New BI rules good for Indonesian Banks: Moody’s

Bank Indonesia’s new regulation on the withdrawal of export proceeds and offshore debt will increase the supply of foreign exchange, says the credit rating agency.

  • 10 Oct 2011
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New offshore trade and financing regulations imposed by Indonesia’s central bank on October 3 are a boon for the country’s domestic banking sector as they will increase the supply of foreign exchange (FX), says Moody’s.

The new rules—which take effect from January 2 next year—are designed to ensure that companies receive proceeds from exports through domestic commercial banks, and that they withdraw proceeds from offshore borrowings and deposit them into these domestic banks.

“The rule is credit positive for the Indonesian banking system as it will increase the supply of foreign exchange at domestic banks,” said Falemri Rumondang, an associate analyst at Moody’s in the October 10 research note. “This is particularly relevant now, given that foreign currency lending at Indonesian banks has been increasing, compared with the lows of early 2010.”

“We note that a limited supply of foreign currency in the onshore market was a factor that exacerbated wholesale funding volatility in late 2008,” believes Moody’s. “In addition, Indonesian banks are not active issuers in the offshore capital markets. Keeping the recent deterioration in global markets in mind, it is important for banks to gain access to more stable foreign-currency funding sources.”

The Indonesian government estimates that the new rule will increase onshore deposits in foreign currency by US$30 billion.

  • 10 Oct 2011

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 Citi 3,599.18 10 11.11%
2 HSBC 1,925.24 7 5.94%
3 Bank of America Merrill Lynch 1,736.50 8 5.36%
4 Itau BBA 916.67 2 2.83%
5 Bradesco BBI 900.00 2 2.78%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Citi 2,421.53 5 33.29%
2 HSBC 937.89 2 12.90%
3 Itau BBA 916.67 2 12.60%
4 Bradesco BBI 900.00 2 12.37%
5 Morgan Stanley 800.00 1 11.00%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 10 Jan 2017
1 Standard Chartered Bank 295.00 1 32.24%
1 HSBC 295.00 1 32.24%
1 Credit Agricole CIB 295.00 1 32.24%
4 Mitsubishi UFJ Financial Group 30.00 1 3.28%
Subtotal 915.00 2 100.00%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 JPMorgan 195.08 50 10.55%
2 Goldman Sachs 162.26 37 8.77%
3 Morgan Stanley 141.22 46 7.64%
4 Bank of America Merrill Lynch 114.20 33 6.18%
5 Citi 95.36 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 UniCredit 4,163.05 29 12.35%
2 ING 3,184.83 25 9.45%
3 SG Corporate & Investment Banking 2,911.64 17 8.64%
4 Citi 2,741.75 18 8.13%
5 HSBC 1,822.32 18 5.41%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Jan 2017
1 State Bank of India 262.46 3 12.40%
1 Citi 262.46 3 12.40%
3 Standard Chartered Bank 242.57 3 11.46%
4 Mitsubishi UFJ Financial Group 191.19 2 9.03%
4 DBS 191.19 2 9.03%