The Regulation Of Bank Indonesia No. 10/15/pbi/2008 Year 2008

Original Language Title: Peraturan Bank Indonesia Nomor 10/15/PBI/2008 Tahun 2008

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PBI 10-15-2008 Text copy _?.
Back COUNTRY SHEET Republic of INDONESIA No. 135, 2008 (Additional explanation in the State Gazette of the Republic of Indonesia Number 4895) BANK INDONESIA REGULATION number: 10/15/PBI/2008 REGARDING the CAPITAL ADEQUACY of BANKS with the GRACE of GOD ALMIGHTY, the GOVERNOR of BANK INDONESIA, Considering: a. that in order to create a healthy banking system, and able to thrive and compete nationally and internationally, the structure , requirements, and bank capital adequacy calculations need to be adapted to international standards;
.,, b. that in line with the prevailing international standards, calculation of capital adequacy that serves as a buffer to absorb losses arising from various risks, need to be tailored to the risk profile which includes credit risk, market risk, operational risk, and the risk of other material;
.,, c. that in line with the development of the financial markets, there is a wide range of innovation of financial instruments that can be accounted for as capital;
.,, d. that based on considerations as referred to in letter a, letter b, letter c, and the necessary reorganisation against provisions of the Bank's capital adequacy the Bank Indonesia Regulations in General;
.,, Considering: 1. Act No. 7 of 1992 about banking (State Gazette of the Republic of Indonesia Number 31 in 1992, an additional Sheet of the Republic of Indonesia Number 3472) as amended by Act No. 10 of 1998 (State Gazette of the Republic of Indonesia Number 182 of 1998 Additional sheets of the Republic of Indonesia Number 3790);
., ,2. Act No. 11 of 1999 on Bank Indonesia (the State Gazette of the Republic of Indonesia year 1999 Number 66, an additional Sheet of the Republic of Indonesia Number 3843) as amended by Act No. 3 of 2004 (State Gazette of the Republic of Indonesia number 7 in 2004, an additional Sheet of the Republic of Indonesia Number 4357);
DECIDED:.,, define: BANK INDONESIA REGULATION on CAPITAL ADEQUACY of BANKS.
CHAPTER I GENERAL PROVISIONS article 1 In this Bank Indonesia Regulation is:.,, 1. The Bank is a public Bank as stipulated in Act No. 7 of 1992 about Banking as amended by Act No. 10 of 1998, including foreign bank branches, which carry out the business activities of the conventionally.
., ,2. The company is a legal entity or company owned and/or controlled by the Bank, directly or indirectly, both inside and outside the country, who do business activities in the field of finance, consisting of:.,,.,, a. subsidiary companies (subsidiary company) that is the child of the company with ownership of Banks by more than 50% (fifty percent);
.,, b. Company participation (participation company) is a company with a Bank's ownership of 50% (fifty percent) or less, but the Bank has control of the company;
.,, c. companies with ownership of a Bank of more than 20% (twenty percent) up to 50% (fifty percent) eligible:.,,.,, 1) ownership of the Bank and other parties on the company are each as large; and, 3, 2) each owner of controlling jointly against the child;
.,, d. Other Entities based on financial accounting standards applicable to compulsory consolidated, but not including insurance companies and company owned credit restructuring.
., ,3. Control is the Control as provided for in the provisions of Bank Indonesia concerning the transparency of Bank's financial condition.
., ,4. Credit risk is the risk of loss due to the failure of the opposing party (counterparty) meet their obligations.
., ,5. Market risk is the risk of losses on the balance sheets and accounts of the administrative positions including derivative deals due to a change of market conditions overall, including the risk of a price change option.
., ,6. Operational risk is the risk of loss caused by the inadequate internal processes, failure of internal processes, human error, system failure, and/or the presence of external events that affect the operations of the Bank.
., ,7. Trading Book positions are all financial instruments in the balance sheet and an administrative account includes transactions of derivatives owned for:.,,.,, a. purpose traded and freely transferable or can be covered overall, good value of the transaction for the benefit of its own (proprietary positions), at the request of the customer or intermediary activities (brokering), and in the framework of the establishment of the market (market making), which include:.,, 1) positions possessed for resale in the short term;. , .2) positions possessed for the purpose of short term gain actual and/or potential from the movement of prices (price movement); or., 105.4) positions possessed for the purpose of maintaining the advantages of arbitration (locking in arbitrage profits); b. the purpose of hedging over the other positions in the Trading Book.
., ,8. Banking Book is all the other positions that are not included in the Trading Book.
Article 2, (1) the Bank is obliged to provide a minimum capital of 8% (eight percent) of assets weighted by risk (RWA).
.,, (2) for the Bank that owns and/or controlling of the child, the obligation referred to in subsection (1) applies to the Bank individually and the Bank are consolidated by the company.
.,, (3) to anticipate potential losses are appropriate risk profile of banks, Bank Indonesia can oblige the Bank to provide the minimum capital is greater than the provisions as referred to in paragraph (1) and paragraph (2). (4) the Bank's potential losses as referred to in paragraph (3) proceeds from:.,,.,, a. credit risk, market risk, and operational risk has yet to be fully measured accurately in RWA calculations perform as intended in paragraph (1) and paragraph (2);
.,, b. other material Risks include interest rate risk in the Banking Book, liquidity risk, and the risk concentration; c. the impact of the application of stress testing against the Bank's capital adequacy; and/or d. any other relevant factors.
.,, (5) the provision of the minimum capital as mentioned in subsection (1) is calculated using the percentage of capital adequacy ratio (KPMM).
Article 3 of the Bank's profit distribution are prohibited from engaging in profit distribution is meant to result in Bank capital condition does not meet the conditions referred to in article 2 paragraph (1) and paragraph (2).

