2019-12-19 | 38/POJK.03/2019Added
This regulation amends the Maximum Limit for Credit Provision (BMPK) rules for commercial banks by deleting Articles 11 and 24, and significantly revising Articles 32 and 33 to establish detailed calculation methods for fund provision involving asset-backed securities and covered bonds. It introduces a new Section Nine (Articles 38A-38D) to regulate fund provision to central counterparties, defining exposure types, exclusions from borrower group classification, and specific calculation values for clearing activities. The amendment also updates guarantee requirements for government and Prime Bank guarantees, sets strict deadlines for correcting BMPK violations, and defines administrative sanctions for non-compliance, with the regulation taking effect on January 1, 2020.
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COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 38 /POJK.03/2019
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING THE MAXIMUM LIMIT FOR CREDIT PROVISION AND LARGE FUND PROVISION FOR COMMERCIAL BANKS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that the concentration of Bank's fund provision to borrowers or a group of borrowers is one of the causes of Bank business failure; b. that to avoid Bank business failure resulting from the concentration of fund provision, Banks need to regulate fund provision in accordance with the principle of prudence;
c. that there is a need to improve regulations in accordance with international standards, so that the Financial Services Authority Regulation regarding the maximum limit for credit provision and large fund provision for commercial banks needs to be amended;
d. that based on considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Amendment to the Financial Services Authority Regulation Number 32/POJK.03/2018 concerning the Maximum Limit for Credit Provision and Large Fund Provision for Commercial Banks; Recalling:
CHAPTER I
GENERAL PROVISIONS
Article I
Several provisions in the Financial Services Authority Regulation Number 32/POJK.03/2018 concerning the Maximum Limit for Credit Provision and Large Fund Provision for Commercial Banks (State Gazette of the Republic of Indonesia Year 2018 Number 253, Supplement to the State Gazette of the Republic of Indonesia Number 6283) are amended as follows:
This copy is in accordance with the original
Director of Law 1
Law Department signed
Yuliana
In order that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on December 19, 2019 CHAIRMAN OF THE COMMISSIONERS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO Promulgated in Jakarta on December 19, 2019 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 245
EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 38 /POJK.03/2019
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING THE MAXIMUM LIMIT FOR CREDIT PROVISION AND LARGE FUND PROVISION FOR COMMERCIAL BANKS
I. GENERAL
One of the causes of Bank business failure is Fund Provision not supported by the Bank's ability to effectively manage the concentration of Fund Provision. A counterparty that suddenly defaults can endanger the Bank's solvency. To reduce the potential for Bank business failure as a result of the concentration of Fund Provision, Banks are required to spread and diversify the Fund Provision portfolio, especially through limiting Fund Provision, both to Related Parties and non-Related Parties, by a certain percentage of the Bank's Capital or Core Capital (tier 1) of the Bank, known as BMPK and Large Fund Provision. In this regard, there is a need to improve regulations in accordance with international standards, so that the Financial Services Authority Regulation regarding the maximum limit for credit provision and large fund provision for commercial banks needs to be amended, including regulations regarding Prime Banks, central counterparties, and reporting.
II. ARTICLE BY ARTICLE
Article I
Number 1
Sufficiently clear.
Number 2
Sufficiently clear.
