Indonesia central bank issues new banking rules on mandatory small and medium business lending

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JAKARTA: Indonesia's central bank has issued new rules making it easier for banks to meet requirements on supporting small and medium business, in a measure also aimed at bolsteri

has issued new rules making it easier for banks to meet requirements on supporting small and medium business, in a measure also aimed at bolstering an economic recovery from the COVID-19 pandemic, it said in a statement.

Under the new regulation, which takes effect in June next year, banks must provide financing of at least 20 per cent of their total portfolio for MSMEs, their supply chains or low income earners in what Bank Indonesia calls the macroprudential inclusive financing ratio .

 

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