Numbcr of loans issued<br>|6.409<br>|4.689<br>|<br>3.079<br> <br>|<br>3.122<br>|4.148<br> <br>|
|Growth innumberof|23|-27|<br>-34|1|<br>33|
|loansissued(percent)||||||

accounted for 47 percent of all loans, and the unit with the smallest volume accounted for 4 percent. Over the last five years. combined lending for the four units has increased slightly in real terms in every year except 1993. However, this pattern belies important differences across units. Specifically, one unit grew at a real compound annual rate of about 32 percent, while lending volume in each of the other three units declined in real terms by an annual average compound rate of from I to 28 percent. The number of loans issued by the four units in 1994 was less than onehalf of the number issued in 199 1. Lending rebounded somewhat in 1995, when the number of loans issued approached two thirds of the number in 1991 (Table 19).

Table 20 LKP **Required and Voluntary Savings** Savings deposits grew rapidly between 1991 and 1993 (Table 20). However,

|20).<br>However,|___|1991|1992|**1993**|**1994**|**1995**|
|---|---|---|---|---|---|---|
|savings declined at a<br>real annual rate of 21|Total nominal savings<br>**(Rp.**million)|43.2|<br>57.3<br>_|77.9<br>__|67.1<br>_|64.4|
|in 1994 and 12<br>percent<br>1995.<br>Trends|Real growth in savings<br>(percent)|NA|<br>23|24|-21|-12|
|<br> <br> <br>in savings for|Total nominal savings (US$)|21953|28106|37093|30758|28249|
|<br>individual units<br>|<br>Total savings percent of total<br>outstanding loans<br>|.<br>36<br>|.<br> <br>39<br> <br>|.<br>50<br>|.<br>38<br>|,<br>30<br>|
|approximately<br>followed<br>this general|Voluntary savings percent of<br>net outstanding loansa|21|<br>22|35|22|18|
|pattern. By the end<br>of1993,voluntary|Real growth in voluntary<br>savings(percent)<br>I|_<br>I|15<br>|<br>_50_|<br>-31|6|

followed this general net outstanding loansa pattern. By the end Real growth in voluntary 15 _50_ -31 of 1993, voluntary savings (percent) I_ I savings were equal to a/ The volume of voluntary savings is compared to that of outstanding loans net 3 5 percent of units' of required savings because in practice, savings required to obtain a loan are outstanding loans net equivalent to borrowers receiving a smaller loan. Thus, comparing voluntary of bad debt and savings to loans net of required savings allows an analysis of the importance of required savings, but voluntary savings in funding loans. declined to 18 percent by 1995. In 1995, total savings for the four units stood at Rp. 64 million (about US$28,000).

a/ The volume of voluntary savings is compared to that of outstanding loans net of required savings because in practice, savings required to obtain a loan are equivalent to borrowers receiving a smaller loan. Thus, comparing voluntary savings to loans net of required savings allows an analysis of the importance of voluntary savings in funding loans.

**40** The volume of voluntary savings is compared to that of outstanding loans net of required savings because in practice, savings required to obtain a loan are equivalent to borrowers receiving a smaller loan. Thus,

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