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Fewer banks use new GWM rule
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Bank Indonesia senior deputy governor Mirza Adityaswara speaks in a journalist workshop held by the central bank in Jakarta from Nov.19 to Nov.21. (JP/Fadli)
B
ank Indonesia (BI) has urged more banks to utilize a new relaxed regulation on the average primary reserve requirement (GWM) -- the minimum amount of bank’s liquidity in BI’s reserve -- in order to improve their fund management.
“BI hopes that banks make use of the averaging-GWM [rule] as not all of them have utilized it, according to BI’s data,” said BI senior deputy governor Mirza Adityaswara in Jakarta on Friday.
According to the new rule, called "averaging-GWM", banks must set aside an average of 2 percent of its third-party, rupiah-denominated funds within a two-week period, higher than the 1.5 percent BI previously set.
Last week, BI also issued two regulations called the Intermediary Macroprudential Ratio (RIM) and Macroprudential Liquidity Buffer (PLM), which are expected to help banks further sharpen liquidity and loan management.
The RIM policy expands the inclusion of securities owned by banks in the lenders’ intermediary ratio calculation. Mirza said the new RIM policy was aimed at helping banks to channel their funds through the bond market as well as deepen the country’s financial market.
As for the PLM rule, he said, banks would be allowed to sell 2 percent of their securities assets to BI when they were short of liquidity in a bid to bring greater flexibility to them in managing their liquidity. (gda)
