Where does the money that indó lends come from?

indó, like other banks and savings banks, has the role of "re-lending" customer deposits. This means that customers deposit their salaries or savings into indó accounts, and indó essentially safeguards this money for its customers.

Indó’s role is to invest these deposits, among other things, to pay the interest owed to depositors and cover its operating costs. This involves using the funds to purchase government bonds, deposit money into Central Bank accounts, and more. In this way, indó obtains the funds it uses to lend to other customers, such as those requesting an overdraft.

indó is responsible for ensuring that the loans it provides are repaid, as it is essentially lending out the savings of other customers who trust indó with their earnings and savings.

To mitigate risk, indó has a robust risk management system to closely monitor these loans. Additionally, the savings bank has substantial financial resources from its owners (share capital), which further reduces the risk associated with lending money.

indó will proceed cautiously in increasing its lending, always striving to thoroughly understand the risks involved at any given time before expanding its lending operations.