Regulatory AlertsCapital Calculation for Bank Exposures to Central Counterparty Institutions
The Indonesian Financial Services Authority (OJK) issued Circular Letter No. 16/SEOJK.03/2023 to establish capital calculation standards for bank exposures to Central Counterparties (CCPs), aligning with Basel Committee on Banking Supervision guidelines. The regulation mandates specific calculation methodologies for exposures involving Qualified CCPs and non-Qualified CCPs, including default fund contributions and collateral, while also defining reporting and publication requirements. This framework applies to conventional commercial banks and foreign bank branches in Indonesia, with implementation commencing after the first Qualified CCP begins operations in the country.
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