Regulatory Alerts2011-03-24
Bank Indonesia Regulation Number 13/13/PBI/2011 Concerning Asset Quality Rating for Islamic Commercial Banks and Islamic Business Units
Bank Indonesia issued Regulation Number 13/13/PBI/2011 to establish prudential standards for asset quality ratings specifically for Islamic Commercial Banks and Islamic Business Units. The regulation mandates that banks assess and classify earning and non-earning assets into categories such as Current, Special Mention, Substandard, Doubtful, and Loss based on Sharia principles and risk management criteria. It further details specific assessment factors for various financing types, including Mudharabah and Musyarakah, and sets requirements for internal controls, documentation, and allowance for asset losses.
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