Keuangan, Otoritas Jasa

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 2017 Banking: Special Surveillance Otoritas Jasa Keuangan Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Keuangan, Otoritas Jasa, "Banking: Special Surveillance" (2017). YPFS Documents (Series 1). 11857. https://elischolar.library.yale.edu/ypfs-documents/11857 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. 1/19/22, 8:23 AM Bankinghttps://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx 1/6Banking (/en/kanal/perbankan/Default.aspx)(/en)Search...INDONESIA (https://www.ojk.go.id/id/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx) ABOUT OJK (/en/tentang-ojk/) FAQ (/en/FAQ.aspx)  CONTACT (/en/Contact.aspx)LOGIN  (/en/_layouts/15/Authenticate.aspx?Source=https://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx)  🔒PersBusinessPublic(/EN/)HOME (/EN/)BANKINGCAPITAL MARKETNON-BANKSHARIACONSUMERREGULATIONNEWS AND EVENTSSpecial Surveillance1/19/22, 8:23 AM Bankinghttps://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx 2/6 SPECIAL SURVEILLANCE:: Surveillance Strategy of Bank IndonesiaIn performing its supervisory function, Bank Indonesia has set three supervisory classifications based onthe evaluation of a particular bank. The categories are as follows:1. Routine Supervision2. Intensive Supervision3. Special SurveillanceBank Indonesia also supervisesbanks in recovery (BDP), and monitors the liability settlement of frozenbanks (BBKU), and liquidated banks (BDL) set by prevailing regulations.:: Surveillance Approach of Bank IndonesiaThe surveillance approach adopted by Bank Indonesia is split into two activities, namely off-sitesupervision and on-site examination. Off-site supervision constitutes supervision and analysis based onregulatory reports submitted by a bank, information in the form of other communications, as well asinformation from third parties. Meanwhile, on-site examination is performed by investigation andevaluating a bankʼs compliance toprevailing regulations. Both approaches include detailed analyses of abankʼs current condition and are forward looking.:: Routine SupervisionAll banks are subject to routine supervision. Generally, the frequency of such supervision is on an annualbasis.::Intensive SupervisionBanks suffering a potential threat to their business activity are placed under intensive supervision. Themeasures taken by Bank Indonesia against abank under intensive supervision are as follows:1. Instruct bank to report onspecific issues.2. Intensify the frequency of the work plan assessment and adjust it to meet the desired target.3. Instruct bank to compile a work plan to overcome its current problems.4. Place an on-site supervisor or assessor from Bank Indonesia, if necessary.A bank subject toIntensive Supervision that does not improve in terms of itsfinancial condition andmanagement, or if analysis by Bank Indonesia finds that a bankʼs business activity is under threat, thensuch a bank will beplaced under Special Supervision status.As required, the intensity of direct examination1/19/22, 8:23 AM Bankinghttps://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx 3/6may escalate, especially in terms of assessing performance based on existing commitments and the workplan submitted by the bankʼs management to Bank Indonesia.:: Special SurveillanceSpecial surveillance is applicabletoa bank that does not meet the minimum requirements. The measuresavailable to Bank Indonesia under these circumstances are as follows:1. Instruct a bank and/or its shareholders to submita written capital restoration plan to Bank Indonesia.2. Require a bank to fulfill mandatory supervisory actions.3. Direct a bank and/or its shareholders to:replace the board of commissioners and/or directors;write-off credit or finance considered a loss based on Shariah Principles and calculate the bankʼsloss with the bankʼs capital;merge or consolidate with another bank;sell the bank to a buyer willing to accept the bankʼs liabilities;replace the management asa whole or in part to a third party;sell some or all of the bankʼs assets and/or liabilities toa third party; and/orfreeze the bankʼs business activity.Restrictions and limitations for banks under special surveillance include:1. Bank is not permitted to distribute capital (dividend or bonus);2. Bank is not permitted to transact with parties stipulated by Bank Indonesia;3. Bank is sanctioned with asset growth limitation;4. Bank is not permitted to pay subordinate loans;5. Bank is sanctioned with compensation limitation to particular parties;Apart from the limitations listed above, Bank Indonesia will also post a list of banks under specialsurveillance on Bank Indonesiaʼs website. In contrast, in the interest of balanced public information,BankIndonesia will publicly announce any bank removed from special surveillance status.The maximum period of time a bank may be placed under special surveillance is three months for banksnot listed on the capital market and six months for listed banks. The time period may be extended butonly once and for no more than three months. Extensionsare normally granted due to the necessary legalprocesses, for examplebudgetary alterations, transfer of ownership, the license process and due diligence.Generally the frequency and intensity of surveillance and assessment will escalate in order to monitorperformance and bank commitment as well as its liabilities as instructed by Bank Indonesia. Based on suchanalysis and surveillance, if a bankʼs condition is found to deterioratethe bank will be placed under theauspices of IBRA with two alternative status options:Banks in Recovery or Frozen Banks.:: Banks in Recovery (BDP)Banks can be assigned this status should such a bank be deemed recoverable, especially in terms of itscapital. During the recovery process administrated by IBRA, communications and collaboration betweenBank Indonesia and IBRA are intensive, particularly regarding the development of primary performanceindicators, namely capital, the liquidity ratio (reserve requirement), non-performing loans, prudentialregulations (BMPK, PDN, PPAP), and work plan achievements. If conditions improve sufficiently and therecovery program is completed and deemed successful, then BDP status is revoked and the bank isreassigned to Bank Indonesia for furthersurveillance. In contrast, if the bankʼs condition deteriorates thenits status can be downgraded to Frozen.:: Frozen Bank1/19/22, 8:23 AM Bankinghttps://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx 4/6A bankʼs business activity is frozen should it fail to successfully complete the IBRA recovery processwithinan agreed time frame. Once IBRA has finished finalizing a frozen bank, the business license of said bankwould be revoked, followed by the annulment of the legal institution, and finally liquidation.Appendix:1. Procedure of Banks Under Intensive Supervision and Under Special Surveillance (in Bahasa)(http://www.bi.go.id/en/perbankan/bank-dalam-pengawasan/Documents/ProsedurBankDalamPengawasanKhusus.pdf)2. FAQ regarding the placement of Banks Under Special Surveillance Status (in Bahasa)(http://www.bi.go.id/en/perbankan/bank-dalam-pengawasan/Documents/FAQBankDalamPengawasanKhusus.pdf)BANKINGBanking Channel (/en/kanal/perbankan)About Banking (/en/kanal/perbankan/tentang-perbankan/Pages/Tugas.aspx)News and Info (/en/kanal/perbankan/berita-dan-kegiatan/publikasi)Regulation (/en/kanal/perbankan/regulasi/undang-undang)Data and Statistic (/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-indonesia)Banking Information (/en/kanal/perbankan/Pages/Pedoman-Akuntansi-Perbankan-Indonesia-(PAPI).aspx)(http://www.ojk.go.id/)1/19/22, 8:23 AM Bankinghttps://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx 5/6(http://www.ojk.go.id/) (021) 2960 0000  (021) 385 8321  humas@ojk.go.id (mailto:humas@ojk.go.id)Otoritas Jasa Keuangan, Gedung Soemitro DjojohadikusumoJalan Lapangan Banteng Timur 2-4Jakarta 10710Indonesia  ✉ (https://www.facebook.com/official.ojk) (https://www.instagram.com/ojkindonesia/) (https://twitter.com/OJKINDONESIA) (http://www.youtube.com/otoritasjasakeuangan) (/id/contact.aspx)1/19/22, 8:23 AM Bankinghttps://www.ojk.go.id/en/kanal/perbankan/Pages/Bank-Dalam-Pengawasan-Khusus.aspx 6/6Regulate, Supervise, ProtectCopyright Otoritas Jasa Keuangan 2017 | Site Map (/en/sitemap.aspx) | Disclaimer (/en/Pages/syarat-dan-kondisi.aspx)

Banking: Special Surveillance

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Banking: Special Surveillance

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