trending Market Intelligence /marketintelligence/en/news-insights/trending/kujb5tnac_4mcbqjnzeezg2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Indonesian regulator sets additional capital requirements for large banks

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

Indonesian regulator sets additional capital requirements for large banks

Indonesia's Financial Services Authority, or OJK, has ordered the country's systemically important banks to create a Tier 1 capital surcharge .of between 1% and 3.5% of risk-weighted assets, depending on the size and viewed riskiness of the bank, Bloomberg News reported March 27, citing a statement from the authority

The regulator asked the lenders to meet the additional capital requirement by Jan. 1, 2019.

Heru Kristiyana, OJK's banking commissioner, said the banks are allowed to adopt any avenue — including raising fresh capital — to meet the requirements.

The country's systemically important banks were classified into five categories when the size of the new capital surcharge was decided. As part of efforts to improve loss absorption and protect banks and stakeholders against failures, the regulator is considering working with Bank Indonesia to revise the classification of lenders in March and September every year based on their performance.