OJK Regulation No. 20 of 2025 on Liquidity Coverage Ratio and Net Stable Funding Ratio Requirements for Islamic Commercial Banks and Islamic Business Units

Regulation / Regulation Search / Requirement to Fulfill Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for Islamic Commercial Banks and Islamic Business Units

Sector: Banking

Sub-Sector: Islamic Banking

Regulation Type: OJK Regulation

Regulation Number: 20 of 2025

Effective Date: 9/17/2025

Attachment 1 POJK 20 of 2025 Requirement to Fulfill Liquidity Coverage Ratio and Net Stable Funding Ratio for Islamic Commercial Banks and UUS.pdf Abstract of POJK 20 of 2025 Requirement to Fulfill Liquidity Coverage Ratio and Net Stable Funding Ratio for Islamic Commercial Banks and UUS.pdf FAQ of POJK 20 of 2025 Requirement to Fulfill Liquidity Coverage Ratio and Net Stable Funding Ratio for Islamic Commercial Banks and UUS.pdf

Page Content

Financial Services Authority Regulation Number 20 of 2025 concerning the Requirement to Fulfill Liquidity Coverage Ratio (Liquidity Coverage Ratio) and Net Stable Funding Ratio (Net Stable Funding Ratio) for Islamic Commercial Banks and Islamic Business Units.

Abstract: The formulation of this POJK is driven by the need to strengthen liquidity in Islamic Banking in accordance with a liquidity risk measurement framework that aligns with international standards. These provisions are also part of the implementation of the roadmap for the development and strengthening of Islamic banking, which includes strengthening the structure and resilience of the Islamic banking industry, as well as strengthening the regulation, licensing, and supervision of Islamic banking. This POJK regulates short-term liquidity measurement through the Liquidity Coverage Ratio (LCR) and long-term funding stability through the Net Stable Funding Ratio (NSFR).

The legal basis for this POJK is: Law No. 21 of 2008 and Law No. 21 of 2011 as amended by Law No. 4 of 2023.

This POJK regulates the obligation to fulfill LCR and NSFR, LCR and NSFR components, obligations related to the Internal Liquidity Adequacy Assessment Process (ILAAP), guidelines for calculating LCR and NSFR, reporting and publication procedures, and sanctions.

Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) are required to calculate and report LCR monthly for the first time for the reporting position of January 31, 2026; calculate LCR daily for the first time for the position of June 1, 2026; and publish the first quarterly LCR calculation for the reporting position of September 2026.

Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) are required to monitor NSFR monthly for the first time for the reporting position of January 31, 2026; submit NSFR worksheets and reports for the end-of-quarter position for the first time for the end of September 2026; and publish and disclose NSFR reports for the end-of-quarter position for the first time for the end of September 2026.

Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) are required to meet a minimum LCR of 80% by June 30, 2026; 90% by June 30, 2027; and 100% by June 30, 2028.

Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) are required to meet a minimum NSFR of 80% by December 31, 2026; 90% by December 31, 2027; and 100% by December 31, 2028.

The OJK may set different LCR and/or NSFR requirements based on specific considerations.

In the event that Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) do not meet the LCR and NSFR requirements as stipulated, they are obligated to report to the OJK and take necessary steps in accordance with the regulations.

Notes: This POJK takes effect on the date of promulgation. This POJK was promulgated on September 17, 2025, and established on September 12, 2025.