The OJK wants all lenders to have a minimum core capital of 3tr rupiah by 2022. About half of Indonesian banks will be affected.
At the second meeting of the Banking Sector SME Lending Coordination Mechanism, established in October, banks agreed to a number of additional measures to aid SME borrowers.
Each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of stress events.
The new scheme provides risk mitigation support to banks that defer principal repayment and extend new loans for SME borrowers, including those that have defaulted.
The new Banking Act will streamline the licensing process, branch approvals, and adopt a proportionality framework for banking regulations, among other changes.
The total capital shortfall among the 12 banks was reported to be over $2bn as of the end of September, amid rising bad loans in the banking sector.
Under the framework, the RBI will monitor UCBs' asset quality, profitability and capital, and initiate supervisory action when specific thresholds are breached.
There are three key areas where Hong Kong regulators are expected to turn up the heat in 2020, says KPMG’s Simon Topping.
Finance Minister AHM Mustafa Kamal says banks have a final deadline of 1 April to bring down the maximum lending rate to 9% and the maximum deposit rate to 6%.
The RRR cut will release about 800bn yuan of 'long-term funds' for financial institutions to lend to the real economy.