Rabu, Agustus 28, 2024

Framework on the Transparency and Publication of the Prime-Lending Rate for Banks Finally Introduced

The Head of the Financial Literacy, Inclusion and Communication Department at the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), Aman Santosa ("Department Head"), has affirmed that the OJK has finally introduced a framework that specifically addresses the transparency and publication of the Prime-Lending Rate (Suku Bunga Dasar Kredit – "SBDK") for application by conventional commercial banks (Bank Umum Konvensional – "BUK") through Regulation No. 13 of 2024 ("Regulation 13/2024"), which came into force on 12 August 2024.
According to the Department Head, the introduction of Regulation 13/2024 is a follow-up to the mandate introduced under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, which requires BUK to disclose their interest rates for the cost of funds, margins and overhead costs, which may ultimately promote further efficiency in terms of determinations of banking interest rates.
In essence, Regulation 13/2024 broadly addresses SBDK that serve as an indication for the lowest effective interest rate and that reflect the principal price of funds for credit (Harga Pokok Dana untuk Kredit/HPDK), overhead costs and margins. In addition to including the above-described SBDK components, the format for SBDK disclosures may also include SBDK that applies to micro-, small- and medium-scale enterprises (Usaha Mikro Kecil Menengah/UMKM).
When drafting SBDK, BUK are required to take account of government-determined reference interest rates and relevant economic conditions. Moreover, Banks are also required to notify consumers of any changes that are made to interest rates or conversions from flat to effective rates in offering letters.
Ultimately, detailed SBDK reports must be submitted to the OJK by the 15^th day of each month based on the final positions for the end of the previous month. This obligation will come into effect for the October 2024 financial data positions. Moreover, any failure to comply with this obligation may result in the imposition of administrative fines of up to Rp. 15 billion. _(ANT)

......

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

The Head of the Financial Literacy, Inclusion and Communication Department at the Financial Services Authority (Otoritas Jasa Keuangan – "OJK"), Aman Santosa ("Department Head"), has affirmed that the OJK has finally introduced a framework that specifically addresses the transparency and publication of the Prime-Lending Rate (Suku Bunga Dasar Kredit – "SBDK") for application by conventional commercial banks (Bank Umum Konvensional – "BUK") through Regulation No. 13 of 2024 ("Regulation 13/2024"), which came into force on 12 August 2024.
According to the Department Head, the introduction of Regulation 13/2024 is a follow-up to the mandate introduced under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, which requires BUK to disclose their interest rates for the cost of funds, margins and overhead costs, which may ultimately promote further efficiency in terms of determinations of banking interest rates.
In essence, Regulation 13/2024 broadly addresses SBDK that serve as an indication for the lowest effective interest rate and that reflect the principal price of funds for credit (Harga Pokok Dana untuk Kredit/HPDK), overhead costs and margins. In addition to including the above-described SBDK components, the format for SBDK disclosures may also include SBDK that applies to micro-, small- and medium-scale enterprises (Usaha Mikro Kecil Menengah/UMKM).
When drafting SBDK, BUK are required to take account of government-determined reference interest rates and relevant economic conditions. Moreover, Banks are also required to notify consumers of any changes that are made to interest rates or conversions from flat to effective rates in offering letters.
Ultimately, detailed SBDK reports must be submitted to the OJK by the 15^th day of each month based on the final positions for the end of the previous month. This obligation will come into effect for the October 2024 financial data positions. Moreover, any failure to comply with this obligation may result in the imposition of administrative fines of up to Rp. 15 billion. _(ANT)

......