Rabu, September 20, 2023

OJK Introduces New Regulation on the Strengthening of Commercial Bank Governance

The Chief Executive of Banking Supervision at the Financial Services Authority (Otoritas Jasa Keuangan - "OJK"), Dian Ediana Rae ("Chief Executive"), has stated that the issuance of Regulation of the OJK No. 17 of 2023 on the Application of Governance by Commercial Banks ("Regulation 17/2023") is expected to strengthen the business governance of commercial banks ("Banks") and should hopefully minimize any improper conduct that may be carried out by Banks’ controlling shareholders (Pemegang Saham Pengendali – "PSP"), as either owners or controllers of the Bank.
Furthermore, the Chief Executive has also now officially confirmed that the issuance of Regulation 17/2023 represents a follow-up to the mandate originally set under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector ("Law 4/2023"). In this regard, the Chief Executive has claimed that the governance described under Regulation 17/2023 is in line with various international standards, including: 1) The Basel Committee on Banking Services (BCBS); 2) The Organization for Economic Cooperation and Development (OECD); and 3) The International Finance Corporation (IFC).
One of the most important aspects of Regulation 17/2023 is the support that this new framework offers for the improvement of Bank management through the provision of clear-cut regulatory corridors, particularly concerning the conduct of Banks’ PSP. Overall, Regulation 17/2023 obliges Banks to implement good corporate governance in relation to various aspects, including: 1) The roles and responsibilities of Banks’ boards of directors and commissioners; 2) Internal and external audits; 3) Risk management; 4) Remuneration; and 5) Provision of large funds and funding for other parties.
For more on this story, see Hukumonline: “OJK Terbitkan Aturan Baru Soal Penguatan Tata Kelola Bank Umum”.

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The Chief Executive of Banking Supervision at the Financial Services Authority (Otoritas Jasa Keuangan - "OJK"), Dian Ediana Rae ("Chief Executive"), has stated that the issuance of Regulation of the OJK No. 17 of 2023 on the Application of Governance by Commercial Banks ("Regulation 17/2023") is expected to strengthen the business governance of commercial banks ("Banks") and should hopefully minimize any improper conduct that may be carried out by Banks’ controlling shareholders (Pemegang Saham Pengendali – "PSP"), as either owners or controllers of the Bank.
Furthermore, the Chief Executive has also now officially confirmed that the issuance of Regulation 17/2023 represents a follow-up to the mandate originally set under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector ("Law 4/2023"). In this regard, the Chief Executive has claimed that the governance described under Regulation 17/2023 is in line with various international standards, including: 1) The Basel Committee on Banking Services (BCBS); 2) The Organization for Economic Cooperation and Development (OECD); and 3) The International Finance Corporation (IFC).
One of the most important aspects of Regulation 17/2023 is the support that this new framework offers for the improvement of Bank management through the provision of clear-cut regulatory corridors, particularly concerning the conduct of Banks’ PSP. Overall, Regulation 17/2023 obliges Banks to implement good corporate governance in relation to various aspects, including: 1) The roles and responsibilities of Banks’ boards of directors and commissioners; 2) Internal and external audits; 3) Risk management; 4) Remuneration; and 5) Provision of large funds and funding for other parties.
For more on this story, see Hukumonline: “OJK Terbitkan Aturan Baru Soal Penguatan Tata Kelola Bank Umum”.

......