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Deadline closing in, 37 banks yet to meet minimum core capital

06 September 2022 06:58

JAKARTA. The Financial Services Authority (OJK) data listed 37 banks that have not yet met the minimum core capital requirement of IDR 3 trillion despite the nearing deadline at the end of this year. OJK also planned not to extend said deadline.

Dian Ediana Rae, Executive Head of Bank Supervision of OJK, revealed that most of said 37 banks are currently under consolidation process to meet the minimum core capital of IDR 3 trillion. Said banks in question consist of 24 conventional banks and 13 rural banks.

According to Rae, some of the banks that are under consolidation process aim to pull in foreign investors to participate in the banking sector. Therefore, she will ensure that OJK will not extend the deadline of the core capital fulfilment, thus encouraging these banks to complete their consolidation immediately. “We will continue to monitor, not backing down from the IDR 3 trillion target,” she stated during the press conference in Menara Radius Prawiro, Jakarta, yesterday (5/9).

The new capital core requirement is mandated by OJK to reinforce the whole banking industry and, in the end, the economy in general. In the OJK Regulation No.12/2020, the core capital requirement rises gradually from IDR 1 trillion in 2020, IDR 2 trillion in 2021, and lastly, IDR 3 trillion in 2022. (AM/ZH)

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