Kamis, Januari 12, 2023

OJK Re-Amends Provisions on the Adjustment of Bank Capital Calculations

The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has issued Regulation of the OJK No. 27 of 2022 on the Second Amendment to Regulation of the OJK No. 11/POJK.03/2016 on Mandatory Minimum Capital Requirements for Commercial Banks ("Second Amendment"), which has been in force since 28 December 2022.
The Second Amendment makes a number of adjustments concerning calculations of banking capital which is more sensitive to risk by strengthening it from a risk management perspective in line with international standards, specifically Basel III: Finalizing Post-Crisis Reforms (Basel III Reforms).
The OJK’s Director of Public Relation, Darmansyah, has explained that several of the changes that have been introduced under the Second Amendment specifically address technical adjustments for Calculations of Risk-Weighted Assets (Aset Tertimbang Menurut Risiko – "ATMR"), which are further regulated under relevant Circulars of the OJK.
In order to support the deepening of the financial market through the optimization of the functions and roles of central counterparty institutions, the Second Amendment mandates that banks should apply international standards in the form of capital requirements for bank exposures to central counterparties and margin requirements for non-centrally cleared derivatives.
Aside from the adjustments that have been made to the standard Basel III Reforms, the main provisions set out under the Second Amendment encompass the obligation for all banks to calculate ATMR commencing 1 January 2024.
Furthermore, the Second Amendment also deals with the regulatory framework that addresses the obligation to calculate capital for bank exposure to central counterparties and the provision of margins for derivative transactions that are not carried out through central counterparties, as well as alignment with other Regulations of the OJK, such as the obligation to report Mandatory Minimum Capital Requirements (Kewajiban Penyediaan Modal Minimum/KPMM) through the OJK’s reporting system.
For more on this story, see Hukumonline.com: “OJK Terbitkan Aturan Baru untuk Sesuaikan Hitungan Permodalan Bank”.

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The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has issued Regulation of the OJK No. 27 of 2022 on the Second Amendment to Regulation of the OJK No. 11/POJK.03/2016 on Mandatory Minimum Capital Requirements for Commercial Banks ("Second Amendment"), which has been in force since 28 December 2022.
The Second Amendment makes a number of adjustments concerning calculations of banking capital which is more sensitive to risk by strengthening it from a risk management perspective in line with international standards, specifically Basel III: Finalizing Post-Crisis Reforms (Basel III Reforms).
The OJK’s Director of Public Relation, Darmansyah, has explained that several of the changes that have been introduced under the Second Amendment specifically address technical adjustments for Calculations of Risk-Weighted Assets (Aset Tertimbang Menurut Risiko – "ATMR"), which are further regulated under relevant Circulars of the OJK.
In order to support the deepening of the financial market through the optimization of the functions and roles of central counterparty institutions, the Second Amendment mandates that banks should apply international standards in the form of capital requirements for bank exposures to central counterparties and margin requirements for non-centrally cleared derivatives.
Aside from the adjustments that have been made to the standard Basel III Reforms, the main provisions set out under the Second Amendment encompass the obligation for all banks to calculate ATMR commencing 1 January 2024.
Furthermore, the Second Amendment also deals with the regulatory framework that addresses the obligation to calculate capital for bank exposure to central counterparties and the provision of margins for derivative transactions that are not carried out through central counterparties, as well as alignment with other Regulations of the OJK, such as the obligation to report Mandatory Minimum Capital Requirements (Kewajiban Penyediaan Modal Minimum/KPMM) through the OJK’s reporting system.
For more on this story, see Hukumonline.com: “OJK Terbitkan Aturan Baru untuk Sesuaikan Hitungan Permodalan Bank”.

......