Govt. Relaxes Provision on Macro-Prudential Intermediation Ratios for Banks

In order to maintain the overall stability of Indonesia’s financial system, as well as to enhance credit and financing disbursement, the Board of Governors of Bank of Indonesia (“BI”) has issued Regulation No. 21/5/PADG/2019 (“Third Amendment”) which amends Regulation of the BI’s Board of Governors No. 20/11/PADG/2018 on Macro-Prudential Intermediation Ratios and Macro-Prudential Liquidity Buffers for Conventional Commercial Banks, Sharia Commercial Banks and Sharia Business Units (“Regulation 11/2018”) for the third time.[1]