All Commercial Banks Now Required to Submit Recovery Plans to the OJK

As mandated under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, in order to prevent bank failures that may ultimately have a disruptive effect upon the financial system, while maintaining the overall stability of the banking industry, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation of the OJK No. 5 of 2024 on the Determination of Supervision Statuses and the Handling of General Banking Issues (“Regulation 5/2024”), which has been in force since 27 March 2024.[1]

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