Regulatory AlertsAmendment to Financial Services Authority Regulation Number 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks
The Indonesian Financial Services Authority (OJK) issued Regulation Number 20 of 2024 to amend the Net Stable Funding Ratio (NSFR) requirements for commercial banks in alignment with Basel Committee on Banking Supervision standards and updated financial accounting standards. This regulation expands the scope of NSFR monitoring, calculation, and reporting obligations to include all conventional commercial banks, specifically incorporating those in the Core Capital Group 1 category that were previously exempt. The regulation mandates that these banks first report their NSFR positions for the end of December 2024, with the regulation officially taking effect on November 8, 2024.
Regulation /
Regulation Search / Amendment to Financial Services Authority Regulation Number 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks
Sector: Banking
Sub-Sector: Commercial Banks; Other Regulations
Regulation Type: Financial Services Authority Regulation
Regulation Number: 20 of 2024
Effective Date: 11/8/2024
Attachment 1 POJK 20 of 2024 Amendment to POJK 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks.pdf Abstract of POJK 20 of 2024 Amendment to POJK 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks.pdf FAQ of POJK 20 of 2024 Amendment to POJK 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks.pdf
Page Content Financial Services Authority of the Republic of Indonesia Regulation Number 20 of 2024 on Amendment to Financial Services Authority Regulation Number 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks
Abstract: The preparation of the POJK regarding the Amendment to POJK Number 50/POJK.03/2017 on the Net Stable Funding Ratio Obligation for Commercial Banks (NSFR POJK) is driven by the Basel Committee on Banking Supervision (BCBS) standards and updates to financial accounting standards, necessitating adjustments to the existing NSFR regulations. The legal basis for this POJK is: Law No. 7 of 1992 as amended several times, most recently by Law No. 4 of 2023; Law No. 21 of 2011 as amended by Law No. 4 of 2023; and POJK No. 50/POJK.03/2017. There is an expansion of the scope of NSFR monitoring, calculation, and reporting obligations to apply to all Conventional Commercial Banks (CCBs), whereas previously, CCBs included in the Core Capital Group 1 (KBMI 1) category, excluding foreign banks, were not subject to NSFR regulations. This expansion is undertaken because maintaining the NSFR ratio aims to strengthen banking liquidity, requiring equivalent, reliable, and comparable data applicable to all CCBs.
Notes: This POJK takes effect on the date of promulgation, which is November 8, 2024. This POJK applies to all CCBs, including branches of banks located outside the country. This POJK regulates, among other things, the scope of banks required to report NSFR, adjustments to the scope of Impairment Loss Reserves (CKPN), and reporting procedures. The initial NSFR reporting and publication obligation for Banks included in the Core Capital Group 1 category, excluding foreign banks, is for the position at the end of December 2024. Explanation: 3 pages.