Senin, Agustus 1, 2022

OJK Sets Guidelines for BPR and BPRS Soundness Level Assessments

The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has issued Circular No. 11/SEOJK.03/2022 ("Circular 11/2022") on Soundness Level Assessments (“Assessments”) for Rural Banks (Bank Perkreditan Rakyat – "BPR") and Sharia BPR (Bank Perkreditan Rakyat Syariah – "BPRS"), which will now serve as an implementation of Regulation of the OJK No. 3/POJK.03/2022 and which contains a set of guidelines on BPR and BPRS Assessments.
In essence, Assessments should be implemented through a risk-based approach in accordance with the following principles: 1) Risk level; 2) Proportionality; 3) Significance and materiality; and 4) Comprehensiveness and structure. In this regard, Assessments should take the following factors into account: 1) Risk profile; 2) Governance; 3) Rentability; and 4) Capital. Details relating to these matters are comprehensively elaborated upon under the Appendix to Circular 11/2022.
In terms of the above-listed principles and factors, Assessments should be carried out in the following phases: 1) Determination of factor and component rankings; 2) Determination of BPR and BPRS soundness level composite rankings; and 3) Updating of Assessments. Moreover, BPR and BPRS are required to submit action plans in the event that Assessments (as carried out by the OJK and/or through self-Assessments) result in any of the following outcomes: 1) The relevant BPS/BPRS governance and/or risk-profile factor is determined at rank four and/or rank five; 2) The relevant BPS/BPRS soundness level composite ranking is determined at rank four; and/or 3) The relevant BPS/BPRS soundness level composite ranking is determined at rank four or rank five but is potentially determined as under intensive supervision or as being associated with a significant issue that needs to be handled.
BPR and BPRS must submit reports (as approved by their boards of directors and commissioners) on their self-Assessments to the OJK in line with the following deadlines: 1) 31 July for Assessments of the position at the end of June; and 2) 31 January for Assessments of the position at the end of December. Said reporting should be carried out for the first time for the position at the end of December 2022.
Circular 11/2022 has been in force since 18 July 2022.

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The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has issued Circular No. 11/SEOJK.03/2022 ("Circular 11/2022") on Soundness Level Assessments (“Assessments”) for Rural Banks (Bank Perkreditan Rakyat – "BPR") and Sharia BPR (Bank Perkreditan Rakyat Syariah – "BPRS"), which will now serve as an implementation of Regulation of the OJK No. 3/POJK.03/2022 and which contains a set of guidelines on BPR and BPRS Assessments.
In essence, Assessments should be implemented through a risk-based approach in accordance with the following principles: 1) Risk level; 2) Proportionality; 3) Significance and materiality; and 4) Comprehensiveness and structure. In this regard, Assessments should take the following factors into account: 1) Risk profile; 2) Governance; 3) Rentability; and 4) Capital. Details relating to these matters are comprehensively elaborated upon under the Appendix to Circular 11/2022.
In terms of the above-listed principles and factors, Assessments should be carried out in the following phases: 1) Determination of factor and component rankings; 2) Determination of BPR and BPRS soundness level composite rankings; and 3) Updating of Assessments. Moreover, BPR and BPRS are required to submit action plans in the event that Assessments (as carried out by the OJK and/or through self-Assessments) result in any of the following outcomes: 1) The relevant BPS/BPRS governance and/or risk-profile factor is determined at rank four and/or rank five; 2) The relevant BPS/BPRS soundness level composite ranking is determined at rank four; and/or 3) The relevant BPS/BPRS soundness level composite ranking is determined at rank four or rank five but is potentially determined as under intensive supervision or as being associated with a significant issue that needs to be handled.
BPR and BPRS must submit reports (as approved by their boards of directors and commissioners) on their self-Assessments to the OJK in line with the following deadlines: 1) 31 July for Assessments of the position at the end of June; and 2) 31 January for Assessments of the position at the end of December. Said reporting should be carried out for the first time for the position at the end of December 2022.
Circular 11/2022 has been in force since 18 July 2022.

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