PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5138 56. RISK MANAGEMENT continued
Market and Liquidity Risk continued
a. Liquidity Risk Management continued
The liquidity level of the Bank is measured through the Minimum Reserve Requirement as regulated by Bank Indonesia in Bank Indonesia regulation No. 1025PBI2008 dated 23 October 2008
concerning amendment of PBI No. 1019PBI2008 regarding Statutory Reserves at Bank Indonesia for commercial Banks in Rupiah and foreign currencies. In accordance with the regulation, the
minimum ratio of statutory reserves which Bank shall maintain is 7.50 from Third Party Funds TPF in Rupiah which consists of Primary Statutory Reserve and Secondary Statutory Reserves
and 1.00 from TPF in foreign currency. Primary statutory reserves is 5.00 of TPF in Rupiah was effective as at 24 October 2008 and Secondary Statutory reserves is 2.50 of TPF in Rupiah was
effective as at 24 October 2009.
As at 31 December 2009, the Bank’s primary and secondary reserve for Rupiah is 5.00 and 42.29, respectively and 1.32 for secondary reserve for foreign currency.
The Bank’s potential liquidity risk is assessed and monitored through a liquidity gap analysis, which is a projection of the future. Based on the Bank’s 2009 plan Rencana Kerja dan Anggaran
Perusahaan, or RKAP, the Bank’s liquidity is projected to be in a surplus position over the next 12 months. Each funding deficit projection is monitored through Maximum Cumulative Outflow MCO
limit.
The Bank’s ability to handle differing liquidity pressures is assessed by running a range of liquidity scenarios that covers both normal and unusual situations. These also include scenarios for extreme
or crisis conditions stress testing, which then generates contingency plans.
According to the contingency funding plan, the Bank may source its funding needs in bank specific crisis by borrowing ex: repurchase agreement, bilateral funding, collateralised facility agreement,
foreign exchange swap, selling and marketable securities such as Government Debenture Debt and through pricing strategy for third party funding. In general market crisis, bank may source its
funding needs from its secondary reserve which has been build previously or through the liquidity facility from Bank Indonesia.
b. Interest Rate Risk Management
