2022 State Budget and Fiscal Incentives Presentation
Strengthened MIR and Sharia MIR to accelerate economic recovery
To accelerate the economic recovery through stimulating bank lending to the corporate sector and export-oriented businesses, BI has decided
to strengthen Macroprudential Intermediation Ratio (MIR/Sharia MIR)) policy through the inclusion of export L/C as a financing component,
while incrementally introducing regulatory disincentives in the form of MIR related reserve requirement Expanding the scope of securities in
the formula to calculate MIR through the inclusion of a new component, namely export L/C, while maintaining the MIR/Sharia MIR at 84-94%
a. Incremental reintroduction of the MIR related reserve requirement (RR) disincentive for banks with an MIR below 75% from 1st May 2021,
below 80% from 1st September 2021 and below 84% from 1st January 2022:
i. 0.15 for banks with a gross NPL/NPF ratio below 5% and Minimum Capital Adequacy Requirement (KPMM) above 19%
ii. 0.10 for banks with a gross NPL/NPF ratio below 5% and Minimum Capital Adequacy Requirement above 14% and up to 19%
iii. 0.00 for banks with a gross NPL/NPF ratio below 5% and Minimum Capital Adequacy Requirement below or equal to 14%
iv. 0.00 for banks with a gross NPL/NPF ratio above or equal to 5%
c. The upper disincentive parameter is set at 0.00 for banks with a Minimum Capital Adequacy Requirement below or equal to 14% and banks
with a Minimum Capital Adequacy Requirement above 14%.
Current Regulation
New Regulation
Current Regulation
New Regulation
Regulation
MIR (CCB)
Sharia MIR
(SCB and
SBU)
Regulation
MIR (CCB)
Sharia MIR
(SCB and
SBU)
In the form of
and/or corporate
sukuk;
Criteria of
Securities
held
corporate bonds
In the form
of corporate
sukuk;
1.Issued by nonbank corporation
and residents.
2 Offered to the public through a
public offering.
3.Rated by a rating agency no
lower than investment grade.
4.Administrated by an institution
In the form of corporate
bonds and/or corporate
sukuk;
In the form
of corporate
sukuk;
Lower
Lower
NPL/NPF
KPMM
Disincentive
Parameter
NPL/NPF
KPMM
Disincentive
Parameter
Criteria of
Securities
held
1. Issued by nonbank corporation
and residents.
2. Offered to the public through a
public offering.
>19%
0.00
>19%
0.15
14%<KPMMS
14%<KPMM<
3. Rated by a rating agency no
lower than investment grade.
<5%
0.00
<5%
0.10
19%
19%
authorised to provide securities
settlement and custodial
services.
4. Administrated by an institution
authorised to provide securities
settlement and custodial services.
≤14%
0.00
<14%
0.00
≥5%
0.00
≥5%
0.00
In the form of export L/C,
Applicable to banks with an MIR/Sharia MIRbelow 75% from 1stMay 2021, below 80% from 1stSeptember 2021 and below 84% from 1stJanuary 2022
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