BI Perfected Interbank Offered Rate
1 April 2015 12:38 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) has perfected the Jakarta Interbank Offered Rate (JIBOR) through BI Regulation No.17/2/PBI/2015 issued on March 26 2015. The central bank's senior deputy governor Mirza Adityaswara said the JIBOR has existed since 1993, but interest rates did not reflect actual conditions.
"Perfection was needed to have interest rates that are more credible and could be used as reference for banks and the credit markets," he said yesterday.
Mirza hopes the JIBOR improvement can increase efficiency and reduce the complexity of financial transactions for all market participants, as they will now use the same reference rate for each tenor.
JIBOR is the average interest rate on loans without collateral offered, and intended to be transacted by contributor banks that lend money for a certain maturity period. The JIBOR will be set as the reference for banks in lending.
In the rule, BI names 21 banks considered to have the most balanced ratings as contributors. Bank contributors are tasked with providing references to determine the JIBOR.
TRI ARTINING PUTRI