ID :
23633
Fri, 10/10/2008 - 14:52
Auther :
Shortlink :
http://m.oananews.org//node/23633
The shortlink copeid
BI LOWERS OBLIGATORY GIRO PAYMENTS TO 7.5 PCT
Jakarta, Oct 9 (ANTARA) - Bank Indonesia decided here on Thursday to lower minimum obligatory giro payments (GWM) from 9.08 percent to 7.5 percent of third party funds to give banks excess liquidity.
Central Bank deputy senior governor Miranda Gultom said BI had also decided not to link the GWM with the loan to deposit ratio.
"But the proportion for the primary or statutory reserve and secondary reserve still has to be determined later," she said.
Although the decision was made on Thursday it would only be implemented next month because the change would still be followed by changes in a number of banking systems.
"According to our calculation the policy will add tens of trillions of rupiahs permanently to the Indonesian banking system," she said.
She said she was not worried about the impact of the policy on bank capitalization because the capital adequacy ratio of banks now standing at around 16 percent was higher than the international standard.
"Even if it drops to 12 percent the banks still have room to give financing up to Rp277 trillion," she said.
With the change, the GMW calculations would become simpler and Bank Indonesia would be more able to measure the impact of volatility in the banking liquidity, she said.
Central Bank deputy senior governor Miranda Gultom said BI had also decided not to link the GWM with the loan to deposit ratio.
"But the proportion for the primary or statutory reserve and secondary reserve still has to be determined later," she said.
Although the decision was made on Thursday it would only be implemented next month because the change would still be followed by changes in a number of banking systems.
"According to our calculation the policy will add tens of trillions of rupiahs permanently to the Indonesian banking system," she said.
She said she was not worried about the impact of the policy on bank capitalization because the capital adequacy ratio of banks now standing at around 16 percent was higher than the international standard.
"Even if it drops to 12 percent the banks still have room to give financing up to Rp277 trillion," she said.
With the change, the GMW calculations would become simpler and Bank Indonesia would be more able to measure the impact of volatility in the banking liquidity, she said.