CHAPTER II General first part of CAPITAL article 4.,, (1) Capital as referred to in article 2 paragraph (1) and paragraph (2) for the Bank headquartered in Indonesia consists of:.,, a. core capital (tier 1);

b. supplementary capital (tier 2); and c. additional supplementary capital (tier 3).

After taking into account certain factors become a deduction of capital as referred to in article 13 and article 20.
.,, (2) in the calculation of capital consolidation, the company's capital Child components that can be counted as core capital, supplementary capital, and additional supplementary capital must meet the requirements that apply to each component of the capital as applied to banks individually.
Article 5, (1) Capital as referred to in article 2 paragraph (1) for the Branch Office of the bank headquarters is based in a foreign country is a net Fund headquarters (Net Head Office Fund) consisting of:.,, a. Business Fund (Net Inter Office Fund);.,, b. profit and profit was arrested last year after it was issued to the influence of the factors referred to in article 10 paragraph (2);
.,, c. profit tax of 50% (fifty per cent) having issued the influence of the factors referred to in article 10 paragraph (2); d. public capital reserves;

e. reserve for capital purposes;., revaluation, f. fixed assets with coverage and the calculation referred to in article 16 paragraph (2) Letter c; and, g.., the General allowance reserve assets (PPA) of productive assets with the calculations referred to in article 16 paragraph (1) letter d, after taking into account certain factors become a deduction of capital components as set forth in article 10 paragraph (1) letter b, article 13, and article 20.
.,, (2) the calculation of the Fund Business as a component of capital as referred to in paragraph (1) letter a is done as follows:.,,.,, a. in terms of the position of the actual Business Fund (actual Funding Effort) is greater than the stated Business Fund (the Fund declared the effort), then that counts is the Effort of the Fund stated.
.,, b. in terms of actual Business Funding position is smaller than the stated Business Funds, then that counts is the actual Effort Funds.
.,, c. Fund position in terms of the actual Effort is negative, then the amount of the deduction factor component of capital as referred to in paragraph (1).
The second part of core capital, article 6, (1) the Bank is obligated to provide the core capital as referred to in article 4 paragraph (1) letter a least 5% (five per cent) of RWA both individually as well as in the consolidated Company with the child. (2) core capital as referred to in subsection (1) consists of:.,, a. paid-in capital;

b. additional capital reserves (disclosed reserve); and c. capital innovative (innovative capital instruments).
Article 7 paid-in capital as referred to in article 6 paragraph (2) letter a should be filled all the requirements as follows: a. published and been paid in full;

b. permanent;., c. available to absorb losses that occurred before the liquidation or upon liquidation;

.,, d. earnings yield is uncertain and cannot be accumulated between periods; and e. not protected or guaranteed by the Bank or the company.

Article 8 non cumulative preferred stock issued for a specific purpose and has the option to buy (call option), can be recognized as a component of capital as referred to in article 6 paragraph (2) letter a if:.,, a. meets the requirements referred to in article 7 letter a, letter c, letter d, letter e; and, b. the buy option can be executed by meeting the following requirements: 1. only, on the initiative of the Bank;., .2. after a period of 5 (five) years since issuance or publication purposes cancel implemented; 3. has gained the approval of Bank Indonesia; and, 4. do not cause a decrease in the capital under the minimum requirements referred to in article 2 paragraph (1) and paragraph (2).
Article 9 repurchase shares (treasury stock) which has been recognized as a component of capital can only be done by fulfilling the following requirements: a. after a period of 5 (five) years since issuance;

b. for a specific purpose;

c. the obligatory reference to the legislation in force;

d. has gained the approval of Bank Indonesia; and, e.., do not cause a decrease in the capital under the minimum requirements referred to in article 2 paragraph (1) and paragraph (2).
Section 10.,, (1) additional capital Reserves (disclosed reserve) as referred to in article 6 paragraph (2) letter b composed of:.,, a. Enhancer factor:.,, 1. agio;

2. capital contributions;

3. General reserve capital;

4. the purpose of the reserve capital;

5. profit years ago;

6. profit tax of 50% (fifty per cent);

7. the difference less elaboration of financial statements;

8. the Fund's paid-up capital, that meets the following requirements:.,,.,, a) have been paid in full for the purpose of capital increase, but not yet supported by the completeness of requirements to be classified as paid-in capital as the implementation of the general meeting of shareholders as well as the passage of the articles of Association of the authorized agencies;
., a, b) is placed on a special account (escrow account) are not given the yield;
.,, c) may not be withdrawn by the shareholders/nominee shareholders and is available to absorb losses; and d) the use of the Fund should be with the approval of Bank Indonesia.
., ,9. Warrants issued to shareholders as an incentive a Bank of 50% (fifty percent), by fulfilling the following requirements:.,, a) the underlying instrument is common stock;

b) can not be converted into forms other than shares; and, a, c) values calculated are reasonable value of the warrants on the date of its publication;
., .10. Stock options (stock option) program published through employee compensation/stock-based management (employee/management stock option) of 50% (fifty percent), by fulfilling the following requirements:.,, a) the underlying instrument is common stock;

b) can not be converted into forms other than shares; and, a, c) values calculated are reasonable value of stock options at the date of the grant of compensation; b. a deduction factor:.,, 1. disagio;

2. loss years ago;

3. after tax;

