JAKARTA – The Financial Services Authority (OJK) issues two regulations, each aimed to prevent fraud in rural banks (lit. Bank Perkreditan Rakyat/BPR) and sharia rural banks, as well as optimise credit channelling through credit information. The regulation is issued under OJK Regulation No.3 and 5/POJK.03/2022.
Anto Prabowo, Deputy Commissioner of Public Relations and Logistic of OJK, mentioned that POJK No.3 is intended to solidify the implementation of risk management and governance for rural and sharia rural banks. “The developing rural banks industry should be balanced out with the reinforced risk management so that the business will be sustained, resilient, and agile,” he added in the press release quoted Tuesday (19/4).
According to Prabowo, the well-implemented risk management and governance could hopefully reduce risks of surprising events with negative consequences, including liquidity ratio that will affect the performance of rural banks. The health level of banks will start to be evaluated every six months, starting in December 2022 Report.
Meanwhile, the POJK No.5 will regulate the Credit Information Management Institutions (lit. Lembaga Pengelolaan Informasi Perkreditan/LPIP). OJK expects a more transparent credit distribution with credit information. Furthermore, this regulation also solidifies LPIP’s position as the rating agency in the financial service sector and strengthen the implementation of LPIP’s governance. (LK/ZH)