Number 3
Article 32
Paragraph (1)
Securities linked or guaranteed by underlying assets are Securities whose price or value is determined, among others, based on the price or value of a specific instrument established as the underlying asset. Examples of such Securities include Asset-Backed Securities (ABS) and mutual funds. Paragraph (2) Example:
Bank "A" purchases ABS "XYZ" or mutual fund "PQR" from PT "B" with a total nominal value of purchase being less than 0.25% (zero point two five percent) of Core Capital (tier 1) of Bank "A". Fund Provision in the form of the purchase of ABS or mutual fund is established as Fund Provision to the issuer of ABS "XYZ" or the investment manager of mutual fund "PQR". Paragraph (3) Example 1:
Bank "A" purchases ABS "XYZ" from PT "B" with a total nominal value of purchase being equal to or greater than 0.25% (zero point two five percent) of Core Capital (tier 1) of Bank "A". The underlying assets of ABS "XYZ" are a portfolio of loans consisting of loans to PT "Alfa", PT "Beta", and PT "Gama". Thus, Fund Provision in the form of the purchase of ABS "XYZ" is established as Fund Provision to PT "Alfa", PT "Beta", and PT "Gama". Example 2:
Bank "A" purchases mutual fund "PQR" from PT "B" with a total nominal value of purchase being equal to or greater than 0.25% (zero point two five percent) of Core Capital (tier 1) of Bank "A". The underlying assets of mutual fund "PQR" are bonds of PT "Alfa" and bonds of PT "Beta". Thus, Fund Provision in the form of the purchase of mutual fund "PQR" is established as Fund Provision to PT "Alfa" and PT "Beta". Paragraph (4) Letter a Sufficiently clear. Letter b An example of the look-through approach is contained in Appendix I which is an integral part of this Financial Services Authority Regulation. Paragraph (5) In the event that the Bank is not required to use the look-through approach, the Bank demonstrates that the consideration to perform regulatory arbitrage does not affect the decision to use the look-through approach. For example, the Bank does not avoid setting Large Fund Provision limits by investing in several individual transactions that are immaterial with identical underlying assets. Paragraph (6) Sufficiently clear. Paragraph (7) Examples of third parties include originators, investment managers, liquidity providers, and credit protection providers. Paragraph (8) Sufficiently clear. Paragraph (9) Sufficiently clear. Number 4
Article 33
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Letter a
Sufficiently clear.
Letter b
Central government, public sector entities, or multilateral development banks; residential mortgage loans; or commercial property mortgage loans are as referred to in the Financial Services Authority regulations regarding the calculation guidelines for risk-weighted assets for credit risk using the standard approach. Letter c A pool of assets used as the basis for issuing Securities in the form of covered bonds may also consist of:
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Number 5
Article 38A
Paragraph (1)
Domestic central counterparties refer to regulations concerning the operation of central counterparties for interest rate and over-the-counter exchange rate derivative transactions. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Other fund provisions from non-clearing activities may take the form of financing facilities, Credits, and guarantees.
Article 38B
Clearly stated.
Article 38C
Paragraph (1)
Clearly stated.
Paragraph (2)
Qualifying central counterparty means an entity that has a license to operate as a central counterparty, including a license to obtain exemptions, and obtains approval from the relevant regulator or supervisor to operate as a central counterparty in accordance with the products offered. This refers to the provision that the central counterparty:
a. is based on regulations issued by the regulator; and b. is prudentially supervised by the relevant supervisor, in a jurisdiction that has provisions and regulations consistent with the Committee on Payment and Settlement Systems – International Organization of Securities Commissions Principles for Financial Market Infrastructures, and has been applied continuously.
Article 38D
Paragraph (1)
Letter a
Example:
The calculation of the value of Fund Provision for Derivative Transactions is calculated based on the value of Fund Provision for credit risk arising from counterparty failure. Letter b In the event that the initial margin submitted has been freed from the bankruptcy risk experienced by the central counterparty, namely the initial margin is separated from the records held by the central counterparty, the Bank will not lose the initial margin if the central counterparty defaults. Thus, the initial margin submitted by the Bank to the central counterparty may be excluded from the calculation of Maximum Credit Granting (BMPK). Letter c Clearly stated. Letter d The value of Fund Provision in the form of pre-funded default fund contributions may be changed if Fund Provision is provided to qualifying central counterparties and not only provided to non-qualifying central counterparties. Letter e Clearly stated. Letter f Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Standards regarding risk-based capital requirements for central counterparties refer to documents regarding Capital Requirements for Bank Exposures to Central Counterparties issued by the Basel Committee on Banking Supervision. Paragraph (4) Clearly stated. Number 6
Article 43
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Unconditional means in the event that:
Letter c
Clearly stated.
