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)
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  • 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)
......

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Rp 4.500.000

per bulan

  • Semua Fitur Paket Standard
  • Terjemahan Peraturan
  • Peraturan Konsolidasi
  • Premium Stories
  • Monthly Law Review (MLR)
  • Indonesian Law Digest (ILD)

STANDARD

Rp 2.500.000

per bulan

  • Indonesian Legal Brief (ILB)
  • Daily Updates
  • Bantuan Layanan Pencarian Peraturan
  • Pusat Data Peraturan dan Putusan Pengadilan Non-Precedent