Regulatory Alerts2024-12-13
Added · Updated
OJK Regulation No. 26 of 2024 on the Expansion of Banking Business Activities
This regulation expands banking business activities by permitting conventional and Sharia commercial banks to make equity investments in financial service institutions and non-financial companies supporting the banking industry, while prohibiting equity investments by Sharia business units and foreign branches. It establishes a 15% portfolio cap on equity investments by Rural Banks (BPR) and Sharia Rural Banks (BPR Syariah), requiring prior OJK approval for such investments and mandating specific risk management, internal control, and reporting procedures. Administrative sanctions, including written reprimands, bans on new investments, and health rating downgrades, are imposed for violations of these investment limits and approval requirements.
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