November 28, 2017 / 1:22 PM / in 19 days

Indonesia central bank plans new rules to improve loan, liquidity

JAKARTA, Nov 28 (Reuters) - Indonesia’s central bank is seeking to improve credit distributions by banks and improve their liquidity management, Governor Agus Martowardojo said during its annual bankers dinner on Tuesday.

Bank Indonesia (BI) plans to expand the implementation of reserve requirement for Islamic banks, as well as reserve requirements for foreign currency denominated deposits, Martowardojo said. It will be expanded from currently conventional banks and rupiah denominated deposits.

BI plans to implement a new measure called “macroprudential intermediation ratio” to gauge wider liquidity. It could include wider distribution of financing, such as corporate bonds bought by banks.

The governor did not share details on when the rules will be issued. (Reporting by Fransiska Nangoy and Cindy Silviana Editing by Jeremy Gaunt)

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