Regulatory AlertsImplementation of Risk Management for Islamic Commercial Banks and Islamic Business Units
The Financial Services Authority (OJK) issued Circular Letter No. 25/SEOJK.03/2023 to implement risk management standards for Islamic Commercial Banks (BUS) and Islamic Business Units (UUS), serving as an execution of POJK No. 65/POJK.03/2016. The regulation mandates the application of comprehensive risk management across ten specific risk categories, including credit, market, liquidity, and Sharia compliance risks, tailored to the bank's size and complexity. Effective January 1, 2024, this circular supersedes previous Bank Indonesia regulations and requires quarterly risk profile reporting to the OJK.
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