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OJK asks banks to speed up transmission of stimulus policies

06 March 2020 14:15

JAKARTA - The Financial Services Authority (OJK) has asked banks to speed up the transmission of stimulus policies issued by the Government, OJK and Bank Indonesia to deal with the weakening economy due to the spread of the Corona virus.

"The bank plays a role in transmitting the stimulus policies of the Government, OJK and Bank Indonesia that have been issued. The transmission is expected to provide room for the real sector to keep running its business," said Chairman of the OJK Board of Commissioners Wimboh Santoso after holding a meeting between the Directors of Bank Book 3 and Book 4 with Coordinating Minister for the Economy Airlangga Hartarto, Finance Minister Sri Mulyani and BI Governor Perry Warjiyo at the OJK Office on Thursday.

Wimboh explained that various stimulus policies issued by the OJK and BI had provided ample space for banks to adjust their lending rates because the availability of liquidity became large enough in the market so that banks could be utilized to channel loans or cheap financing and could move the real sector.

According to him, if the banking sector carries out the stimulus policy transmission function that has been issued by the Government, OJK and BI, it is expected to minimize the adverse effects of the economic slowdown due to the spread of the Corona virus. (LM)

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