OJK Publishes Regulatory Updates for Financial Sector Entities
The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA) to enhance the regulatory and supervisory capacity and develop the financial services sector. Additionally, OJK issued regulations on the "assessment of the soundness of rural banks and Sharia rural banks" (POJK Number 3/POJK.03/2022) and on the "Credit Information Management Institutions" (POJK Number 5/POJK.03/2022). Both the regulations came into effect in March 2022.
Regulation on assessment of soundness of rural banks and Sharia rural banks has been issued to encourage increased risk management and governance implementation for the rural banking and Sharia rural banking sector. The assessment of the level of health is carried out by rural banks and Sharia rural banks at least on a semi-annual basis and will take effect from the December 2022 report for the trial phase and the imposition of sanctions will become effective as of the December 2023 report.
Regulation on credit information management institutions (LPIP) has been issued to encourage credit distribution and financial inclusion through the development of credit information. The regulation amends existing regulations on credit information management institutions (POJK Number 42/POJK.03/2019). The key amendments include the following:
- Affirmation of credit information management institution as a rating agency in the financial services sector
- Increasing the minimum paid-up capital and net capital regulation
- Product and service development of credit information management institutions
- Restrictions on access to Financial Information Service System (SLIK) data for credit information management institutions
- Implementation of governance in credit information management institutions
Related Links (in Indonesian)
- Press Release on Cooperation with APRA and JFSA
- Press Release on Regulations on Rural Banks and LPIP
- Regulation on Soundness of Rural Banks
- Regulation on Credit Information Management Institutions
Keywords: Asia Pacific, Indonesia, Banking, Rural Banks, Credit Rating Agency, Credit Risk, Australia, Japan, Regulatory Capital, APRA, JFSA, OJK, Islamic Banking
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