Monetary Operations :Standing Facilities
Standing facilities are parts of monetary operation which function to limit the volatility of O/N interbank rates.
As with open market operations, standing facilities are divided into two categories:
- Provision of Rupiah funds to bank (lending facility): the facility for banks experiencing liquidity problems by using its SBI and/or SBN as an underlying for the repo transaction with Bank Indonesia.
- Placement of Rupiah funds in Bank Indonesia by banks (deposit facility): the facility for banks with excess liquidity by placing its own funds to Bank Indonesia.
As stipulated in the Bank Indonesia Law, monetary operations may also be conducted using sharia-compliant mechanisms, as shown in the boxes with green shading.
Instrumen Standing Facilities
|
Instruments and descriptions |
Deposit Facilities |
Lending Facilities |
|
Deposit Facility |
Deposit Facility – FASBIS |
Lending Facility |
Financing Facility |
|
Liquidity impact |
Reducing liquidity |
Expanding liquidity |
|
Frequency of transactions |
Regular daily transactions |
Regular daily transactions |
|
Tenor |
Overnight |
Overnight |
|
Minimum nominal bid |
Rp1,000m |
- |
|
Nominal multiples |
Rp100m |
- |
|
Transaction mechanism |
FRT |
FRT |
|
Settlement |
T+0 |
T+0 |
|
Interest rates |
BI Rate – 175 bps |
BI Rate + 100 bps |
|
Counterparties |
Banks |
Banks |
Notes:
- Before 7 July 2010, Deposit Facility called FASBI
- Before 7 July 2010, Lending Facility called Repo O/N
- FASBIS: Bank Indonesia Islamic Deposit Facility
- Financing Facility: Lending Facility on Sharia based