Indonesia moots new rule to boost bank lending

bank-indonesia

Bank Indonesia is on Friday set to propose new regulations to spur bank lending.

The central bank plans to introduce a rule that requires banks to maintain a loan-to-deposit ratio of between 78% and 102%. This would effectively increase the loan-to-deposit ratio for most banks, which, on average, lend the equivalent of 75% of their deposits, the central bank believes.

Lenders will be given six months to adjust their lending ratios, meaning the change will take effect next February. Failure to

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