4. difference of less elaboration of financial statements;., .5. other comprehensive income is negative, which included losses that have not yet realized that arise from the decline in value of reasonable inclusion that are classified in the group available for sale;
., ,6. the difference between allowance less assets productive assets and reserves of financial assets impairment losses over the productive assets;
., ,7. the difference between the amount of the adjustment was less against the results of the valuation of the financial instruments in the Trading Book and the number of adjustments based on financial accounting standards in force.
.,, (2) in the calculation of income in years past and/or current year as referred to in paragraph (1) letter a number 5 and 6 must be removed from influence:.,, a. calculation of tax-deferred interest (deferred tax);

b. the difference between the value of the fixed assets Revaluation;

c. reasonable value fixed assets;

d. increase or decrease in fair value upon financial obligations; and/or,, e. profit on sale of assets in securitization transactions (gain on sale).
Section 11.,, (1) innovative Capital as referred to in article 6 paragraph (2) Letter c which can be factored as a component of core capital the most high of 10% (ten percent) of the core capital as referred to in article 4 paragraph (1) letter a.
.,, (2) innovative Capital as referred to in subsection (1) must satisfy the following requirements: a whole.,, a. published and has been fully paid;.,, b. has no time frame and there are no requirements that require payment by the Bank in the future;
.,, c. available to absorb losses that occurred before the liquidation as well as at the time of liquidation and subordination, which is clearly stated in the documentation publishing/agreements;
.,, d. earnings yield is uncertain and cannot be accumulated between periods; e. not protected nor guaranteed by banks or companies child;., f., when accompanied with an option to buy (call option), must meet the following requirements:.,,.,, 1. can only be executed at least 10 (ten) years after capital instruments issued;
., ,2. publication of the documentation should state that the option can only be executed upon approval of Bank Indonesia; and, 3. in terms of innovative capital instruments contain features step-up, then the step-up features must meet the following requirements:.,,.,, a) the step-up feature is limited, defined, and clearly stated in the agreement the issuance of the instrument;
., a, b) can only be realised once during the period of the instrument, i.e. after a period of at least 10 (ten) years since published; and, a, c) the magnitude of the step-up feature relevant and in line with market conditions and no bigger than one of the following restrictions:.,, 1) 100 (one hundred) basis points; or 2) 50% (fifty per cent) of margin (credit spread);
., g., has gained the approval of Bank Indonesia to be taken into account as a component of capital.
.,, (3) the execution of the option to buy (a call option) as referred to in paragraph (2) letter f number 1 and number 2 can only be done by the Bank throughout:.,, a. has obtained the approval of Bank Indonesia;.,, b. does not cause a decrease in the capital under the minimum requirements referred to in article 2 paragraph (1) and paragraph (2); and c. be replaced with capital instruments have:., 1., quality equal or better; and, 2. the number of the same or different amounts along does not exceed 10% (ten percent) of the core capital as referred to in article 4 paragraph (1) letter a.
Article 12.,, (1) in calculation of the KPMM in the consolidation, the interests of the minority (minority interest) calculated as core capital as referred to in article 4 paragraph (1) unless there are a part of the interests of the minority who do not comply with the requirements of the components of the core capital.
.,, (2) minority Interests as referred to in paragraph (1) are not accounted for in the core capital in consolidation in the ownership of the Bank on the company's 50% (fifty percent) or less and meet the following conditions:.,,.,, a. There is no entanglement/affiliate between shareholders (minority interest) with the Bank; or, b.., there is no statement or the decision of the general meeting of shareholders (AGM) of the company of the child which States the willingness of the other shareholders (minority interest) to support the Bank's business group capital.
Article 13 core capital as referred to in article 4 paragraph (1) letter a calculated with factors such as: a. a deduction of Goodwill;

b. other intangible Assets; and/or c. other core capital deduction Factor referred to in article 20.

The third part of the Supplementary clause 14 Capital.,, (1) Modal auxiliaries as referred to in article 4 paragraph (1) letter b can only be accounted the most high of 100% (one hundred percent) of the core capital as referred to in article 4 paragraph (1) letter a. (2) the Modal auxiliaries as referred to in subsection (1) consists of:.,, a. complementary Capital top level (upper tier 2); and b. supplementary Capital level down (lower tier 2).
Section 3.,, (1) complementary Capital top level (upper tier 2) referred to in Article 14 paragraph (2) letter a in the form of capital instruments referred to in article 16 paragraph (1) letter a should be filled all the requirements as follows:.,, a. published and has been fully paid;.,, b. has no time frame and there are no requirements that require payment by the Bank in the future;
.,, c. available to absorb losses in terms of the amount of losses the Bank exceeds profits on hold and backup-backup that includes core capital although the Bank has not yet been liquidated and subordination, which is clearly stated in the documentation publishing/agreements;
.,, d. payment of principal and/or suspended and accumulated yield between periods (cummulative) when:.,,.,, 1. payment in question can cause KPMM KPMM individually or consolidated basis did not meet the applicable provisions; 2. The Bank is in a State of loss; or, 3. Bank profitability conditions do not allow for pay offs; e. not protected nor guaranteed by banks or companies child;., f., when accompanied with an option to buy (call option), must meet the following requirements:.,,.,, 1. can only be executed at least 10 (ten) years after capital instruments issued;
., ,2. publication of the documentation should state that the option can only be executed upon approval of Bank Indonesia; and

