Lending Is Not Going down, in the middle Relaxation The Minimum Reserve Requirement
In addition to setting the benchmark interest rate (BI rate) on Tuesday (17/11), the Board of Governors of Bank Indonesia (RDGBI) also lowered the minimum reserve requirement primary rupiah from 8% to 7.5% of third party funds. The purpose of this GWM relaxation, to boost credit growth. Meanwhile, the banking sector rate, it has the potential to widen the relaxation of lending space, but its effectiveness has not been a direct impact on the reduction in financing interest.
bank lending selective, relaxation GWM make a positive sentiment for the market Government Securities (SBN), both Government Securities (GS) and Shariah Securities (SBSN / Sukuk). High liquidity reserve requirement as a decrease of 50 bps, will make the banking sector look for investment alternatives, the post portion of this sector had declined below Rp 400 trillion. Based on data from the Directorate General of Finance and Risk Management (DJP2R), bank ownership in the SBN Rp 398.6 trillion per 13 November 2015, the lowest in three weeks. For the record, the banking sector is the second-largest share after foreign investors in government securities.
In addition, bank lending constraints facing the lending that is not necessarily down; as speculation increase in the Fed Funds Rate (FFR) makes BI keep its benchmark interest rate to survive on the same level within a period of 10 months. For information, shut down in 2015, investors will be presented 3 auctions (tentative) final, that is: as much as 2 auction debt securities and 1 switch
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