Regulatory Alerts2010-08-30
Bank Indonesia Circular Letter 12/24/DPM on Amendment to Sovereign Syariah Securities Repurchase Agreement Procedures
Bank Indonesia issued Circular Letter 12/24/DPM to amend procedures for sovereign syariah securities repurchase agreements and harmonize them with updated monetary operations regulations. The revised framework mandates a minimum three-business-day validity tenure for these repos and establishes precise debit or credit adjustments to a participating bank's demand deposit account based on settlement liability differences. Additionally, the regulation imposes financial penalties for cancelled transactions and suspends participating banks from open market operations for five consecutive days after three cancellations within six months.
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