Regulatory Alerts2013-09-26
Bank Indonesia Regulation No. 15/7/PBI/2013 on the Second Amendment to Regulation No. 12/19/PBI/2010 on Reserve Requirements of Commercial Banks
Bank Indonesia issued this regulation to amend the reserve requirement framework for commercial banks in order to maintain liquidity adequacy and support financial sector stability. The amendment establishes a phased increase in the Secondary Reserve Requirement in Rupiah, rising from 2.5% to 4% between September and December 2013, while setting the Primary Reserve Requirement at 8% of Third Party Funds. It also defines the parameters for the Reserve Requirement by Loan-to-Deposit Ratio, including a Target Loan-to-Deposit Ratio range of 78% to 92% and an Incentive Capital Adequacy Ratio of 14%.
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