2022 State Budget: Fiscal Policy and Structural Reform
Adjustment of Macroprudential Intermediation Ratio (MIR)/Sharia
Macroprudential Intermediation Ratio (Sharia MIR)*
Bank Indonesia strengthens accommodative macroprudential policy through an adjustment to the Macroprudential Intermediation Ratio by
including the loan/financing received by banks as a component of funding in MIR/sharia MIR.
Policy Backgrounds
•
•
In response to global and domestic economic
developments, BI is maintaining an
accommodative policy mix to maintain the
economic growth while also maintaining
macroeconomic and financial system stability.
BI relaxed MIR/sharia MIR policy in March
2019, which stimulated bank lending.
Nevertheless, the macroprudential
intermediation ratio (MIR) is again
approaching the upper bound, thus
necessitating efforts to increase bank lending
capacity.
Considering the potential of bank funding
sources that are not included in the MIR ratio,
for example the expanding share of
loans/financing received by banks, BI decides
to adjust MIR/sharia MIR policy in order to
optimize loans/financing received for bank
lending.
This policy to stimulate credit growth will
comply with prudential principles. Therefore,
Bl is only encouraging banks with low non-
performing loans and adequate capital
resilience to expand credit/financing.
Main Regulatory Points
.
Including loan received by conventional commercial banks and financing received by Islamic banks and Islamic
business units as a source of bank funding in the calculation of MIR/sharia MIR.
The criteria for loans/financing received by banks that are eligible to be included in MIR/sharia MIR calculation
are as follows:
a.
Loans/financing received in Rupiah and foreign currency;
b. Loans/financing received in the form of bilateral loans and/or syndicated loans for conventional commercial
banks, Islamic banks and Islamic business units;
C.
Loans/financing excludes interbank loans/financing.
d. Loans/financing received with a maturity of no less than 1 year; and
Loans/financing received based on a loan agreement.
e.
Based on points a and b, the adjusted MIR/sharia MIR formula is as follows:
Credit + Owned Bond
Deposit + Issued Bond + Loan/Financing Received
Lower disincentive parameter
Upper disincentive parameter
MIR/sharia MIR RR=
Upper Bound of
MIR/Sharia MIR Target - ) x Deposit
MIR/sharia MIR RR=
Lower Disincentives Parameter x (Lower Bound of MIR/Sharia MIR 0.2 x (Bank's MIR/sharia MIR
Target - Bank's MIR/Sharia MIR) x Deposit
NPL
≥ 5%
CAR
KPMM 14%
< 5%
149 KPMM ≤ 19%
KPMM > 19%
Lower Disincentives Parameter
0.00
*This disincentive applies for banks with CAR below 14%.
0.00
0.10
0.15
*This adjustment will be effective from December 2nd, 2019
Source: Bank Indonesia
The reference rate used to calculate penalties for banks that do not meet MIR/sharia MIR policy will be adjusted
from the Jakarta Interbank Offered Rate (JIBOR) to the Indonesia Overnight Index Average (IndONIA).
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