OJK Proposes Regulation on Risk Management for Non-Bank Entities
OJK issued a consultation on draft regulation on the application of risk management for non-bank financial services institutions. OJK requested responses until August 31, 2019. The regulation shall come into force on the date of promulgation. The draft regulation includes chapters on scope of risk management, supervision of Board of Directors, policies and procedures of risk management, risk monitoring, reporting, and penalty.
Non-bank financial services institutions are required to submit a quarterly risk profile report to OJK in March, June, September, and December. Risk profile reports shall be submitted no later than 15 working days after the end of the reporting month. If needed, OJK may request the institution to submit a risk profile report beyond the stipulated time period. Provisions regarding the format and procedures for submitting a risk profile report shall be determined by OJK.
A non-bank financial services institution is required to be able to manage risks that can cause disruption of business sustainability. Through the application of risk management, a non-bank financial services institution is expected to be able to better identify, measure, control, and monitor the risks faced in carrying out its business activities.
Related Links (in Indonesian)
Comment Due Date: August 31, 2019
Effective Date: Date of Promulgation
Keywords: Asia Pacific, Insurance, Indonesia, Banking, Risk Management, Reporting, Non-Bank Financial Institutions, Credit Risk, Operational Risk, OJK
Previous Article
FCA Proposes Ban on Sale of Crypto-Derivatives to Retail ConsumersRelated Articles
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB Publishes Overview of Resolution Tools Available in Banking Union
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting