Good Corporate Governance for Rural Banks

The Financial Services Authority (OJK) has issued Regulation No. 4/POJK.03/2015 on Good Corporate Governance for Rural Banks (“Regulation”). The stated aim of the Regulation is to improve the performance of rural banks (bank perkreditan rakyat), protect the interests of stakeholders in rural banks, and improve the regulatory compliance of rural banks.[1]

To that end, the Regulation sets out guidelines for rural banks to implement mandatory good governance principles, including transparency, accountability, responsibility, independency, and fairness.[2]