Kamis, Februari 3, 2022

Gradual Increase in GWM to Commence from March as Excess Liquidity Set to Continue

The Governor of Bank Indonesia ("BI") has affirmed that the current excess banking liquidity is set to continue despite the upcoming increase in the statutory reserve requirements (giro wajib minimum – "GWM"). In order to normalize liquidity levels, a gradual increase in the GWM will be introduced starting from March 2022. The rupiah GWM is set to be increased by 300 basis points (bps) for conventional commercial banks and 150 basis points (bps) for sharia commercial banks and sharia business units. The increase will be rolled out gradually in March, June and September 2022.
However, the Governor of BI has also stated that the GWM increase will not negatively affect overall liquidity, noting the current excess liquidity. Accordingly, banks will still be able to channel loans and purchase state securities through the primary market. It is projected that a GWM decrease at the end of 2022 will also lead to a reduction in banking liquidity, as reflected in the decrease in the Third-Party Fund Liquidity Rate (Rasio Alat Likuid per Dana PihakKetiga) from 35% to 30%. _(ANT)

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

Professional Solutions

University Solutions

Pro

Rp 5.000.000 /bulan

Lihat Detail

Pro AI

Terfavorit

Rp 8.200.000 /bulan

Lihat Detail

Pro Compliance

New

Rp 12.500.000 /bulan

Lihat Detail

*Syarat dan ketentuan berlaku

The Governor of Bank Indonesia ("BI") has affirmed that the current excess banking liquidity is set to continue despite the upcoming increase in the statutory reserve requirements (giro wajib minimum – "GWM"). In order to normalize liquidity levels, a gradual increase in the GWM will be introduced starting from March 2022. The rupiah GWM is set to be increased by 300 basis points (bps) for conventional commercial banks and 150 basis points (bps) for sharia commercial banks and sharia business units. The increase will be rolled out gradually in March, June and September 2022.
However, the Governor of BI has also stated that the GWM increase will not negatively affect overall liquidity, noting the current excess liquidity. Accordingly, banks will still be able to channel loans and purchase state securities through the primary market. It is projected that a GWM decrease at the end of 2022 will also lead to a reduction in banking liquidity, as reflected in the decrease in the Third-Party Fund Liquidity Rate (Rasio Alat Likuid per Dana PihakKetiga) from 35% to 30%. _(ANT)

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

Professional Solutions

University Solutions

Pro

Rp 5.000.000 /bulan