Letter d
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Number 7
Article 46
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
With the guarantee from a Related Party's Prime Bank, the total Fund Provision to Borrowers who obtain such guarantee is at most:
a. 100% (one hundred percent) of the Bank's Capital for Related Parties; or b. 100% (one hundred percent) of Core Capital (tier 1) of the Bank for Fund Provision to 1 (one) Borrower or 1 (one) group of Borrowers other than Related Parties. Example 1:
Borrower “A” and Borrower “B” are Related Parties of PT Bank “X” who obtain guarantees in the form of standby letters of credit issued by the parent company of PT Bank “X” in the form of a Prime Bank. The portion of Fund Provision from PT Bank “X” to Borrower “A” and Borrower “B” who obtain such guarantees may be excluded from the calculation of Maximum Credit Granting (BMPK) at most 90% (ninety percent) of the Bank's Capital. This limit applies to the total Fund Provision to Related Parties. The portion of Fund Provision to Borrower “A” and Borrower “B” who do not obtain such guarantees is calculated as Fund Provision to Related Parties of the Bank, which in total is set at most 10% (ten percent) of the Bank's Capital. Example 2:
Borrower “C” and Borrower “D” are non-Related Parties (not a group of Borrowers) of PT Bank “Y” who obtain guarantees in the form of standby letters of credit issued by the parent company of PT Bank “Y” in the form of a Prime Bank. The total Fund Provision from PT Bank “Y” to each of Borrower “C” and Borrower “D” is at most 100% (one hundred percent) of Core Capital (tier 1), taking into account the Maximum Credit Granting (BMPK) limit for the portion that does not obtain guarantees, namely at most 25% (twenty-five percent) of Core Capital (tier 1) for each of Borrower “C” and Borrower “D”. Number 8
Article 50
Clearly stated.
Number 9
Article 60
Clearly stated.
Number 10
Article 64A
Clearly stated.
Number 11
Clearly stated.
Article II
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6438
APPENDIX II
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 38 /POJK.03/2019
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 32/POJK.03/2018 CONCERNING MAXIMUM CREDIT GRANTING AND LARGE FUND PROVISION FOR COMMERCIAL BANKS
GUIDELINES FOR PREPARING REPORTS ON MAXIMUM CREDIT GRANTING AND LARGE FUND PROVISION FOR COMMERCIAL BANKS INDIVIDUAL FUND PROVISION REPORT Bank Name : PT Bank…. (individual) Report Position : Month/Year
(In Millions of Rupiah)
Initial Maturity
XII/i XIV XV XVI XVII XVIII XIX.1 XIX.2 XX XXI COLLATERAL/GUARANTEE PROVIDED (MRK TECHNIQUE) Quality Description Timeframe Form Collateral/ Guarantee Guaranteed Portion Issuer Collateral/ Guarantee Rating Guarantor Rating Agency Date Rating
CONSOLIDATED FUND PROVISION REPORT
Bank Name : PT Bank…. (consolidation)
Report Position : Month/Year
(In
Millions of Rupiah)
Initial Maturity Rupiah Foreign Currency Rupiah Foreign Currency XI XII.1 XII.2 XIII XIV XV XVI XVII XVIII XIX XX Description Consolidated Capital Quality Total Fund Provision after MRK Technique CONSOLIDATION Type Fund Provision SUBSIDIARIES Timeframe Total Fund Provision after MRK Technique Exchange Rate
Guidelines for Filling Out the Fund Provision Report In this table, the following matters are reported:
The Bank reports the total Related Parties and details all Related Parties to whom the Bank provides Fund Provision on subsequent lines.
In the event that there are Fund Provisions to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.
III. Name of Group of Borrowers
This column is filled with the name of the group of Borrowers.
IV. Relationship with the Bank
This column is filled with the following codes:
No. Relationship Code
m. Others 0410
2. Non-Related Party
a. Individual Borrowers 9900 b. Group of Borrowers
VII. Timeframe
XI. Capital
This column is filled with the total Bank Capital at the time of the reporting month, both individually and consolidated.
XII. Core Capital (tier 1)
This column is filled with the Bank's Core Capital (tier 1) at the time of the reporting month, both individually and consolidated.
