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BI enhances macroprudential policies to support economic recovery

21 January 2022 09:13

JAKARTA – Bank Indonesia (BI) will strengthen accommodative macroprudential policies this year to boost bank financing to businesses in order to promote the national economic recovery program. It is included in Bank Indonesia Policy Mix directives in 2022, as stated by Erwin Haryono, Executive Director and Head of Communication Department of BI, in a press release quoted Friday (21/1).

It is further mentioned that the policy implementation will consider financial stability. The banks that distribute credits to the prioritised sectors and opt for inclusive financing will receive incentives in the form of the cut of daily minimum current accounts of up to 100 basis points (bps) from March 1, 2022, onwards.

The implementation of the Macroprudential Inclusive Financing Ratio (lit.Rasio Pembiayaan Inklusif Makroprudensial/RIPM) policy will be further enforced by demanding the bank’s commitment regarding the RIPM target, which was set according to the bank’s capability and business model. Then, BI will also maintain the Countercyclical Capital Buffer (CCyB) ratio at 0% and the Macroprudential Intermediate Ratio (MIR) at 84%-94%, with a lower limit of disincentive parameter of 84% since January 1, 2022. Then, it will keep the Macroprudential Liquidity Buffer (MPLB) Ratio at 6%, with repo flexibility of 6%, and the Sharia MPLB Ratio at 4.5%, with repo flexibility of 4.5%.

Additionally, the state bank will also solidify the credit base interest transparency policy by improving the spread of credit interest rate towards the deposit interest rate per bank group. (LK/ZH)

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