Inflation Control and Financial Facilities Strategy slide image

Inflation Control and Financial Facilities Strategy

Principles of Macroprudential Intermediation Ratio (MIR)* MIR Sharia (Sharia Banks and Sharia Business Units) Financing + Owned Sharia Bond Deposit Issued Sharia Bond Regulation MIR (Conventional Commercial Bank) 1 MIR Accounting Formula Credit Owned Bond Deposit Issued Bond 2 Rate and Parameters . Ceiling 94% • Ceiling 94% • Floor 84% • Floor 84% 3 Scope of credit/financing and deposits to calculate MIR MIR Sharia 4 Source of Data 5 Criteria for securities held • Minimum Capital Adequacy Requirement • Minimum Capital Adequacy Requirement 14% 14% Upper disincentive parameter 0.2 • Lower disincentive parameter 0.1 • Credit: rupiah and foreign currency • For Sharia business units, the Minimum Capital Adequacy Requirement is the same as that of the parent conventional commercial bank • Upper disincentive parameter 0.2 • Lower disincentive parameter 0.1 • • Deposits in rupiah and a foreign currency: • (i) demand deposits, (ii) savings deposits; and (iii) term deposits, excluding interbank funds Monthly Commercial Bank Reports • Corporate bonds and/or corporate sukuk Financing: rupiah and foreign currency Deposits in rupiah and a foreign currency: (i) wadiah savings; and (ii) unrestricted investment funds, excluding interbank funds Monthly Sharia Bank Reports Corporate bonds and/or corporate sukuk • Issued by a nonbank corporation and by a resident • Offered to the public through a public offering • Equivalent to investment grade rating affirmed by a rating agency • Administrated by an authorised securities institution *As part of further relaxation on macroprudential policy, an adjustment will be applied starting from December 2nd, 2019 127
View entire presentation