Inflation Control and Financial Facilities Strategy
Further Stimuli to Provide Liquidity and Capital in Banking
Industry
Relaxation for Conventional and Sharia
Banks
(Reporting/Treatment/Governance of
Restructured Credit/Financing)
Adjustment of Banking Provisions
Implementation during Relaxation Period
Deferral of Basel III Reforms
Implementation (valid until 31 December
2022)
Relaxation for Rural and Rural Sharia Banks
Restructured credit/financing is excluded from the Loan at Risk (LAR) in the
assessment of banks performance. Banks are also allowed to approve credit
restructuring with several alternative governance by considering the necessary
principle.
i. Eliminating the obligation to fulfill Capital Conservation Buffer by 2.5
percent of Risk Weighted Assets (ATMR) for BUKU 3 and BUKU 4 banks
(until 31 March 2021)
ii. Maintaining the obligation of fulfilling Liquidity Coverage Ratio (LCR) and
Net Stable Funding Ratio (NSFR) for BUKU 3, BUKU 4, and foreign banks
at a minimum level of 85 percent (until 31 March 2021)
iii. Dismissing the quality assessment of Foreclosed Collateral (AYDA) based
on the period of ownership (until 31 March 2021)
iv. Reducing the obligation of education funds provision to less than 5
i. Precede ferment reforms include Risk-Weighted Assets (RWA) for operational
risk, credit risk, market risk, and Credit Valuation Adjustment (CVA)
ii. Until then, the Capital Adequacy Requirement still refers to the current
RWA standard.
i. Relaxing the General Loan Loss Provision (PPAP) to less than 0.5%
ii. Exemption of Interbank Placement for Legal Lending Limit (BPMK) and
Maximum Limit of Fund Channeling (BPMD) to a maximum 30% of capital
iii. Temporary Halt on Foreclosed Collateral (AYDA) calculation based on
period of ownership
iv. Providing 5% less on Education, Training, and Human Resource Fund from
the previous year
Source: Financial Service Authority (OJK)
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