BMRI’s current liquidity is fairly relaxed, in line with the gradually decreasing Loan to Deposit Ratio (LDR). As of March 2020, BMRI LDR was at 94.9%, then decreased to 87.7% in June 2020. This figure is the lowest since December 2016 at 86.5%. Declining demand and selective lending made BMRI’s total loan amounting to IDR 871.7 trillion or only grew by 4.4%. Meanwhile, third party funding (DPK) of BMRI recorded at IDR 976.6 trillion or grew by 15.8% YoY per June 2020. Placement in state securities (SBN) especially the fixed rate notes, is a part of BMRI’s strategy to make up the lost of potential interest income. This can be seen in fund placements on SBN and Gov’t Bonds & Marketable Securities worth IDR 223.5 trillion, higher than the fund placement in Central Bank and cash, which amounted to IDR 200 trillion.
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