Regulation on Minimum Disclosed Reserves for Banks - Amended

Bank Indonesia (BI) has amended Regulation No. 7/15/PBI/2005 with Regulation No. 9/16/PBI/2007 to clarify the rules of the game for banks that are yet to meet minimum disclosed reserves targets as mandated under the earlier regulation. The amendments are also designed to facilitate BI responses to issues of good corporate governance and obligations under the Basel Accord II. In essence this will require that BI provide a mechanism for banks unable to meet the requirements to continue operations. This is to be done by reclassifying these banks as Rural Credit Banks (Bank Perkreditan Rakyat / BPR).