Regulatory AlertsOJK Regulation No. 24 of 2024 on Asset Quality of Sharia People's Economy Banks
The Financial Services Authority (OJK) issued Regulation No. 24 of 2024 to establish asset quality standards for Sharia People's Economy Banks (BPRS) in alignment with recent accounting standards and the Financial Sector Development and Strengthening Act. This regulation repeals previous OJK regulations regarding minimum capital requirements and productive asset quality for BPRS, replacing them with updated frameworks for asset classification and impairment reserves. The regulation became effective on November 29, 2024, with specific provisions on capital contributions and impairment reserves taking effect on January 1, 2025.
Regulation / Regulation Search / Asset Quality of Sharia People's Economy Banks
Sector: Banking
Sub-Sector: BPR; BPRS; Sharia Banking
Regulation Type: OJK Regulation
Regulation Number: 24 of 2024
Effective Date: 11/29/2024
Attachment 1 POJK 24 of 2024 Asset Quality of Sharia People's Economy Banks.pdf Abstract of POJK 24 of 2024 Asset Quality of Sharia People's Economy Banks.pdf FAQ of POJK 24 of 2024 Asset Quality of Sharia People's Economy Banks.pdf
Page Content Financial Services Authority Regulation Republic of Indonesia Number 24 of 2024 concerning Asset Quality of Sharia People's Economy Banks
Abstract: This OJK Regulation is formulated to implement the provisions of Article 40 of Law Number 21 of 2008 concerning Sharia Banking, as amended several times, most recently by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, in line with the latest developments in financial accounting standards, and harmonization with the latest regulations, including regulations on the asset quality of people's economy banks and regulations on the asset quality of general Sharia banks and Sharia business units.
The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 21 of 2008 as amended several times, most recently by Law No. 4 of 2023; and Law No. 21 of 2011 as amended by Law No. 4 of 2023.
Note: This Financial Services Authority Regulation takes effect on the date of promulgation. This Financial Services Authority Regulation was promulgated on November 29, 2024, and established on November 29, 2024. Provisions regarding Capital Contributions and Impairment Loss Reserves (CKPN) take effect as of January 1, 2025. Upon the commencement of this Financial Services Authority Regulation, the formation of Asset Quality Assessment Provisions (PPKA) is carried out until December 31, 2024, except for the formation of PPKA for placements in conventional general banks. Upon the commencement of this Financial Services Authority Regulation, the provisions as referred to in Article 7 paragraph (4) and Article 8 paragraph (5) of Financial Services Authority Regulation Number 66/POJK.03/2016 concerning Minimum Capital Requirements and Minimum Core Capital Fulfillment for Sharia Financing People's Economy Banks are repealed and declared invalid. Upon the commencement of this Financial Services Authority Regulation, Financial Services Authority Regulation Number 29/POJK.03/2019 concerning Productive Asset Quality and Formation of Productive Asset Write-off Provisions for Sharia Financing People's Economy Banks is repealed and declared invalid.
Explanation: 22 pages. Attachment I: 3 pages. Attachment II: 35 pages. Attachment III: 4 pages. Attachment IV: 21 pages.