Per The Jakarta Post, bank lending in Indonesia grew by just 2.09% from December last year to June compared with 16.26% a year earlier. Working capital loans slid the most, a sign of firms’ reluctance to expand, and banks also cutback loans out of fear that non-performing loans (NPL)–currently at 3.94%– would increase beyond the central bank’s accepted 5% threshold. Yet central to the reasons why businesses are reluctant to borrow, argues Erwin Aksa, chairman of the Indonesian Young Entrepreneurs Association, are their lenders’ self-imposed, high deposit rates. Large sovereign bond issuances have driven up the cost of money, as do the demands of large depositors–most of whom are state-owned companies, and which currently account for roughly one-half of banks’ third-party funds. The vicious cycle impairs liquidity, however, as banks fear above anything else a loss of depositors and a sudden run

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AutoNation Inc. (AN) slumped the most in more than 4 months on speculation that the largest publicly-traded U.S. car retailer continues to face liquidity concerns.

The Ft. Lauderdale, Florida-based company has been suffering due to waning auto sales amid tighter credit markets and the deepening recession. AutoNation has been impacted by sales declines in California and Florida, where it holds a majority of the market share. The company's debts and interest charges have also been mounting.

On Wednesday, the Zacks #3 Rank ("Hold") company announced a new incentive program, saying it would cover up to 6 months of car payments on new or used vehicles if a customer suffers a layoff.

Shares of AN are down more than 11% today.

"AN" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research