2022 State Budget: Fiscal Policy and Structural Reform
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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