Featured Product

    OJK Develops Handbook for Integrated Governance, Risk, and Compliance

    August 05, 2020

    OJK announced that it has developed, in association with the Governance, Risk, and Compliance (GRC) Forum Indonesia, a handbook that contains principles, framework, maturity models, and assessment tools to facilitate the implementation of integrated GRC. OJK expects financial service actors to continue to improve the implementation of GRC to be able to detect and anticipate emerging risks such as cyber risk, cloud security risk, climate change risk, and risks associated with the COVID-19 pandemic. Additionally, OJK published a statement on the financial stability status of the country amid the COVID-19 pandemic. The Financial System Stability Committee (KSSK) of OJK, at its July 2020 meeting, concluded that the financial services sector has maintained stability in the second quarter of 2020 amid COVID-19 pandemic.

    The OJK statement highlights that, in June, the capital adequacy ratio for conventional commercial banks was at 22.59%. Liquidity adequacy was also well-maintained, as reflected in the Liquid Assets to Non Core Deposits (AL/NCD) ratio of 122.57% as of July 15, 2020 and in the Liquid Assets to Third Party Funds (LA/TPF) ratio of 26.02%, which are well above their respective thresholds of 50% and 10%. However, increased vigilance is required to be maintained to address the impact of the pandemic. OJK will continue to optimize the policies that have been issued to encourage national economic recovery by strengthening the role of the financial services sector. During the pandemic, OJK has issued various stimulus policies for the banking industry, capital markets, and non-bank financial industry,  in line with the efforts of the government to promote national economic recovery. OJK also supports the government program in issuing a credit guarantee scheme for micro, small, and medium enterprises (MSMEs) and corporations as well as a program for placing government funds into the banking industry to support lending to MSMEs. OJK will continue to monitor developments in the financial sector and be ready to take the necessary policy measures to maintain stability and enhance the role of the financial services sector. 

     

    Related Links (in Indonesian)

    Keywords: Asia Pacific, Indonesia, Banking, COVID-19, Governance, ESG, Credit Risk, SME, Cyber Risk, Cloud Computing, Loan Guarantee, Operational Risk, Basel, OJK

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311