Regulatory AlertsFinancial Services Authority Regulation Number 41 of 2024 on Microfinance Institutions
The Financial Services Authority (OJK) issued Regulation 41 of 2024 to consolidate and update the regulatory framework for Microfinance Institutions (LKM), replacing three previous regulations. The regulation expands local government ownership rights, classifies LKMs into small, medium, and large scales, and mandates a minimum composite health rating of 3. It also establishes distinct supervision responsibilities for local governments and the OJK, along with specific requirements for loan classification, fund placement, and financial reporting.
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