Inflation Control and Financial Facilities Strategy
Principles of Macroprudential Intermediation Ratio (MIR) and
Macroprudential Liquidity Buffer (MLB)
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Considerations for Macroprudential Instruments
Macroprudential Intermediation Ratio (MIR) and
Macroprudential Liquidity Buffer (MLB)
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Striving to stimulate the bank
intermediation function and
liquidity management, Bank
Indonesia issued Bank Indonesia
Regulation (PBI) No.
20/4/PBI/2018 and Board of
Governors Regulation (PADG) No.
20/11/PADG/2018 concerning
the Macroprudential
Intermediation Ratio (MIR) and
Macroprudential Liquidity Buffer
(MLB) for Conventional
Commercial Banks, Sharia Banks
and Sharia Business Units.
The regulation is
effective for
conventional
commercial banks from
16th July 2018 and for
sharia banks from 1st
October 2018.
The policy is expected to
stimulate the bank
intermediation function to the
real sector congruent with
sectoral capacity and the
economic growth target in
compliance with prudential
principles, while also
overcoming the issue of
liquidity procyclicality.
This
macroprudential
policy instrument is
countercyclical and
can be adjusted in
line with prevailing
economic and
financial dynamics.
Source: Bank Indonesia
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