ID :
34270
Sat, 12/06/2008 - 17:59
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http://m.oananews.org//node/34270
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LOWERING OF MINIMUM RESERVES REQUIREMENT INEFFECTIVE: RESEARCHER
Jakarta, Dec 6 (ANTARA) - Executive researcher of Bank Indonesia (BI)'s Monetary Policy Bureau, Wiwik Sisto Widayat said the lowering of banks' minimum reserves requirement (GWM) was not successful in generating inter-bank liquidity transactions.
"Though banks have liquidity, inter-bank liquidity transactions do not happen so that banks with shortage of funds still face difficulties to obtain funds in the inter-bank money market," she said here on Friday.
Wiwik said that trillions of rupiah had been released to banks after adjustments to the GWM had been made.
She said that the GWM in rupiah had been reduced to 7.5 percent, consisting of 5 percent funds from the third party and 2.5 percent in the form of state debentures or Bank Indonesia Certificates (SBI). About Rp40 trillion had been released.
In the meantime the GWM in the foreign exchange form had also been cut to three percent while banks have received US$700 million in liquidity.
"But the additional liquidity has not generated a good inter-bank liquidity transactions. Banks which received the liquidity are unwilling to sell the funds to other banks and prefer to keep them for their own," she said.
Wiwik said that a large amount of liquidity was re-deposited with Bank Indonesia through BI's short-term monetary instruments because by doing so they felt secure when at any time they needed it again.
"Though banks have liquidity, inter-bank liquidity transactions do not happen so that banks with shortage of funds still face difficulties to obtain funds in the inter-bank money market," she said here on Friday.
Wiwik said that trillions of rupiah had been released to banks after adjustments to the GWM had been made.
She said that the GWM in rupiah had been reduced to 7.5 percent, consisting of 5 percent funds from the third party and 2.5 percent in the form of state debentures or Bank Indonesia Certificates (SBI). About Rp40 trillion had been released.
In the meantime the GWM in the foreign exchange form had also been cut to three percent while banks have received US$700 million in liquidity.
"But the additional liquidity has not generated a good inter-bank liquidity transactions. Banks which received the liquidity are unwilling to sell the funds to other banks and prefer to keep them for their own," she said.
Wiwik said that a large amount of liquidity was re-deposited with Bank Indonesia through BI's short-term monetary instruments because by doing so they felt secure when at any time they needed it again.
