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OJK will set the minimum capital requirement for commercial banks at Rp 3 trillion

17 January 2020 09:48

JAKARTA. The Financial Services Authority (OJK) will soon issue a regulation on the minimum capital requirement for commercial banks. The regulation stated that by 2022, banks are required to have at least Rp 3 trillion of capital. OJK will also impose sanctions on banks that cannot meet the new regulation.

Executive Head of Banking Supervision at OJK, Heru Kristiyana explained that the most severe sanction is in the form of a downgrade in the class of the bank, from commercial banks to people's credit banks (BPR).

"If banks cannot meet the provisions, there are consequences. Several consequences can happen: restrictions on banking activities, to the downgrading of class to BPR," Heru said, Thursday (16/1).

OJK will give banks time to fulfill the capital requirements gradually, starting when the regulation is issued until 2022.

The regulation issued this year will set the minimum capital requirement to Rp 1 trillion, then Rp 2 trillion in 2021 and Rp 3 trillion in 2022. (AM/AR)

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