Featured Product

    BI Maintains CCyB Ratio at 0% while OJK Launches Green Taxonomy

    The Financial Services Authority of Indonesia (OJK) announced that the financial system has been stable in the fourth quarter of 2021 and that the Bank Indonesia (BI) has decided to maintain the countercyclical capital buffer (CCyB) ratio at 0% and the Macro-prudential Intermediation Ratio (RIM) in the range of 84-94% with a lower limit disincentive parameter of 84% since January 01, 2022. Additionally, the Macro-prudential Liquidity Buffer (PLM) ratio has been set at 6% with the repo flexibility of 6% and the Sharia PLM ratio has been set at 4.5% with repo flexibility of 4.5%. BI will also work toward strengthening the policy of transparency of the basic lending rate (SBDK) as well as the role of micro, small and medium enterprises (MSMEs) in the national economic recovery. OJK also announced that the Indonesian President Joko Widodo launched the green taxonomy of Indonesia at the 2022 Financial Services Industry Annual Meeting.

    The green taxonomy, which has been compiled with eight "Ministries," contains a list of classifications of economic activities that support environmental protection efforts and climate change mitigation and adaptation. There are 2,733 sectors and sub-sectors that have been studied while 919 can be mapped to sub-sectors/groups/business activities. Among the 919 subsectors/groups/business activities, 904 are not yet able to be directly categorized as green sector (as there are prerequisites that must be met first) while the other 15 can be included directly in green category. For classification purposes, the criteria are divided into three categories: green (do no significant harm, apply minimum safeguard, provide positive impact to the environment, align with the environmental objective of the taxonomy), yellow (do no significant harm), and red (harmful activities). Additionally, 198 additional subsectors for further development areas were proposed by several "Ministries" and other stakeholders. At the meeting, the OJK Chairman Wimboh Santoso discussed the performance and projected growth in the financial services industry. To achieve the projected growth, OJK has set policy priorities for the year, including to prepare the financial sector for policy normalization in other countries, encourage financing to the commodity and property sectors, develop sustainable financing scheme, and strengthen digital transformation policies in the financial services sector.

     

    Related Links (in Indonesian)

     

    Keywords: Asia Pacific, Indonesia, Banking, Insurance, Securities, CCyB, Regulatory Capital, Macro Prudential Policy, Climate Change Risk, ESG, Policy Priorities, Sustainable Finance, Basel, Sustainable Taxonomy, BI, 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