., ,3. in terms of capital instruments contain features step-up, then the step-up features must meet the following requirements:.,,.,, a) the step-up feature is limited, defined, and clearly stated in the agreement the issuance of the instrument;
., a, b) can only be realised once during the period of the instrument, i.e. after a period of at least 10 (ten) years since published; and, a, c) the magnitude of the step-up feature relevant and in line with market conditions and no bigger than one of the following restrictions:.,, 1) 100 (one hundred) basis points; or 2) 50% (fifty per cent) of margin (credit spread);
., g., has gained the approval of Bank Indonesia to be taken into account as a component of capital except pelimpahan of innovative capital that exceeds the limits of innovative capital.
.,, (2) the execution of the option to buy (a call option) as referred to in paragraph (1) letter f number 1 and number 2 can only be done by the Bank throughout:.,, a. has obtained the approval of Bank Indonesia;.,, b. does not cause a decrease in the capital under the minimum requirements referred to in article 2 paragraph (1) and paragraph (2); or c. be replaced with capital instruments have:., 1., quality equal or better; and, 2. in a number of the same or different amounts does not exceed the limits of capital throughout the complement referred to in Article 14 paragraph (1).
Article 16 (1) complementary Capital top level (upper tier 2) includes:.,,.,, a. instrument of capital in the form of stock or other capital instruments which meet the requirements referred to in Article 15;
.,, b. part of innovative capital that cannot be accounted for in the core capital; c. fixed assets revaluation, which includes:.,,.,, 1. the difference in the value of fixed assets revaluation which had previously been classified to balance profits, amounting to 45% (forty five percent); and, 2. the increase in value of fixed assets upon reasonable unrealized which had previously been classified to balance profits, amounting to 45% (forty five percent);
.,, d. General allowance reserve assets over the productive assets of the mandatory amount formed with high amounting to 1.25% (one comma twenty-five percent) of RWA for credit risk;
.,, e. other comprehensive income the highest of 45% (forty five per cent), i.e. in the form of profits that have not realized that arise from the inclusion of a reasonable value that are classified in the group available for sale.
.,, (2) the difference between the more general reserve mandatory was formed from the limitation referred to in subsection (1) the letter d can be taken into account as a deduction factor calculation of RWA for credit risk.
Article 17.,, (1) complementary Capital level down (lower tier 2) referred to in Article 14 paragraph (2) letter b can only be accounted the most high by 50% (fifty percent) of the core capital as referred to in article 4 paragraph (1) letter a.
.,, (2) complementary Capital level down (lower tier 2) referred to in subsection (1) must satisfy the following requirements: a whole.,, a. published and has been fully paid;.,, b. has the least agreement period of 5 (five) years and can only be repaid after gaining the approval of Bank Indonesia;
.,, c. available to absorb losses at the time of liquidation and subordination, which is clearly stated in the documentation publishing/agreements;
.,, d. payment of principal and/or suspended and accumulated yield between periods (cummulative), including the payment at maturity, if:.,,.,, 1. payment in question can cause KPMM KPMM individually or consolidated basis did not meet the applicable provisions; 2. The Bank is in a State of loss; or, 3. Bank profitability conditions do not allow for pay offs; e. not protected nor guaranteed by banks or companies child;., f., when accompanied with an option to buy (call option), must meet the following requirements:.,,.,, 1. can only be executed at least 5 (five) years after the instrument of capital was published;
., ,2. publication of the documentation should state that the option can only be executed upon approval of Bank Indonesia; and, 3. in terms of capital instruments contain features step-up, then the step-up features must meet the following requirements:.,,.,, a) the step-up feature is limited, defined, and clearly stated in the agreement the issuance of the instrument;
., a, b) can only be realised once during the period of the instrument, i.e. after a period of at least 5 (five) years since published; and, a, c) the magnitude of the step-up feature relevant and in line with market conditions and no bigger than one of the following restrictions:.,, 1) 100 (one hundred) basis points; or 2) 50% (fifty per cent) of margin (credit spread);
., g., has gained the approval of Bank Indonesia to be taken into account as a component of capital.
.,, (3) the execution of the option to buy (a call option) as referred to in paragraph (2) letter f number 1 and number 2 can only be done by the Bank throughout:.,, a. has obtained the approval of Bank Indonesia;.,, b. does not cause a decrease in the capital under the minimum requirements referred to in article 2 paragraph (1) and paragraph (2); or c. be replaced with capital instruments have:., 1., quality equal or better; and, 2. in a number of the same or different amounts does not exceed the limits of capital along a complement level down (lower tier 2) as stipulated in article 5 clause (1).
.,, (4) the amount calculated as supplementary capital in the lower level (lower tier 2) supplementary capital amount is lower level (lower tier 2) minus the amortization is calculated using the straight line method.
.,, (5) Amortization as referred to in paragraph (4) is done for the rest of period instruments in 5 (five) years.
.,, (6) in case there is the option, then the time period until the Bank can execute that option is the rest period of the instrument.
Article 18 the placement of funds on loans or subordinated bonds subordinated or which meet the criteria of modal auxiliaries on the other Bank are taken into account as a factor a deduction for the loan or bond of subordination subordination into a complementary component of the recipient Bank/issuer.