XIII. Form of Collateral/Guarantee
This column is filled with collateral/guarantee that can be calculated as a reduction factor in the calculation of Maximum Credit Granting (BMPK) and Large Fund Provision as referred to in this Financial Services Authority Regulation, namely with the following codes:
No. Form of Collateral/Guarantee Code
the sum of all guaranteed portions from all Related Parties/group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
XV. Issuer of Collateral/Guarantee
This column is filled with the issuer of collateral/guarantee such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party category codes and Bank codes as referred to in regulations concerning integrated commercial bank reports.
XVI. Guarantor Rating
This column is filled with the rating of the collateral issuer. This column is filled with the number 00 for collateral/guarantee issued by the Government of the Republic of Indonesia or Bank Indonesia.
XVII. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter concerning recognized rating agencies and ratings by the Financial Services Authority. This column is filled with the following codes:
No. Rating Agency Code
XX. Quality
Quality of Fund Provision, namely the quality of the Fund Provision provided by the Bank, assessed according to regulations concerning the assessment of commercial bank asset quality with the following quality classification:
No. Quality Code
LARGE FUND PROVISION REPORT
Bank Name : PT Bank…. (individual/consolidation)* Report Position : Month/Year
(In Millions of Rupiah)
Initial Maturity Rupiah Foreign Currency
% Total
Fund Provision with
Core Capital (Tier 1)
XII XIII XIV XV XVI XVII XVIII.1 XVIII.2 XIX XX XXI XXII Form Collateral/ Guarantee Total Fund Provision after MRK Technique (Unguaranteed Portion) Guaranteed Portion Issuer Collateral/ Guarantee Rating Guarantor Rating Agency Date Rating COLLATERAL/GUARANTEE PROVIDED (MRK TECHNIQUE) Description Timeframe
Guidelines for Filling Out the Large Fund Provision Report In this table, all Fund Provisions of 10% (ten percent) or more of the Bank's Core Capital (tier 1) to non-Related Parties are reported, before and after applying the MRK Technique. This table does not include Large Fund Provisions that have been exempted and reported through the Large Fund Provision Exemption Report.
I. Name
This column is filled with the names of all non-Related Party Borrowers, whether individuals or groups of Borrowers. In the event that the Bank fills in the total group of Borrowers/group of State-Owned Enterprises (BUMN) Borrowers, the Name column is filled with “Total”, followed on the next line by the names of each member of the group of Borrowers. Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”. For Banks that do not have Large Fund Provisions, the Borrower Name column is filled with “Nihil”.
II. Individual/Group of Borrowers Member/Total Group of Borrowers
This column is filled with the following codes:
No. Individual/Group Member/Total Group Code
In the event that there are Fund Provisions to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.
III. Name of Group of Borrowers
This column is filled with the name of the group of Borrowers.
IV. Status of Relationship with the Bank
This column is filled with the following codes:
No. Status of Relationship with the Bank Code
For Borrowers who obtain Fund Provision from the Bank in more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision. In the event that there are issuers of collateral/guarantee issuers/guarantors whose exposures are calculated due to the application of the MRK Technique, this column is filled with code 62, namely Other Forms of Fund Provision.
VI. Timeframe
the sum of all total foreign currency fund provisions from all group of Borrowers members/group of State-Owned Enterprises (BUMN) Borrowers members.
IX. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.
X. Core Capital (tier 1)
This column is filled with the Bank's Core Capital (tier 1) at the time of the reporting month, both individually and consolidated.
XI. Percentage of Fund Provision with Core Capital (tier 1)
Percentage of Fund Provision with Core Capital (tier 1) of the Bank before applying the MRK Technique.
XII. Form of Collateral/Guarantee
This column is filled with collateral/guarantee that can be calculated as a reduction factor in the calculation of Maximum Credit Granting (BMPK) and Large Fund Provision as referred to in this Financial Services Authority Regulation, namely with the following codes:
No. Form of Collateral/Guarantee Code
XIII. Secured Portion
This column is filled with the portion of Fund Provision that receives protection from MRK Techniques as referred to in this Financial Services Authority Regulation.
