Indonesia central bank plans new rules to improve loan, liquidity


Governor of Bank Indonesia Agus Martowardojo speaks during a news briefing at the bank's headquarters in Jakarta, Indonesia, November 16, 2017. REUTERS/Darren Whiteside
JAKARTA: Indonesia’s central bank is seeking to improve credit distributions by banks and improve their liquidity management, governor Agus Martowardojo said during its annual bankers dinner on Tuesday.

Bank Indonesia (BI) plans to expand the implementation of reserve requirement for Islamic banks, as well as reserve requirements for foreign currency denominated deposits, Martowardojo said. 

It will be expanded from currently conventional banks and rupiah denominated deposits.

BI plans to implement a new measure called “macroprudential intermediation ratio” to gauge wider liquidity. It could include wider distribution of financing, such as corporate bonds bought by banks.

The governor did not share details on when the rules will be issued. - Reuters

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