ID :
98595
Thu, 01/07/2010 - 09:11
Auther :
Shortlink :
https://www.oananews.org//node/98595
The shortlink copeid
BI TO ENCOURAGE BANKS TO EXTEND MORE CREDITS
Jakarta, Jan 6 (ANTARA) - Bank Indonesia (BI) is currently formulating a policy to encourage banks to extend more credits to the public instead of investing their funds in securities such as state debentures and other investment instruments.
The central bank's acting governor, Darmin Nasution, said at a press conference here on Wednesday the policy would provide incentives or disincentives for national banks which are active in distributing credits to the people and businesses.
He said the policy would link banks' reserve requirement with their loan-to-deposit ratios.
"BI will make a provision regarding the reserve requirement which will be linked with the loan-to-deposit ratio. So if banks are more active in distributing credits their reserve requirement will be smaller than if they prefer to put their funds in securities and the like," he said.
In addition to it, BI will also continue its policy on deposit interest which has been agreed to be not too far from the BI reference rate or around the interest of deposit insurance set by the Deposit Insurance Institute (LPS).
Darmin said the policy which has been made effective as of September 2009 would be maintained so that banks would not compete to set a high deposit interest to make the cost of fund high.
With a high cost of fund it would be difficult for banks to reduce lending rates so that demand for credits will be low, he said.
Darmin said BI would also continue to make efforts to lower credit interests through narrowing the spread.
He said the policy would be made known soon. "It will be made known soon totally or part by part," he said.***
The central bank's acting governor, Darmin Nasution, said at a press conference here on Wednesday the policy would provide incentives or disincentives for national banks which are active in distributing credits to the people and businesses.
He said the policy would link banks' reserve requirement with their loan-to-deposit ratios.
"BI will make a provision regarding the reserve requirement which will be linked with the loan-to-deposit ratio. So if banks are more active in distributing credits their reserve requirement will be smaller than if they prefer to put their funds in securities and the like," he said.
In addition to it, BI will also continue its policy on deposit interest which has been agreed to be not too far from the BI reference rate or around the interest of deposit insurance set by the Deposit Insurance Institute (LPS).
Darmin said the policy which has been made effective as of September 2009 would be maintained so that banks would not compete to set a high deposit interest to make the cost of fund high.
With a high cost of fund it would be difficult for banks to reduce lending rates so that demand for credits will be low, he said.
Darmin said BI would also continue to make efforts to lower credit interests through narrowing the spread.
He said the policy would be made known soon. "It will be made known soon totally or part by part," he said.***