In the event that one Fund Provision uses more than 1 (one) collateral/guarantee, the Bank sums the value of each form of collateral/guarantee as the secured portion with a maximum value equal to the total Fund Provision.
In the event the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all secured portions from all members of the borrower group/BUMN borrower group members.
XIV. Issuer of Collateral/Guarantee
This column is filled with the issuer of the collateral/guarantee such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party group code and Bank code as referred to in regulations concerning integrated general bank reports.
XV. Guarantor Rating
This column is filled with the rating of the collateral issuer. This column is filled with the number 00 for collateral/guarantees issued by the Government of the Republic of Indonesia or Bank Indonesia.
XVI. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter concerning recognized rating agencies and ratings by the Financial Services Authority. This column is filled with the code:
No. Rating Agency Code
XVII. Rating Date
This column is filled with the date, month, and year when the rating was given.
XVIII. Tenor
XIX. Amount of Rupiah Fund Provision after MRK Technique
This column is filled with the amount of Fund Provision individually or consolidated that is received by the Borrower in Rupiah currency after applying the MRK Technique. Fund Provision after the MRK Technique is the portion of Fund Provision that is not secured by the MRK Technique as referred to in this Financial Services Authority Regulation.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
In the event the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all amounts of Rupiah Fund Provision from all members of the borrower group/BUMN borrower group members.
XX. Amount of Foreign Currency Fund Provision after MRK Technique
This column is filled with the amount of Fund Provision individually or consolidated that is received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower or one member of the borrower group or one related member after applying the MRK Technique. Fund Provision after the MRK Technique is the portion of Fund Provision that is not secured by the MRK Technique as referred to in this Financial Services Authority Regulation.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
In the event the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all amounts of foreign currency Fund Provision from all members of the borrower group/BUMN borrower group members.
XXI. Percentage of Fund Provision with Core Capital (tier 1)
Percentage of Fund Provision with Bank Core Capital (tier 1) after applying the MRK Technique.
XXII. Notes
This column is filled with other notes considered necessary.
LARGE FUND PROVISION EXCLUSION REPORT
Bank Name : PT Bank…. (individual/consolidated)* Report Position : Month/Year (In Millions of Rupiah)
| I | II | III | IV | V | VI.1 | VI.2 | VII | VIII | IX | X | XI | XII | XIII | XIV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Borrower | Fund Provision on Reporting Date | Specific BMPK Treatment | ||||||||||||
| Name Individual/Member of Borrower Group/Total Borrower Group | Name of Borrower Group | Relationship Status with Bank | Type of Fund Provision | Tenor | Amount of Fund Provision | Exchange Rate | Core Capital (Tier 1) | Form of Specific BMPK Treatment | Amount of Fund Provision with Specific BMPK Treatment |
Guidelines for Filling the Large Fund Provision Exclusion Report In this table, all Fund Provisions of 10% (ten percent) or more of Core Capital (tier 1) to parties other than Related Parties that are excluded from BMPK calculations and Large Fund Provision calculations based on this Financial Services Authority Regulation are reported.
I. Name
This column is filled with the name of all Borrowers other than Related Parties consisting of individuals or borrower groups. In the event the Bank fills in the total borrower group/BUMN borrower group, the Name column is filled with “Total”, followed on the next row by the names of each member of the borrower group.
Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.
For Banks that do not have Large Fund Provision Exclusions, the Borrower Name column is filled with “Nihil”.
II. Individual/Member of Borrower Group/Total Borrower Group
This column is filled with the code:
No. Individual/Member Group/Total Group Code
The Bank reports the Total Borrower Group/Total BUMn Borrower Group and details all Members of the Borrower Group/Members of the BUMn Borrower Group on subsequent rows. In the event there is 1 (one) Member of the Borrower Group/Member of the BUMn Borrower Group that is a member of more than 1 (one) borrower group/BUMn borrower group, that Member of the Borrower Group/Member of the BUMn Borrower Group is reported in the details of each Total Borrower Group/Total BUMn Borrower Group.
