OJK Publishes Multiple Regulatory Updates in July 2022
The Financial Services Authority of Indonesia (OJK) published a statement on strengthening the financial services sector in Indonesia, a draft regulation on the calculation of risk-weighted assets for market risk for commercial banks, and regulations on digital banking transformation, secondary housing finance companies, and fintech peer-to-peer lending by fintech firms.
Below are the key highlights of these recent updates:
- From 2022 to 2027, the Board of Commissioners of OJK affirmed the Authority's commitment to be more proactive and collaborative toward enhancing stability and strength of the financial services sector. OJK will continue to encourage the strengthening of corporate governance principles for all financial services business players to accelerate economic recovery and to strengthen digital economy and sustainable finance segment. Attention to individual banks will become a priority, including through the implementation of an early warning system with more sensitive parameters, to avoid delays in handling troubled banks. Enforcement of the integrity of the banking system will also be a major concern as part of the efforts to improve banking performance and grow more sustainably.
- OJK is seeking feedback to the draft regulation on calculation of risk-weighted assets for market risk for commercial banks until July 29, 2022. OJK also published the draft reporting templates associated with the draft regulation on market risk.
- OJK published regulations on the implementation of information technology by commercial banks (POJK Number 11/POJK.03/2022) and amendments to the regulation on Secondary Housing Financing Companies (POJK Number 12/POJK.05/2022). The regulation on information technology is aimed to encourage the banking sector to further strengthen information security as well as aspects of human resources, processes, technology, and physical or environmental factors. The banking industry is also required to strengthen cyber-resilience and security and be more responsive in detecting and overcoming cyber-attacks. This regulation comes into force after three months from the date of promulgation on July 07, 2022.
- Finally, OJK issued regulation concerning information technology-based co-financing services (Fintech P2P Lending). This regulation encourages the growth of alternative financing as well as facilitates and improves access to funding for the public and business actors through an information technology-based funding service. This regulation is also a refinement of the regulation concerning information technology-based borrowing-lending services (POJK 77/2016).
Related Links (in Indonesian)
- Press Release on Financial Stability
- Draft Regulation and Templates on Market Risk
- Press Release on Regulation on Information Technology
- Regulation on Information Technology
- Press Release on Peer to Peer Lending
- Regulation on Peer to Peer Lending
Keywords: Asia Pacific, Indonesia, Banking, Securities, Lending, Credit Risk, Digital Banking, Regtech, Market Risk, Reporting, Basel, P2P Lending
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