Regulatory AlertsOJK Regulation No. 20 of 2025 on Liquidity Coverage Ratio and Net Stable Funding Ratio Requirements for Islamic Commercial Banks and Islamic Business Units
The Financial Services Authority (OJK) issued Regulation No. 20 of 2025 to strengthen liquidity risk management in Islamic banking by mandating compliance with the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). The regulation establishes a phased implementation schedule requiring Islamic Commercial Banks and Islamic Business Units to achieve minimum LCR and NSFR thresholds of 100% by June and December 2028, respectively. It further defines calculation methodologies, reporting obligations, internal assessment processes, and sanctions for non-compliance to align with international standards.
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