In the event there is Fund Provision to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.
III. Name of Borrower Group
This column is filled with the name of the borrower group.
IV. Relationship Status with Bank
This column is filled with the code:
No. Relationship Status with Bank Code
The explanation of the relationship status with the Bank is as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.
V. Type of Fund Provision
This column is filled with the type of Fund Provision given by the Bank to the Borrower as regulated in this appendix. This column is filled with the code:
No. Type of Fund Provision Code
For Borrowers who receive Fund Provision from the Bank of more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision.
In the event there is an issuer of collateral/issuer of guarantee/guarantor whose exposure is calculated due to the application of the MRK Technique, this column is filled with code 62, which is Other Forms of Fund Provision.
VI. Tenor
VII. Amount of Rupiah Fund Provision
This column is filled with the amount of Fund Provision individually or consolidated that is received by the Borrower in Rupiah currency.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
In the event the Bank fills in information regarding the total borrower group/BUMn borrower group, this column is filled with the sum of all amounts of Rupiah Fund Provision from all Related Parties/members of the borrower group/members of the BUMn borrower group.
VIII. Amount of Foreign Currency Fund Provision
This column is filled with the amount of Fund Provision received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
In the event the Bank fills in information regarding the total borrower group/BUMn borrower group, this column is filled with the sum of all amounts of foreign currency Fund Provision from all members of the borrower group/members of the BUMn borrower group.
IX. Exchange Rate
Filled with the closing exchange rate of Bank Indonesia at the end of the reporting month, using the middle rate.
X. Core Capital
This column is filled with the Bank’s Core Capital (tier 1) at the time of the reporting month, both individually and consolidated.
XI. Form of Specific BMPK Treatment
This column is filled with the specific BMPK treatment as regulated in these provisions, namely with the code:
No. Form of Specific BMPK Treatment Code
In the event one Fund Provision receives more than 1 (one) specific BMPK treatment, this column is filled with the form of specific BMPK treatment that has the largest proportion of specific BMPK treatment.
XII. Amount of Rupiah Fund Provision Receiving Specific BMPK Treatment
This column is filled with the value of Rupiah Fund Provision individually or consolidated that receives specific BMPK treatment as referred to in this Financial Services Authority Regulation.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
XIII. Amount of Foreign Currency Fund Provision Receiving Specific BMPK Treatment
This column is filled with the value of foreign currency Fund Provision individually or consolidated that receives specific BMPK treatment as referred to in this Financial Services Authority Regulation.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
XIV. Percentage of Fund Provision with Core Capital (tier 1)
Percentage of Fund Provision receiving specific BMPK treatment with Bank Core Capital (tier 1).
LARGE FUND PROVISION VIOLATION OR EXCEEDANCE REPORT Bank Name : PT Bank…. (individual) Report Position : Month/Year
| I | II | III | IV | V | VI | VII.1 | VII.2 | VIII | IX | X | XI | XII | XIII | XIV | XV | XVI | XVII | XVIII | XIX.1 | XIX.2 | XX.1 | XX.2 | XXI.1 | XXI.2 | XXII | XXIII | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tenor | Amount | Exchange Rate | Type of Fund Provision | Borrower | Fund Provision at Realization or Reporting Date (BEFORE MRK TECHNIQUE) | Collateral/Guarantee Given (MRK TECHNIQUE) | BMPK Violation | BMPK Exceedance | ||||||||||||||||||||||
| Name Individual/Member of Borrower Group/Total Borrower Group | Name of Group/Borrower Group | Relationship with Bank | Status of Relationship with Bank | Form of Collateral/Guarantee | Issuer of Collateral/Guarantee | Nominal | % | Guarantor Rating | Rating Agency | Rating Date | Tenor | Nominal | Secured Portion | % | Quality | Notes |
LARGE FUND PROVISION VIOLATION OR EXCEEDANCE REPORT (CONSOLIDATED) Bank Name : PT Bank…. (consolidated) Report Position : Month/Year
