OJK Issues Regulatory Updates for Financial Sector Entities
The Financial Services Authority of Indonesia (OJK) amended a circular on the implementation of governance for Sharia rural banks. The Authority also published the draft regulations on on limits for rural banks, on the "credit information management institutions, and the “application for licensing, approval, and reporting for information technology-based co-financing service providers."
Below are the key highlights of the recent updates:
- OJK published amendments to the circular on the implementation of governance for Sharia rural banks. The key changes relate to time limit for submission and publication of the Governance Implementation Report for Sharia rural banks, duties and responsibilities of the Board of Directors, and reporting related to remuneration for the Board of Directors. The amendments came into effect on June 29, 2022.
- OJK is requesting responses to the draft regulation on “maximum limit for rural bank credit and maximum limit for distribution of funds for sharia rural bank.” To support more optimal economic growth, rural banks and Islamic people financing banks need to increase credit and financing for the real sector while considering the principles of prudence and risk management. OJK is requesting feedback until July 15, 2022.
- OJK published the draft regulation on credit information management institutions (LPIP), which was open for feedback until July 08, 2022. The draft regulation includes provisions related to the implementation of good governance, protection of stakeholders, compliance with laws and regulations, and generally accepted ethical values as well as the management and development of credit information as a product and/or service produced by credit information management institutions.
- OJK is requesting responses to the draft regulation on “application for licensing, approval, and reporting for information technology-based co-financing service providers.” The draft regulation sets out provisions on general requirements, scope of application for licenses, approval, and reporting, and procedures for submission of applications. The provisions in this draft regulation shall come into force on the date of stipulation. OJK is requesting feedback until July 29, 2022.
Related Links (in Indonesian)
- Circular on Implementation of Governance for Sharia Rural Banks
- Draft Regulation on Application for IT-Based Co-Financing Service Providers
- Draft Regulation on Limits for Rural Banks
- Draft Regulation on Credit Information Management Institutions
Keywords: Asia Pacific, Indonesia, Banking, Rural Banks, Credit Rating Agency, Credit Risk, Reporting, Governance, Islamic Banking, Regulatory Capital, OJK
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