BANKING
Banking Reserves Raised

BANK Indonesia issued a new regulation on minimum reserve requirements (GWM) and loan to deposit ratio (LDR). The GWM was raised from 5 percent to 8 percent of third party rupiah funds, while LDR is set at 78-100 percent. According to BI Governor Darmin Nasution, the policy takes into consideration the potential of inflationary pressures and the vast amount of excess liquidity.

With the increase in reserves the ce