Financial Transparency at Syariah Community Credit Banks

Bank Indonesia (BI) in light of previous regulations governing the financial reporting of Syariah Community Credit Banks (BPRS) has issued this Regulation to explicitly stipulate the obligations and the specific requirements of the financial reports that must be submitted by BPRS. The financial transparency aspect of this Regulation relies heavily on the implementation and use of acceptable financial accounting standards and guidelines of practice.

The Regulation requires that BPRS submit both an Annual Report and a Quarterly Report. The Annual Report includes both a financial report and a Management Report. The Management Report requires the BPRS to provide detailed and accurate information regarding the management, the owner(s), business development, strategic and management policy. In contrast the Annual Financial Report will include data regarding the balance sheet, a profit and loss statement, cash flow, equity position, contingency measures, and fund sources, among several others.