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
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.
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).
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.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
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.
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.
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.
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.
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.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.