- The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") is planning to issue a regulation that will specifically address the transparency and publication of the Prime-Lending Rate (Suku Bunga Dasar Kredit – "SBDK") for application by conventional commercial banks. The Chief Executive of OJK Banking Supervision ("Chief Executive"), Dian Ediana Rae, has issued a statement affirming that the new regulation will be issued shortly after a harmonization process with the Ministry of Law and Human Rights has first been completed.
- Mr. Rae has also stated that the forthcoming regulatory framework should encourage greater information transparency in terms of credit interest rates. As such, banks will be required to submit SBDK publication reports containing data and information on overhead costs, profit margins and so on.
- The hope is that this new framework will result in healthier competition between banks, as well as more efficient market mechanisms. Meanwhile, customers will also be able to improve their knowledge of this area and can easily compare different interest rates between banks.
- The new policy on SBDK transparency is expected to contribute to efforts to control the Net Interest Margins ("NIM") of banks. The banking industry NIM, as of January 2024, stood at 4.54%, which is slightly better than the 4.81% NIM that was posted for December 2023 and the 4.83% NIM for November 2023. (ANT)
......
Subscribe to read more legal analysis.
Hukumonline Pro Intelligence
Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda
*Syarat dan ketentuan berlaku
Ada Pertanyaan? Hubungi Kami 
Professional Solutions
University Solutions
Pro
My Workspace
Pro AI
Terfavorit
Allex QnA
Pro Compliance
