Senin, Oktober 2, 2023

BI Introduces Framework on KLM for Banks: Incentives Now Expanded

Bank Indonesia ("BI") has decided to establish a framework on macroprudential liquidity incentive policies (Kebijakan Insentif Likuiditas Makroprudensial – "KLM") for conventional and sharia banks ("Banks") through the issuance of Regulation No. 11 of 2023 ("Regulation 11/2023"), which has been in force since 1 October 2023. Previously, BI set similar incentives for Banks under Regulation of BI No. 24/5/PBI/2022 ("Regulation 24/2022") which, upon the enforcement of Regulation 11/2023, was repealed and replaced.
At its core, Regulation 11/2023 states that BI should apply KLM to Banks that provide the following financial services to their customers: 1) Credit or financing to certain sectors, as determined by BI; 2) Inclusive credit or financing based on the relevant Inclusive Macroprudential Funding Ratio (Rasio Pembiayaan Inklusif Makroprudensial – "RPIM") performance; 3) Credit or financing to ultra-micro-scale enterprises (Usaha Ultra Mikro/UMi); 4) Credit or financing that relates to environmental matters; and/or 5) Other forms of financing as determined by BI. Under the now-replaced framework of Regulation 24/2022, Banks that offered the financial services outlined in points (3) and (4) above did not feature as parties that were previously deemed eligible to enjoy KLM.
Under Regulation 11/2023, KLM should be granted based on data and reports that address the above-described credit or financing provided by Banks. Said data and reports should be accurate and should be submitted by relevant Banks to BI. In this regard, Regulation 11/2023 states that any Banks that fail to comply with the mandate on the submission of data and reports may be subject to the imposition of administrative sanctions by BI.
It should also be noted that BI may exempt certain Banks from the above-described KLM, specifically, RPIM performance-based KLM for Banks that are not bound by the mandatory RPIM requirements.

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

Professional Solutions

University Solutions

Pro

Rp 5.000.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro AI

Terfavorit

Rp 8.200.000 /bulan

Jadwalkan Demo

Lihat Detail

Pro Compliance

New

Rp 12.500.000 /bulan

Jadwalkan Demo

Lihat Detail

*Syarat dan ketentuan berlaku

Bank Indonesia ("BI") has decided to establish a framework on macroprudential liquidity incentive policies (Kebijakan Insentif Likuiditas Makroprudensial – "KLM") for conventional and sharia banks ("Banks") through the issuance of Regulation No. 11 of 2023 ("Regulation 11/2023"), which has been in force since 1 October 2023. Previously, BI set similar incentives for Banks under Regulation of BI No. 24/5/PBI/2022 ("Regulation 24/2022") which, upon the enforcement of Regulation 11/2023, was repealed and replaced.
At its core, Regulation 11/2023 states that BI should apply KLM to Banks that provide the following financial services to their customers: 1) Credit or financing to certain sectors, as determined by BI; 2) Inclusive credit or financing based on the relevant Inclusive Macroprudential Funding Ratio (Rasio Pembiayaan Inklusif Makroprudensial – "RPIM") performance; 3) Credit or financing to ultra-micro-scale enterprises (Usaha Ultra Mikro/UMi); 4) Credit or financing that relates to environmental matters; and/or 5) Other forms of financing as determined by BI. Under the now-replaced framework of Regulation 24/2022, Banks that offered the financial services outlined in points (3) and (4) above did not feature as parties that were previously deemed eligible to enjoy KLM.
Under Regulation 11/2023, KLM should be granted based on data and reports that address the above-described credit or financing provided by Banks. Said data and reports should be accurate and should be submitted by relevant Banks to BI. In this regard, Regulation 11/2023 states that any Banks that fail to comply with the mandate on the submission of data and reports may be subject to the imposition of administrative sanctions by BI.
It should also be noted that BI may exempt certain Banks from the above-described KLM, specifically, RPIM performance-based KLM for Banks that are not bound by the mandatory RPIM requirements.

......