Senin, Juli 18, 2022

KPEI Sets Criteria for Placement of Bank Guarantee Collateral

In an effort to implement risk control in relation to guarantees for the settlement of stock exchange transactions and as a follow-up to the issuance of the Decree of the Board of Directors of the Indonesian Securities Clearing and Guarantee Corporation (Kliring Penjaminan Efek Indonesia – “KPEI”) No. Kep-016/DIR/KPEI/0718 regarding KPEI Regulation No. II-12 of 2018 on the Placement of Collateral for Equity Securities Exchange Transactions and Investment Product Participation Units in the Form of Collective Investment Contracts and Securities Lending and Borrowing, the KPEI has now issued Circular of the KPEI Board of Directors No. SE-005/DIR/KPEI/0622 on the Deposit of Bank Guarantee Collateral (“Circular 5/2022”).
According to Circular 5/2022, in order to comply with the Principles for Financial Market Infrastructure (PFMI), bank guarantees that are deposited by clearing members as collateral must meet the following criteria: 1) Any bank that issues a bank guarantee must be in Bank Group Based on Core Capital (Kelompok Bank berdasarkan Modal Inti – “KBMI”) 2, KBMI 3 or KBMI 4 for banks that are Indonesian legal entities (Bank berbadan Hukum Indonesia/BHI), branch offices of banks domiciled overseas (Kantor Cabang dari Bank yang berkedudukan di Luar Negeri/KCBLN), sharia commercial banks and sharia business units, as addressed under Regulation of the Financial Services Authority on Commercial Banks; 2) Any bank that issues bank guarantees must have no affiliation with any clearing member who deposits a bank guarantee as collateral; 3) Bank guarantees are required to include a stipulation that states that said bank guarantees can be disbursed within five trading days of any receipt of a claim for reimbursement that is sent by the KPEI; 4) The total value of bank guarantees that can be received as collateral is set at a maximum of Rp. 100 billion per clearing member.
Bank guarantees that are currently deposited as collateral with the KPEI and that do not meet the above criteria will still be classified as collateral until the maturity dates of said bank guarantees.
Circular 5/2022 comes into force on 5 August 2022.

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In an effort to implement risk control in relation to guarantees for the settlement of stock exchange transactions and as a follow-up to the issuance of the Decree of the Board of Directors of the Indonesian Securities Clearing and Guarantee Corporation (Kliring Penjaminan Efek Indonesia – “KPEI”) No. Kep-016/DIR/KPEI/0718 regarding KPEI Regulation No. II-12 of 2018 on the Placement of Collateral for Equity Securities Exchange Transactions and Investment Product Participation Units in the Form of Collective Investment Contracts and Securities Lending and Borrowing, the KPEI has now issued Circular of the KPEI Board of Directors No. SE-005/DIR/KPEI/0622 on the Deposit of Bank Guarantee Collateral (“Circular 5/2022”).
According to Circular 5/2022, in order to comply with the Principles for Financial Market Infrastructure (PFMI), bank guarantees that are deposited by clearing members as collateral must meet the following criteria: 1) Any bank that issues a bank guarantee must be in Bank Group Based on Core Capital (Kelompok Bank berdasarkan Modal Inti – “KBMI”) 2, KBMI 3 or KBMI 4 for banks that are Indonesian legal entities (Bank berbadan Hukum Indonesia/BHI), branch offices of banks domiciled overseas (Kantor Cabang dari Bank yang berkedudukan di Luar Negeri/KCBLN), sharia commercial banks and sharia business units, as addressed under Regulation of the Financial Services Authority on Commercial Banks; 2) Any bank that issues bank guarantees must have no affiliation with any clearing member who deposits a bank guarantee as collateral; 3) Bank guarantees are required to include a stipulation that states that said bank guarantees can be disbursed within five trading days of any receipt of a claim for reimbursement that is sent by the KPEI; 4) The total value of bank guarantees that can be received as collateral is set at a maximum of Rp. 100 billion per clearing member.
Bank guarantees that are currently deposited as collateral with the KPEI and that do not meet the above criteria will still be classified as collateral until the maturity dates of said bank guarantees.
Circular 5/2022 comes into force on 5 August 2022.

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