FACTBOX-Indonesia's new bank regulations

JAKARTA, Sept 3 (Reuters) - Indonesia's central bank announced new regulations on Friday covering bank lending and reserve requirements, aiming to push up the pace of economic growth and provide additional monetary and financial system stability in the face of high capital inflows.

For a Q+A on the regulations, see [ID:nJAK347883]

Below are the key points announced:

* All banks will have to set aside minimum reserves with the central bank of 8 percent in cash -- compared with 5 percent previously -- and 2.5 percent, unchanged, which can be cash, bills or bonds, with effect from Nov 1.

* While the primary reserve requirement has been raised to 8 percent from 5 percent, banks which meet the requirement will get back 2.5 percent of the amount represented by the 3 percentage point increase.

* Banks which fail to meet the 8 percent primary reserve requirement will be penalised as they will have to pay the equivalent of 125 percent of the average one-day overnight Jakarta interbank offered rate (JIBOR).

* Bank Indonesia also introduced a new reserve requirement which is linked to the loan-to-deposit ratio, or LDR, which it set at 78-100 percent with effect from March 1.

* Banks which fail to meet the new LDR requirement will be penalised, and will be required to put up additional reserve requirements.

* If a bank's LDR is below 78 percent, it must put up more cash reserves equivalent to 0.1 percent of its rupiah deposits for every 1 percentage point below the LDR target.

* For a bank whose LDR is above 100 percent and which has a capital adequacy ratio of below 14 percent, there will be a penalty of putting more cash reserves equivalent to 0.2 percent of its rupiah deposits for every 1 percentage point above the LDR target.

* There is no penalty for banks with an LDR above 100 percent and which have a capital adequacy ratio above 14 percent.

* The new requirements are expected to mop up 50 trillion rupiah ($5.55 billion) of excess liquidity. ($1=9,008 Rupiah) (Editing by Sara Webb)