The OJK Chairman Wimboh Santoso participated as a panelist at the 20th International Conference of Banking Supervisors (ICBS) on Navigating the Post- Basel III Banking System. He highlighted that national banks in the country are in good condition and ready to implement the continuation of Basel III standards. He also mentioned that banks are well-capitalized, with the capital adequacy ratio (CAR) reaching 23% and dominated by core capital.
Mr. Santoso explained that the implementation of Basel III would be proportional to the conditions of the national banking system. Unlike Basel I and II, which are being applied in all commercial banks, several Basel III standards are only applied to certain bank groups. He also said that BCBS must begin to pay attention to the risks that can arise from the development of fintech. He shared experiences on how Indonesia has responded to the development of fintech in the country. He added that Indonesia has set up a regulatory umbrella to mitigate potential risks, such as cyber risk, money laundering, and terrorist funding, and to promote adequate market conduct to protect consumers.
ICBS, which was attended by more than 200 participants from more than 100 countries, was held to build cooperation among the international financial sector supervisory authorities.
Related Link (in Indonesian): Press Release
Keywords: Asia Pacific, Indonesia, Banking, Basel III, CAR, Fintech, Proportionality, OJK
Previous ArticleRBI Announces Effective Date for NSFR Guidelines
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.