Technical Provisions on Short-Term Liquidity Loans for Conventional Commercial Banks

As a follow up to Bank Indonesia(“BI”)Regulation No. 19/3/PBI/2017 on Short-Term Liquidity Loans for Commercial Banks(“BI Regulation 19/2017”), [1] the Members of BI’s Board of Governors have issued Regulation No. 19/6/PADG/2017 , which addresses the same matters (“Regulation 19/2017”). Regulation 10/2017 serves as set of technical guidelines for the granting of Short-Term Liquidity Loans (Pinjaman Likuiditas Jangka Pendek– “PLJP”) [2] to commercial banks which are undergoing periods of short-term financial-liquidity stress. [3] Prior to the issuance of Regulation 19/2017, this matter was regulated under BI Circular No. 15/11/DPNP of 2013 on Short-Term Liquidity Loans for Commercial Banks (“Circular 15/2013”).In essence, Regulation 19/2017 updates several provisions which address the following PLJP-related matters: