Jakarta (VNA) – The Indonesian Deposit Insurance Corporation (IDIC) has decided not to collect the guaranteepremium from banks in the second half of 2020 to help the industry manage itscash flow in the midst of COVID-19.
The decisionwas made to give room for bank moves, IDIC chairman Halim Alamsyah toldreporters on May 11 after acoordination meeting of the Financial System Stability Committee (KSSK).
With thiseasing policy, banks will not be fined for late paid premiums for the next sixmonths, he said.
The FinancialServices Authority (OJK) has earlier issued a regulation, urging banks torestructure debtors affected by the pandemic. The saving interest rate will belikely to drop significantly from currently 5.74 percent, disturbing the bank’sliquidity.
At the end ofthe first quarter of this year, the Rupiah deposits rate fell by an average of28 basis points to 5.50 percent. However, savings grew 10.2 percent year onyear, Alamsyah said, showing public confidence is still high in entrustingtheir funds to be deposited in national banks.
To help bank’liquidity, Indonesia’s central bank has poured 503.8 trillion Rupiah (33.58billion USD) through a quantitative easing policy. The regulators also preparedanchor bank and a number of schemes to overcome the liquidity problems in theIndonesian financial industry amid the pandemic./.
The decisionwas made to give room for bank moves, IDIC chairman Halim Alamsyah toldreporters on May 11 after acoordination meeting of the Financial System Stability Committee (KSSK).
With thiseasing policy, banks will not be fined for late paid premiums for the next sixmonths, he said.
The FinancialServices Authority (OJK) has earlier issued a regulation, urging banks torestructure debtors affected by the pandemic. The saving interest rate will belikely to drop significantly from currently 5.74 percent, disturbing the bank’sliquidity.
At the end ofthe first quarter of this year, the Rupiah deposits rate fell by an average of28 basis points to 5.50 percent. However, savings grew 10.2 percent year onyear, Alamsyah said, showing public confidence is still high in entrustingtheir funds to be deposited in national banks.
To help bank’liquidity, Indonesia’s central bank has poured 503.8 trillion Rupiah (33.58billion USD) through a quantitative easing policy. The regulators also preparedanchor bank and a number of schemes to overcome the liquidity problems in theIndonesian financial industry amid the pandemic./.
VNA