Article 19 Section of supplementary capital that has formed the reserve payment (sinking fund) are not counted as supplementary capital components, when Bank:.,, a. has determined to set aside reserve funds and manage repayment (sinking fund) that specifically; and, b.., has published the formation of reserves of repayment (sinking fund), included in the general meeting of the holders of the bonds (BONDHOLDERS).
Article 20.,, (1) certain factors become a deduction of capital components as referred to in article 4 paragraph (1) includes:.,, a. inclusion of the Bank include:.,,.,, 1. all investment Banks to the company of the child unless the inclusion of capital while a credit restructuring;
., ,2. the entire investment to the company or legal entity with ownership of a Bank of more than 20% (twenty percent) up to 50% (fifty percent) but the Bank has no Control; 3. the whole inclusion to the insurance company;
.,, b. lack of capital (shortfall) of the minimum solvency ratio level of compliance (Risk Based Capital/RBC minimum) at the insurance company that is owned and controlled by the Bank; c. securitization exposures.
.,, (2) the reduction referred to in paragraph (1) letter a and letter b taken into account of 50% (fifty percent) of the core capital as referred to in article 4 paragraph (1) letter a and 50% (fifty percent) of the modal auxiliaries as referred to in article 4 paragraph (1) letter b.
.,, (3) the entire capital deduction factor as referred to in paragraph (1) letter a and letter b are not counted again in RWA for credit risk.
Part four additional supplementary capital Article 21.,, (1) additional supplementary capital as referred to in article 4 paragraph (1) the letter c can be used throughout the meet the following criteria:.,, a) is used only to take into account market risk;.,, b) does not exceed 250% (two hundred and fifty per cent) from the core capital allocated to Market risk; and, c), the amount of supplementary capital and highest additional supplementary capital in the amount of 100% (one hundred percent) of the core capital as referred to in article 4 paragraph (1) letter a.
.,, (2) additional supplementary capital (tier 3) referred to in subsection (1) must satisfy the following requirements: a whole.,, a. published and has been fully paid;.,, b. has the least agreement period of 2 (two) years and can only be repaid after gaining the approval of Bank Indonesia;
.,, c. available to absorb losses at the time of liquidation and subordination, which is clearly stated in the documentation publishing/agreements;
.,, d. payment of principal and/or suspended and accumulated yield between periods (cummulative), including the payment at maturity, if:.,,.,, 1. payment in question can cause KPMM KPMM individually or consolidated basis did not meet the applicable provisions; 2. The Bank is in a State of loss; or, 3. Bank profitability conditions do not allow for pay offs; e. not protected nor guaranteed by banks or companies child;., f., when accompanied with an option to buy (call option), must meet the following requirements:.,,.,, 1. can only be executed at least 2 (two) years after capital instruments issued;
., ,2. publication of the documentation should state that the option can only be executed upon approval of Bank Indonesia; and, 3. in terms of capital instruments contain features step-up, then the step-up features must meet the following requirements:.,,

.,, a) features step-up limited, defined, and clearly stated in the agreement the issuance of the instrument;
., a, b) can only be realised once during the period of the instrument, i.e. after a period of at least 2 (two) years since published; and, a, c) the magnitude of the step-up feature relevant and in line with market conditions and no bigger than one of the following restrictions:.,, 1) 100 (one hundred) basis points; or 2) 50% (fifty per cent) of margin (credit spread);
., g., has gained the approval of Bank Indonesia to be taken into account as a component of capital unless the component additional supplementary capital (tier 3) as referred to in paragraph (4) the letter b and the letter c.
.,, (3) the execution of the option to buy (a call option) as referred to in paragraph (2) letter f number 1 and number 2 can only be done by the Bank throughout:.,, a. has obtained the approval of Bank Indonesia; and, b.., do not cause a decrease in the capital under the minimum requirements referred to in article 2 paragraph (1) and paragraph (2). (4) additional supplementary capital (tier 3) includes:.,, a. Loans subordinated or short-term subordinated bonds;.,, b. supplementary Capital which cannot be allocated to cover the burden of capital for credit risk and/or the burden of capital for operational risk but qualify as supplementary capital (tier 2 eligible but unused); and, c.., part of the supplementary capital level down (lower tier 2) that exceed the limits on capital complementary level down (lower tier 2).
Article 22 in the calculation of the KPMM in the consolidation, for innovative component, complementary capital top level (upper tier 2) capital, complement levels down (lower tier 2), and additional supplementary capital (tier 2), the Bank is obligated to deliver the supporting data which showed that the company's capital component of the Child taken into account have been filled all requirements as a component of capital.

CHAPTER III RISK-WEIGHTED ASSETS ACCORDING to the first part of article 23 Public RWA as referred to in article 2 paragraph (1) and paragraph (2) composed of: a. RWA for credit risk;

b. RWA for operational risk;

c. for market risk RWA.

Pasal 24.,, (1) every Bank is obligated to take into account RWA for credit risk and operational risk for the RWA.
.,, (2) to market risk RWA is only obliged to be taken into account by banks that meet certain criteria.
Article 25 specific Criteria referred to in Article 24 paragraph (2) is: a. the Bank individually meet one of the following criteria:.,,.,, 1. Banks with total assets of Rp 10.000.000.000.000 RP (ten trillion rupiah) or more;
., ,2. Foreign Exchange Bank with the position of the financial instruments in the form of securities and/or derivatives in the Trading Book transactions of Rp RP 20.000.000.000 (twenty billion dollars) or more;
., ,3. The Bank is not a Bank foreign exchange positions with financial instruments in the form of securities and/or transactions interest rate derivatives in the Trading Book amounted to Rp 25.000.000.000 RP (twenty five billion rupiah) or more; and/or;
.,, b. Banks which are consolidated with the child meets one of the following criteria:.,,.,, 1. Foreign Exchange Bank that were consolidated with the child has the position of financial instruments in the form of financial instruments, including securities that are exposed to the risk of equity and/or transaction of derivatives in the Trading Book and/or financial instruments exposed to the risk of commodity in the Trading Book and the Banking Book of Rp RP 20.000.000.000 (twenty billion dollars) or more;
., ,2. The Bank is not a foreign exchange Bank that were consolidated with the child has the position of financial instruments in the form of financial instruments, including securities that are exposed to the risk of equity and/or transaction of derivatives in the Trading Book and/or financial instruments exposed to the risk of commodity in the Trading Book and the Banking Book of Rp 25.000.000.000 RP (twenty five billion rupiah) or more.
.,, c. Obligations to take into account market risk as referred to in article 24 paragraph (2) apply also to the Bank has a network of offices and/or company Children in other countries as well as branch offices of the Bank headquarters is based in foreign countries.
Article 26 financial assets which at the time of initial recognition designated as financial assets are measured at fair value through the income statement and classified in group credit traded excluded from coverage of the Trading Book.