| I | II | III | IV | V | VI | VII.1 | VII.2 | VIII | IX | X | XI | XII.1 | XII.2 | XIII | XIV | XV | XVI | XVII | XVIII | XIX | XX | XXI | XXII | XXIII |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Exchange Rate | Amount of Fund Provision after MRK Technique | Exchange Rate | Type of Fund Provision | Tenor | Amount of Fund Provision after MRK Technique | Name of Borrower | Individual/Member of Borrower Group/Total Borrower Group | Name of Group/Borrower Group | Relationship with Bank | Status of Relationship with Bank | BANK SUBSIDIARIES | |||||||||||||
| Type of Fund Provision | Tenor |
(In Millions of Rupiah)
| Rupiah | Foreign Currency | Nominal (Rupiah) | % | Nominal (Rupiah) | % | Consolidated Core Capital*) | Consolidated | BMPK Violation | BMPK Exceedance | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Form of Collateral/Guarantee | Issuer of Collateral/Guarantee | Nominal | % | Guarantor Rating | Rating Agency | Rating Date | Tenor | Nominal | Secured Portion | % | Quality | Notes |
*) Consolidated capital for the calculation of BMPK Violation is the total Capital or Core Capital (tier 1) consolidated in the last quarter before the realization of Fund Provision. Consolidated capital for the calculation of BMPK Exceedance is the total Capital or Core Capital (tier 1) consolidated in the reporting month.
Guidelines for Filling the BMPK Violation or BMPK Exceedance Report In this table, Borrowers or borrower groups that commit BMPK Violations or BMPK Exceedances are reported. In the event a borrower group commits a BMPK Violation or BMPK Exceedance, individual members of the borrower group are reported in this table even if the individual members of the borrower group do not commit a BMPK Violation or BMPK Exceedance.
I. Name
This column is filled with the name of all Related Party Borrowers or other parties consisting of individuals or borrower groups. In the event the Bank fills in the total Related Party/borrower group/BUMn borrower group, the Name column is filled with “Total”, followed on the next row by the names of each member of the group.
Debtors classified as “unknown client” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.
For Banks that do not have BMPK violations or BMPK exceedances, the Borrower Name column is filled with “Nihil”. Meanwhile, for Banks that have negative capital, the Borrower Name column is filled with “ALL DEBTORS” and the notes column is filled with “Negative Capital”.
II. Individual/Member of Borrower Group/Total Borrower Group
This column is filled with the code:
No. Individual/Member Group/Total Group Code
The Bank reports the Total Borrower Group/Total BUMn Borrower Group and details all Members of the Borrower Group/Members of the BUMn Borrower Group on subsequent rows. In the event there is 1 (one) Member of the Borrower Group/Member of the BUMn Borrower Group that is a member of more than 1 (one) borrower group/BUMn borrower group, that Member of the Borrower Group/Member of the BUMn Borrower Group is reported in the details of each Total Borrower Group/Total BUMn Borrower Group.
The Bank reports the total Related Party and details all Related Parties given Fund Provision by the Bank on subsequent rows.
In the event there is Fund Provision to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.
III. Name of Borrower Group
This column is filled with the name of the borrower group.
IV. Relationship with Bank
This column is filled with the code:
No. Relationship with Bank Code
V. Status of Relationship with Bank
This column is filled with the code:
No. Status of Relationship with Bank Code
The explanation of the relationship status with the Bank is as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.
VI. Type of Fund Provision
No. Type of Fund Provision Code
For Borrowers who receive Fund Provision from the Bank of more than one type, this column is filled with the type of Fund Provision that has the largest amount of Fund Provision.
In the event there is an issuer of collateral/issuer of guarantee/guarantor whose exposure is calculated due to the application of the MRK Technique, this column is filled with code 62, which is Other Forms of Fund Provision.
VII. Tenor
VIII. Amount of Rupiah Fund Provision
This column is filled with the amount of Fund Provision received by the Borrower in Rupiah currency.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
In the event of consolidated reporting, Fund Provision is the amount of Fund Provision after applying the MRK Technique.
