Bisnis.com, JAKARTA — Bank Indonesia (BI) is pushing for more aggressive lending in the banking sector to support economic recovery, but the declining growth of third-party funds (deposits) and lackluster loan distribution may prove headwinds to these efforts.
In order to raise liquidity, BI increased the maximum limit of the external financing ratio (EFR) from 30% to 35% of a given bank’s capital and lowered the macroprudential liquidity buffer ratio from 5% to 4% for conventional banks, and 3.5% to 2.5% for sharia banks. Both categories also receive repurchase agreement (repo) flexibility: 4% for conventional and 2.5% for sharia.
