OJK Proposes to Amend Capital Adequacy Rules for Banks
The Financial Services Authority of Indonesia (OJK) is seeking comments, until September 16, 2022, on the draft regulation that amends the regulation on minimum capital adequacy requirement for commercial banks. OJK also sought comments, until September 06, 2022, on the draft regulation on the licensing and capital change provisions that relate to the Sharia People's Financing Banks (RPOJK BPRS). Post finalization, both draft regulations are expected to come into force on the data of promulgation.
In the draft amendments to capital adequacy requirements. OJK specifies that, in line with the Basel III reforms, it is necessary to make improvements to the provisions on the minimum capital adequacy requirement for commercial banks. The key amendments include changes to the provisions of articles related to establishing capital conservation buffer, countercyclical buffer, capital surcharge for systemic banks, and "CAR calculation reports." The amendments also relate to the addition of provisions for calculating risk-weighted assets for market risk, addition of a chapter on capital calculations for transactions on the central counterparty institutions and margin requirements, and the deletion of certain articles.
Related Links (in Indonesian)
- Notification on Amendments to Capital Adequacy Requirements
- Draft Amendments to Capital Adequacy Requirements (DOCX)
- Notification on Regulation on Sharia People's Financing Bank
- Draft Regulation on Sharia People's Financing Bank (DOCX)
Keywords: Asia Pacific, Indonesia, Banking, Regulatory Capital, Capital Adequacy, Basel, Market Risk, Reporting, Islamic Finance, Islamic Banking, OJK
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