Regulatory Alerts2011-03-24
Bank Indonesia Regulation Number 13/14/PBI/2011 Concerning Asset Quality Rating for Islamic Rural Banks
Bank Indonesia issued Regulation Number 13/14/PBI/2011 to establish prudential standards for asset quality rating and allowance for asset losses in Islamic Rural Banks. The regulation mandates the classification of earning and non-earning assets into Current, Sub-standard, Doubtful, and Loss categories based on payment timeliness and profitability ratios. It further prescribes specific reserve requirements and collateral valuation methods to ensure sufficient provisioning against potential asset losses.
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