Regulatory Alerts2015-11-16
Bank Indonesia Circular Letter No. 17/39/DPM Concerning Standing Facilities
Bank Indonesia issued Circular Letter No. 17/39/DPM to re-regulate the implementing provisions for Standing Facilities, which serve as instruments for injecting and absorbing rupiah liquidity in the money market. The document defines the operational characteristics, window times, and settlement mechanisms for both the lending facility, priced at the BI Rate plus a margin, and the deposit facility, priced at the BI Rate minus a margin. It further establishes strict sanction imposition mechanisms, including financial penalties and temporary suspensions, for commercial banks that fail to meet their settlement obligations.
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