Summary Bank Indonesia Laws
| Regulation : | Bank Indonesia Circular Letter No. 9/21/DPM dated September 26, 2007, concerning Second Amendment to Bank Indonesia Circular Letter No. 6/7/DPM dated February 16, 2004, concerning Short-term Funding Facilities for Commercial Banks | | Effective date : | September 26, 2007 | |
Summary :
In order to improve provisions concerning calculation of securities price and by the issuance of Treasury Bill (SPN) in secondary markets on May 30, 2007, and Government Bond (ON) without Coupon (Zero Coupon Bond) in the primary market on August 28, 2007, it is deemed necessary to improve provisions in Bank Indonesia Circular Letter concerning Short-term Funding Facilities (FPJP) for Commercial Banks as follows.
- The types of securities which may be used as FPJP collateral and the methods of calculation of securities to be provided by a Bank in obtaining FPJP are stipulated as follows.
- The calculation of price of an SBI as the FPJP collateral shall apply SBI theoretical price taking account of the weighted average of discount rate upon issuance and remaining days to maturity of the SBI to be collateralized. This replaces the SBI theoretical price which takes account of the weighted average price of SBI collateralized in secondary market on T-1 and remaining days to maturity.
- The calculation of price of a SUN as the FPJP collateral shall apply a theoretical price calculation method. This replaces the price calculation method which applies the latest data or the market value of SUN which is not traded on T-1 and/or SUN which has never been traded in secondary market.
- The example of calculation of the maximum negative balance of demand deposit account which may be covered by FPJP based on SUN (Treasury Bond, Treasury Bond without Coupon, and Treasury Bill) market value and SBI trade value is adjusted.
- The name of work unit in Bank Indonesia as the address for submission of requests for FPJP is adjusted.