In the event the Bank fills in information regarding the total Related Party/borrower group/BUMn borrower group, this column is filled with the sum of all amounts of Rupiah Fund Provision from all Related Parties/members of the borrower group/members of the BUMn borrower group.
IX. Amount of Foreign Currency Fund Provision
This column is filled with the amount of Fund Provision received by the Borrower in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Borrower.
In the event there is more than 1 (one) type of Fund Provision for 1 (one) Borrower, the Bank sums all values of Fund Provision for each Fund Provision with a calculation method as regulated in this Financial Services Authority Regulation.
In the event the Bank fills in information regarding the total Related Party/borrower group/BUMn borrower group, this column is filled with the sum of all amounts of foreign currency Fund Provision from all Related Parties/members of the borrower group/members of the BUMn borrower group.
X. Exchange Rate
Filled with the closing exchange rate of Bank Indonesia at the end of the reporting month, using the middle rate.
XI. Capital
This column is filled with the total Bank Capital at the position of the last month before the realization of Fund Provision for the calculation of BMPK Violation individually. This column is filled with the total Capital at the time of the reporting month for the calculation of BMPK Exceedance individually.
XII. Core Capital (tier 1)
This column is filled with Core Capital (tier 1) at the position of the last month before the realization of Fund Provision for the calculation of BMPK Violation individually. This column is filled with Core Capital (tier 1) at the time of the reporting month for the calculation of BMPK Exceedance individually.
XIII. Form of Collateral/Guarantee
This column is filled with collateral/guarantees that can be counted as a reducing factor in the calculation of BMPK and Large Fund Provision as referred to in this Financial Services Authority Regulation, namely with the code:
No. Form of Collateral/Guarantee Code
In the event that a Fund Provision uses more than 1 (one) collateral/guarantee, this column is filled with the form of collateral/guarantee that has the largest guaranteed share.
XIV. Guaranteed Portion
This column is filled with the portion of the Fund Provision that receives protection from credit risk mitigation instruments as referred to in this Financial Services Authority Regulation.
In the event that a Fund Provision uses more than 1 (one) collateral/guarantee, the Bank sums the value of each form of collateral/guarantee as the guaranteed portion with the largest value equal to the sum of the Fund Provision.
In the event that the Bank fills in information regarding the total Related Party/borrower group/BUMN borrower group, this column is filled with the sum of all guaranteed portions from all Related Parties/member of borrower groups/member of BUMN borrower groups.
XV. Issuer of Guarantee/Collateral
This column is filled with the issuer of the guarantee/collateral such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party group code and Bank code as referred to in provisions of legislation regarding integrated commercial bank reports.
XVI. Guarantor Rating
This column is filled with the rating of the guarantee issuer. This column is filled with the number 00 for guarantees/collaterals issued by the Government of the Republic of Indonesia or Bank Indonesia.
XVII. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter regarding rating agencies and ratings recognized by the Financial Services Authority.
This column is filled with the code:
No. Rating Agency Code
XVIII. Rating Date
This column is filled with the date, month, and year when the rating was given.
XIX. Duration
XX. Violation or Exceedance of BMPK and Large Fund Provision
Nominal Violation or Exceedance
This column is filled with the following calculation method:
XXI. Percentage of Violation or Exceedance of BMPK
Percentage calculation (%), the nominal BMPK Violation or BMPK Exceedance divided by Bank Capital or Bank Core Capital (tier 1) multiplied by 100% (one hundred percent).
This column is filled from the calculation result:
(BMPK Violation or BMPK Exceedance ÷ (Total Capital or Core Capital (tier 1)) x 100%
XXII. Quality
Quality of Fund Provision, namely the quality of the Fund Provision provided by the Bank assessed according to provisions regarding the assessment of commercial bank asset quality with quality classification as follows:
No. Quality Code
XXIII. Notes
This column is filled with other information considered necessary.
Established in Jakarta on December 19, 2019
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
Yuliana
Legal Director 1
Legal Department
WIMBOH SANTOSO
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This document amends: Maximum Limit on Credit Provision and Large Fund Provision for General Banks
Source: Otoritas Jasa Keuangan (Financial Services Authority) — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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