Regulatory Alerts2009-04-29
Bank Indonesia Regulation Number 11/15/PBI/2009 on Conversion of Business Activities from Conventional Bank to Sharia Bank
Bank Indonesia issued Regulation Number 11/15/PBI/2009 to establish the legal framework and requirements for conventional banks to convert their business activities into Sharia banks. The regulation mandates that applicants obtain prior approval, meet specific capital and governance standards, and establish a Sharia Supervisory Board while ensuring the settlement of existing customer rights and obligations. It further outlines the licensing procedure, requires operations to commence within 60 days, and imposes administrative sanctions for non-compliance with the transition timeline.
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