The Financial Services Authority of Indonesia (OJK) published an assessment of the impact of closure of Silicon Valley Bank on the banking industry, along with a regulation on products and activities of Sharia banks and Sharia business units. The regulation on products and activities of Sharia banks and Sharia business units ensures that banks should apply Sharia Principles, prudential principles, and customer protection principles while issuing new products and activities. The regulation, which sets out provisions on general requirements, risk management, product explanations, licensing, reporting, and discontinuation of new products and activities, shall come into force on the date of promulgation. Additionally, OJK is seeking comments, until April 17, 2023, on the maximum legal lending limits for rural banks (or BPRs) and the maximum limits for distribution of funds for Sharia rural banks (or BPRS).
Related Links (in Indonesian)
- Press Release on Indonesian Banking Industry
- Press Release on Closure of Silicon Valley Bank
- Regulation on Products and Activities of Sharia Banks
- Consultation on Limits for Rural and Sharia Banks
Keywords: Asia Pacific, Indonesia, Banking, Lending, Operational Resilience, Stress Testing, Islamic Banking, Credit Risk, Basel, Rural Banks, Capital Adequacy Ratio, Liquidity Risk, ALM, OJK
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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