Regulatory Alerts2012-11-28
Bank Indonesia Regulation No. 14/18/PBI/2012 on Minimum Capital Adequacy Requirement for Commercial Banks
Bank Indonesia issued Regulation No. 14/18/PBI/2012 to align commercial bank capital adequacy calculations with international standards and enhance the soundness of the national banking system. The regulation mandates that banks maintain minimum capital ratios ranging from 8% to 14% of risk-weighted assets based on their risk profile ratings and implement an Internal Capital Adequacy Assessment Process. Additionally, foreign bank branches must satisfy a minimum Capital Equivalency Maintained Assets requirement of 8% of total liabilities, subject to a floor of Rp1 trillion.
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