Indonesian central bank to ease reserve requirement rules in 2017 - governor
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Indonesia's Central Bank Governor Agus Martowardojo speaks to reporters at Bank Indonesia headquarters in Jakarta, Indonesia, November 17, 2016. REUTERS/Beawiharta
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
By Gayatri Suroyo and Hidayat Setiaji
JAKARTA (Reuters) - Indonesia's central bank will next year give banks more leeway in meeting day-to-day reserve requirements, to reduce volatility in money-market rates, Governor Agus Martowardojo said on Tuesday.
He told Bank Indonesia's annual bankers' dinner that commercial lenders would have to keep an average 6.5 percent of their total rupiah deposits at the central bank over a period of one or two weeks, rather than having to meet the requirement every day, as now.
Martowardojo said the move should "help banks to absorb temporary liquidity shock so that it will not inflict excessive volatility in interest rates", and that the new rule would be introduced by the second half of 2017.
The pace of lending has dropped in Indonesia this year - despite the BI cutting interest rates by a total of 150 basis points - crimping government and central bank efforts to raise economic growth to above 5 percent.
Jahja Setiaatmadja, president director of Indonesia's biggest lender by market value, Bank Central Asia
Tigor Siahaan, chief executive of Bank CIMB Niaga
Martowardojo also said the BI was planning new rules for companies offering payment services, requiring them to keep all the money for settlement, as well as transaction data, onshore in Indonesian banks.
(Reporting by Gayatri Suroyo and Hidayat Setiaji; Editing by Kevin Liffey)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- At least 10 killed by collapse of church in southern Nigeria: resident
- Car bomb explodes outside Somalia capital Mogadishu's port, three killed: police
- Ghana's next leader under pressure to deliver for impatient voters
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!