Banks Still Need the Third-Party Funds despite the RIM Easement

By Editorial Team 02/09/2019
Summary

The banks expect the application of macroprudential intermediation ratio (RIM), going into effect on October 1, 2019, will decrease the large-cap bank funds problem. To improve liquidity, the banks usually compete with each other to earn the large-cap funds such as deposits. As quoted by bisnis.com on Thursday (8/28), Bank Mandiri Finance Director Panji Irawan mentioned that the liquidity ratio of the banks would get better following the application of RIM in October 2019.

He revealed that, based on the upcoming RIM formula,  the banks could include the bilateral credit funds between banks outside of the interbank money market (PUAB) based on a loan agreement to the third-party funds (DPK). The inclusion also meant the increase of banking liquidity. On March 2019, Bank Indonesia released a board of governors’ regulation (PADG) No. 21/5/PADG/2019 on the lowest and the upper limit of the RIM targets, which were 84 percent and 94 percent respectively.

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