Featured Product

    OJK Publishes Regulatory Notifications Amid COVID-19 Pandemic

    April 30, 2020

    OJK issued a statement highlighting that the stability of the financial services sector has been good until April, even amid the COVID-19 pandemic. It also issued certain regulatory statements to address provisions related to restructured credit for debtors affected by the pandemic and on the timelines for submission of periodic reports, among others. This regulation has been effective from April 14, 2020. OJK published Financial Information Service System (SLIK) reporting guideline for restructured credit or financing due to COVID-19 impact, along with the related frequently asked questions (FAQs).

    Economic data shows that COVID-19 pandemic has caused significant pressure on the global economy. Through a number of anticipatory policies (pre-emptive) and forward-looking assessments, which are reflected in financial, fiscal, and monetary sector stimulus, Indonesia is able to control volatility in the financial markets, which rose sharply in line with the increasing spread of COVID-19. The risk profile of financial service institutions in March 2020 was maintained at a controlled level with a gross non-performing loan (NPL) ratio of 2.77%. Meanwhile, banking liquidity and capital are at an adequate level. The liquid/non-core deposit ratio is monitored at 112.90%, above the 50% threshold. In addition, OJK continues to monitor the daily liquidity conditions of financial service institutions, including the availability of High Quality Liquidity Asset in the form of securities. Capital adequacy ratio of banks was recorded at 21.77% and risk-based capital of the life insurance and general insurance industries respectively 643% and 297%, above the regulatory threshold of 120%.

    Credit relief from banks and finance companies for debtors affected by COVID-19, up to April 26, has been carried out by 65 banks. OJK also welcomed and supported the efforts of government in implementing a further economic stimulus policy related to the provision of interest subsidies for bank debtors and finance companies. OJK and the government will prepare provisions for the implementation of this further stimulus program. The following interest subsidies will be given for six months (April-September 2020):

    • Interest rates for clusters below IDR 500 million are 6% for the first three months and 3% for the next three months
    • Interest rates for clusters above IDR 500 million to IDR 10 billion are 3% for the first three months and 2% for the next 3 months

     

    Related Links (in Indonesian)

    Keywords: Asia Pacific, Indonesia, Banking, COVID-19, Reporting, Restructured Loans, Regulatory Capital, Liquidity Risk, Credit Risk, NPL, OJK

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206