Article 27 securities in the Trading Book referred to in Article 25 letters a number 2 and number 3, letter b number 1 and number 2 only includes securities which are classified in the Group traded.

Article 28 the Bank after the merger, consolidation, acquisition or meets the criteria referred to in Article 25, at least three (3) monthly reporting period within 6 (six) months after the first merger, consolidation, or acquires a mandatory risk effectively declared the market in calculation of KPMM since the 7th month (seven) after the merger, consolidation, or acquires declared effective.

Article 29 the Bank has fulfilled the criteria referred to in Article 25 and the Bank as stipulated in article 28 a mandatory stay take into account market risk in capital adequacy even though the next Bank no longer meets the criteria referred to.

The second part of the credit risk of article 30 (1) in calculation of the RWA for credit risk, the Bank uses:.,, a. standardized approach (Component Approach); and/or b. the Internal Rating based Approach (Internal Rating based Approach).
.,, (2) a Bank that uses the approach referred to in paragraph (1) letter b obliged to obtain prior approval from Bank Indonesia.
.,, (3) further Arrangements regarding the use of each approach as referred to in paragraph (1) and paragraph (2) is set further in the circular letter of Bank Indonesia.
The third part of operational risk article 31 (1) in calculation of the RWA to operational risk, the Bank uses:.,, a. Basic Indicator Approach (Basic Indicator Approach);

b. the standard approach (Component Approach); and/or c. more complex Approaches (Advanced Measurement Approach).
.,, (2) a Bank that uses the approach referred to in paragraph (1) letter b and c letters obligatory obtaining prior approval from Bank Indonesia.
.,, (3) further Arrangements regarding the use of each approach as referred to in paragraph (1) and paragraph (2) is set further in the circular letter of Bank Indonesia.
The fourth part of article 32. Market risk, market risk (1) must be taken into account by the Bank individually and is consolidated with the company's Child is:.,, a. interest rate risk; and/or b. exchange rate risk.
.,, (2) the mandatory consolidation of Bank equity risk and/or commodities risk in addition to the risk of the market as referred to in subsection (1) if it meets the following criteria:.,,.,, a. has a Child Company exposed risk equity and/or the risk of commodity; and, b.., in the consolidated Company with the Children meet the criteria as stipulated in article 25 of the letter b.
Article 33 (1) in calculation of the RWA to market risks, the Bank uses:.,, a. standard method (Standard Method); and/or b. the Internal Model (Internal Model).
.,, (2) a Bank that meets the criteria referred to in Article 25, obliged in advance using the standard method in Market risk.
.,, (3) a Bank that uses the approach referred to in paragraph (1) letter b obliged to obtain prior approval from Bank Indonesia.
.,, (4) further Arrangements regarding the use of each method as referred to in paragraph (1) and paragraph (2) is set in a circular letter of Bank Indonesia.
CHAPTER IV REPORTING Article 34.,, (1) a Bank that meets the criteria referred to in Article 25 is obligated to report the calculation of KPMM taking into account market risk.
.,, (2) the preparation and submission of the report of the KPMM calculation taking into account market risk as referred to in paragraph (1) refers to the mandatory provisions of the periodic reports of public Banks.
.,, (3) the report that is associated with the Internal Model is quarterly for the first time drawn up at the end of quarter after an Internal Model is used for the calculation of KPMM.
Chapter V TRANSITIONAL PROVISIONS Article 35 capital Instruments which have been approved by Bank Indonesia as a complementary component or components and additional supplementary capital before the enactment of this provision still counts as a component of capital up to the expiry of the period of the instrument.

CHAPTER VI SANCTIONS Article 36 banks that do breach the provisions as set forth in article 3, article 6 paragraph (1), article 9, article 11 paragraph (1) and paragraph (3), article 15 paragraph (2), article 14 paragraph (1), article 17 paragraph (1) and paragraph (3), section 21 subsection (1) and paragraph (3), article 22, article 23, Article 28 Article 29 Article 30 , Article 31, article 32 and article 33 administrative penalties in the form of: a. a written reprimand;

b. freezing of certain business activities;

c. a decrease in the level of health of the Bank; and/or, d.., the inclusion of the administrators and shareholders of the Bank or in the list of people prohibited from becoming a shareholder and administrator of the Bank, as stipulated in article 52 Act No. 7 of 1992 about Banking as amended by Act No. 10 of 1998.
Article 37 banks that cannot meet the conditions as referred to in article 2 paragraph (1) and paragraph (2) is placed in a special supervision as set forth in the provisions of Bank Indonesia concerning follow-up monitoring and the determination of the status of the Bank.

Article 38 Banks that violate the provisions of the reporting as stipulated in article 34 penalties as set forth in the applicable provisions concerning periodic reports public Bank.


Article 39 banks that do trade up in a group of financial assets available for sale, which is done with a pattern resembling a trade over the financial assets in the Group: a. traded in significant quantities; and/or,, b. in high frequency, penalized in the form it is not permissible to classify financial assets purchases next in the group available for sale, for 6 (six) months from the date of the construction of the letter issued by Bank Indonesia.
Article 40 in the event that the Bank take any action referred to in Article 39 for the second time, then the Bank may not be penalized for pegging the purchase of financial assets in the Group's next available for sale during 1 (one) years counted from the date of the letter issued by the construction of the Bank Indonesia.

