Investor Presentaiton
Further Stimuli to Provide Liquidity and Capital in Banking Industry
BHINNEKA
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)
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 percent
i. The deferment 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.
Relaxation for Rural and Rural Sharia Banks
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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