OJK Launches Blueprint for Digital Transformation of Banking Sector
The Financial Services Authority of Indonesia (OJK) announced the strengthening of cooperation with the Dubai Financial Services Authority (Dubai FSA) in the areas of Islamic finance, sustainable finance, fintech, cybersecurity, and technology-based supervision. As another development, OJK launched the "Digital Banking Transformation Blueprint" to accelerate the digital transformation of the banking sector in Indonesia.
The Blueprint on digital transformation of banking sector is focused on the following elements:
- Data protection, data transfer, and data governance
- Information technology governance, information technology architecture, and information technology adoption principles
- Information technology risk management, including outsourcing arrangements and cyber-security of commercials banks
- Collaborations, including data-sharing platforms and bank collaborations in the digital ecosystem
- Institutional arrangements, including funding support, leadership, organizational design, human resource talent, and culture
The aforementioned elements represent strategic steps to encourage banks to create financial product and service innovations that can meet consumer expectations and are consumer-oriented. OJK has prepared the Blueprint after considering various aspects such as studies on the future of banking, conditions of digitalization in banking, international standards, best practices in the banking industry, stakeholder inputs, and harmonization with the policies or regulations of relevant authorities. This Blueprint is principles-based (provides rules in the form of guiding principles), takes facilitative approach, and will continue to be updated to accommodate various developments in the banking sector.
Related Links (in Indonesian)
- Press Release on Strengthening Cooperation with DFSA
- Press Release on Digital Transformation Blueprint
Keywords: Asia Pacific, Indonesia, Banking, UAE, Dubai, Islamic Finance, Sustainable Finance, Fintech, Regtech, Cyber Risk, Outsourcing Risk, Dubai FSA, OJK
Previous Article
HKMA Announces Sustainable Finance Initiative at COP26Related Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