Article 41 in the event that the Bank take any action referred to in Article 39 more than twice, then the Bank may not be penalized for pegging the purchase of financial assets in the Group's next available for sale during the 2 (two) years counted from the date of the letter issued by the construction of the Bank Indonesia.

CHAPTER VII PROVISIONS COVER Article 42 provisions on treatment of interbank placements in the form of subordinated loans or subordinated bonds as a deduction factor loan subordinated bond issuance for the Bank or the Publisher as stipulated in article 18, apply for the placement is done after this provision applies.

Article 43 with the introduction of the regulation of Bank Indonesia, then:.,, Bank Indonesia Regulations a. number 3/21/PBI/2001 dated December 13, 2001 capital adequacy of public Bank;
.,, b. Article 6 and article 7 of the regulation of Bank Indonesia No. 8/6/PBI/2006 dated 30 January 2006 concerning the implementation of Consolidated Risk Management for banks that did the Company control of the child;
.,, c. Article 2, article 3, article 4, article 5, article 7, article 8, article 10, article 18, article 31, article 34, article 35, article 36, and article 37 of the regulation of Bank Indonesia No. 9/6/PBI/2007 dated November 1, 2007 on capital adequacy public Bank taking into account market risk;
.,, d. Figure III Bank Indonesia circular letter number 26/1/BPPP dated 29 May 1993 capital adequacy subject to public Bank, revoked and declared inapplicable.

Article 44 the Bank Indonesia Regulations with the introduction of this then:.,, a. provisions of the implementation Regulations of Bank Indonesia No. 9/6/PBI/2007 dated November 1, 2007 on capital adequacy public Bank taking into account market risk;
.,, b. provisions implementing regulation of Bank Indonesia No. 8/6/PBI/2006 dated 30 January 2006 concerning the implementation of Consolidated Risk Management for banks that did the Company control of the child; stated still remains valid along does not conflict with the regulations of Bank Indonesia.

Article 45 of the regulation of Bank Indonesia this came into force on January 1, 2009.

In order to make everyone aware of it, ordered the Bank Indonesia Regulations enactment this by its placement in the State Gazette of the Republic of Indonesia.

.,, Set in Jakarta on 24 September 2008, BANK INDONESIA GOVERNOR BOEDIONO Enacted in Jakarta on September 24, 2008 the MINISTER of LAW and HUMAN RIGHTS REPUBLIC of INDONESIA ANDI MATTALATA RI STATE GAZETTE SUPPLEMENTARY No. 4895 (explanation of the 2008 State Gazette Number 135) EXPLANATION of BANK INDONESIA REGULATION number: 10/15/PBI/2008 REGARDING the CAPITAL ADEQUACY of the BANK'S GENERAL public. In order to create a healthy banking system and able to thrive and compete nationally and internationally, the structure, requirements, and bank capital adequacy calculations need to be adapted to the prevailing international standards. International standards which became reference in this adjustment is "International convergence of Capital Measurement and Capital Standards: A Revised Framework" or better known Basel II and International Accounting Standard (IAS) adopted in the statement of financial accounting standards (PSAK), namely among others IAS 39 adopted in PSAK No. 55.
., The capital adequacy Calculation, is one of the fundamental aspects in the implementation of the principle of prudence. Capital serves as a buffer to absorb losses that arise from the various risks. Therefore, in the calculation of capital adequacy in accordance with international standards, banks need to adjust capital adequacy the Bank risk profiles that include credit risk, market risk, operational risk, and the risk of other material good measurable quantitative or qualitative assessment based on.
.,, In addition, world financial markets are increasingly experiencing rapid development. The development of financial markets led to a wider variety of innovation of financial instruments that can be counted as capital.
.,, On the other hand, the current applicable provisions related to capital adequacy still scattered on several separate provisions, so as to facilitate users in understand necessary merging those settings into one provision.
.,, With respect to such matters, it is necessary the settings back against provisions of the capital adequacy Rules in a public Bank Bank Indonesia.

The SAKE ARTICLE ARTICLE article 1., pretty clear, article 2, paragraph (1).,, weighted by risk Assets (RWA) includes RWA RWA for credit risk, market risk, and for the RWA for operational risk. Paragraph (2).,, is quite clear. Paragraph (3), quite obviously, subsection (4),, letter a., of risk, yet can be fully measured accurately among others caused by the weakness of the risk control systems for credit risk, market risk, and operational risk. The letter b.,, is quite clear. The letters c, a, is quite clear. D.,, is quite clear. Subsection (5), KPMM, the ratio is a comparison between the capital with RWA.

The ratio of KPMM in the consolidation carried out by way of comparing the capital consolidation by RWA in consolidation.

Section 3.,, is the distribution of profit among other dividend payments, the payment of bonuses to the caretaker (management fee).

Article 4, article 5, pretty clear., paragraph (1), letter a, the Business Fund, referring to the provisions of Bank Indonesia concerning the requirements and procedures for the opening of a branch office, branch office, and representative offices of the bank based abroad.

The Fund Business is a net funds that come from the Head Office of the Bank on foreign bank branch offices after deducting placement of branch offices of foreign banks in the Bank's offices abroad are concerned, which should always be recorded for branch offices of foreign banks operating in Indonesia and has been declared (declared Dana Usaha). The letter b.,, is a "profit on hold" is the balance of the net profit after tax was reduced by its headquarters decided to put on hold its Office in Indonesia.

The definition of "profit last year" is the entire net profit year-years ago after deducting tax, and its use has not been established by Headquarters.

In the event that the Bank has a balance loss years ago, then the rest of the loss factor of a deduction of capital. The letters c, a, the definition of "profit tax" is the profit earned in a fiscal year running after reduced tax estimates.

