OJK announced that it has developed, in association with the Governance, Risk, and Compliance (GRC) Forum Indonesia, a handbook that contains principles, framework, maturity models, and assessment tools to facilitate the implementation of integrated GRC. OJK expects financial service actors to continue to improve the implementation of GRC to be able to detect and anticipate emerging risks such as cyber risk, cloud security risk, climate change risk, and risks associated with the COVID-19 pandemic. Additionally, OJK published a statement on the financial stability status of the country amid the COVID-19 pandemic. The Financial System Stability Committee (KSSK) of OJK, at its July 2020 meeting, concluded that the financial services sector has maintained stability in the second quarter of 2020 amid COVID-19 pandemic.
The OJK statement highlights that, in June, the capital adequacy ratio for conventional commercial banks was at 22.59%. Liquidity adequacy was also well-maintained, as reflected in the Liquid Assets to Non Core Deposits (AL/NCD) ratio of 122.57% as of July 15, 2020 and in the Liquid Assets to Third Party Funds (LA/TPF) ratio of 26.02%, which are well above their respective thresholds of 50% and 10%. However, increased vigilance is required to be maintained to address the impact of the pandemic. OJK will continue to optimize the policies that have been issued to encourage national economic recovery by strengthening the role of the financial services sector. During the pandemic, OJK has issued various stimulus policies for the banking industry, capital markets, and non-bank financial industry, in line with the efforts of the government to promote national economic recovery. OJK also supports the government program in issuing a credit guarantee scheme for micro, small, and medium enterprises (MSMEs) and corporations as well as a program for placing government funds into the banking industry to support lending to MSMEs. OJK will continue to monitor developments in the financial sector and be ready to take the necessary policy measures to maintain stability and enhance the role of the financial services sector.
Related Links (in Indonesian)
- Press Release on GRC
- Press Release on Financial Stability Amid COVID-19
- Press Release on KSSK Meeting
Keywords: Asia Pacific, Indonesia, Banking, COVID-19, Governance, ESG, Credit Risk, SME, Cyber Risk, Cloud Computing, Loan Guarantee, Operational Risk, Basel, OJK
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