SDBI is a BI`s monetary instrument that could be traded between banks in the country.Jakarta (ANTARA News) - Bank Indonesia on Thursday auctioned off one month and three month Deposit Certificate (SDBI) to strengthen its liquidity control of the domestic financial market and banking industry.
The central bank is set to create stability in financial market, banking industry and state financial system as a whole, BI spokesman Difi A Johansyah said after a meeting of BI board of governors earlier on Thursday.
In a bid to strengthen BI`s monetary operations and banking liquidity management, Bank Indonesia, starting today will auction off 1 and 3 month SDBI," Difi A Johansyah said reading part of the decision of the BI leaders.
SDBI is a BI`s monetary instrument that could be traded between banks in the country.
It was the latest measure taken by Bank Indonesia and the government to shore up shrinking value of rupiah and Indonesian share market.
"Through stronger monetary operations, either through intervention in foreign exchange market and purchases of state securities from secondary market or through monetary operation in rupiah market, control has been maintained of liquidity condition in the financial market and banking industry," Difi said.
Difi said inter-bank overnight interest rate has been relatively stable around 4.8 percent, adding, and there was no significant increase in the volume of transaction in the financial market.
He said banking industry remained fundamentally strong as reflected by the high capital ratio and relatively low non performing loans(NPL).
Meanwhile, credit growth is on the decline to 19.6 percent on-year by mid August, 2013 to follow the country`s economic slowdown.
In the capital market, an increase in the yield of state securities was triggered by expected increase in inflation and international interest rates, while share prices began to climb in trade on August 28 after a sharp fall from the position in December 2012 on global crisis. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
