- The Financial Services Authority (“OJK”) is planning to gradually increase the core-capital requirement for banks to IDR 3 trillion. This new requirement will be set out under a forthcoming Regulation of the OJK, which is planned for issue this February.
- According to the Chief Executive of Banking Supervision at the OJK, Heru Kristiyana, existing banks would be required to comply with the new minimum core-capital requirement. Otherwise, said existing banks will be forced to pursue various other options, such as the undertaking of corporate actions such as mergers and acquisitions or becoming Rural Credit Banks (“BPR”). Mr. Heru added that banks will be offered incentives to undertake mergers and acquisitions.
- In the near future, the minimum core-capital level for banks which are classified as BUKU I and II will be set at least IDR 3 trillion. Meanwhile, the minimum core-capital level for BUKU I banks is currently set at ≤ IDR 1 trillion and for BUKU II banks it is currently set at between IDR 1 trillion and IDR 5 trillion. (ANT)
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