In the case in the book run Banks suffered losses, then the whole of the loss factor of a deduction of capital. D., letter, the definition of "public capital reserves" are reserves formed of profit allowance being detained or of profit last year after deducting taxes, and got the approval of the Headquarters as General reserves of capital. The letter e, the definition of "reserve capital purposes" is a backup that was created from the profit allowance withheld or from a profit last year after deducting tax set aside for a specific purpose and has got the approval of headquarters. The letter f,, is quite clear. The letter g.,, is quite clear. Subsection (2), the determination of the amount of funding the venture, stated refer to the provisions of Bank Indonesia regarding foreign loans.

Article 6, paragraph (1), clear Enough, paragraph (2) letter a,,.,, paid-in capital as a component of Treatment refer to the applicable statutory provisions and the applicable financial accounting standards on accounting of equity.

That included, among others, paid-in capital: 1. common stock;., .2. preferred stock (which entitles the holder to receive a dividend the shareholder ahead of other classifications) non cumulative (Perpetual non cummulative preference share); or 3. non cumulative preferred stock issued for a specific purpose with the call option. The letter b.,, is quite clear. The letters c, a, the definition of "innovative capital" are debt instruments which have characteristics of capital (hybrid instruments).

Innovative capital include:.,, 1. Debt instruments which have characteristics of capital, is subordinated, not having a period, and the payment of yield cannot be accumulated (Perpetual subordinated debt non cummulative).
., ,2. Other hybrid instruments that do not have a period the yield payment and cannot be accumulated (perpetual and non-cummulative).

Article 7, letters a.,, is quite clear. The letter b.,, is quite clear. The letters c, a, is quite clear. D.,, is quite clear. The letter e.,, included in the category of protected or guaranteed by the Bank or the company of Children, namely protection or assurances received from the other party but is done through a Bank or a company of children, such as premium/fee in order to guarantee paid by banks or companies.

Article 8

.,, Including as a special purpose that is for the purpose of merger, acquisition, or consolidation.

Article 9, letter a, letter b, pretty clear, specific objectives, to buy back stock that has been recognized as a component of paid-in capital as stock inventory in order to program the employee/management stock option or avoid an attempt take over. The letter c., according to law No. 40 year 2007 on limited liability company applies when it stated that the amount of the nominal value of all shares bought back by the company does not exceed 10% (ten per cent) of the capital. Shares bought back can only be controlled by the company the longest of three (3) years. D.,, is quite clear. The letter e.,, is quite clear, article 10, paragraph (1), letter a, number 1.,.,, is a "agio" is the difference more deposit capital received by the Bank at the time of the issuance of the shares because the market price of the stock is higher than the nominal value. Figure 2.,, is a "capital contribution" is the capital of the acquired stock donations back from the Bank including the difference between the value that was recorded with the selling price if the shares were sold. Number 3, the definition of "public capital reserves" are reserves formed of profit allowance being detained or of profit last year after deducting taxes, and got the approval of the general meeting of shareholders (GMS) or General Member meeting as a reserve capital. 4.,, is a "capital destination backup" backup is formed from the profit allowance withheld or from a profit last year after deducting tax set aside for a specific purpose and has received the approval of the GENERAL MEETING or meeting of members. Number 5, about the year, profit after tax includes:.,, a. profit last year, i.e. the entire net profit year-years ago after deducting tax, and its use has not been established by the GENERAL MEETING OF SHAREHOLDERS or members;
.,, b. profit withheld (retained earnings) that the balance of the net profit after tax is reduced by the GMS or member meeting decided not to be shared. Number 6.,, is a "profit tax" is the profit earned in a fiscal year running after reduced tax estimates. Figure 7.,, is a "difference of less elaboration of financial statements" is foreign exchange arising from translation of financial statements of Bank branch offices and/or overseas Child Companies as set forth in the applicable financial accounting standards regarding the translation of the financial statements in foreign currencies. Number 8, when Bank Indonesia based on research, potential shareholders of the Bank or the Fund's paid-up capital is known to not qualify as shareholders or as capital then the funds could not be recognized as a component of capital. Figure 9.,, refers to the general definition in force in the capital markets, which is a "warrant" is an effect produced by a company that give the holder the right to effect to order stock from the company at a price and a specific time period. 10.,, is quite clear. Letter b., 1., letters, numbers, what is meant by "disagio" is the difference between less deposit capital received by the Bank at the time of the issuance of shares for stock market price is lower than the nominal value. Figure 2.,, is a "loss of last years" is the entire loss the Bank is entered in the years ago. Figure 3.,, is a "after tax" is a loss that is entered in the Bank for the fiscal year running. 4.,, is a "difference of less elaboration of financial statements" is foreign exchange arising from translation of financial statements of Bank branch offices and/or overseas Child Companies as set forth in the applicable financial accounting standards regarding the translation of the financial statements in foreign currencies. Number 5, other comprehensive income is negative equity in the post that aims to accommodate the decline in the value of the reasonable over the inclusion in the group available for sale.

What is meant by "include groups classified in available for sale" is the inclusion of stocks that meet the criteria for the use of a method of cost and fair value. Number 6.,, is a "difference between allowance less assets productive assets and reserves of financial assets impairment losses over the productive assets" is the difference between total less allowance assets (General and special reserves reserves over all productive assets) that must be established in accordance with the Bank Indonesia prevailing with a total reserve of financial assets impairment losses (impairment) over all the assets of productive (individually and collectively) financial accounting standards in force. Figure 7., less Difference, this arises because of the amount of the adjustment against the results of the valuations (mark to market) of financial instruments in the Trading Book consider various specific factors, among others, because of less liquid position, exceed the amount of customisation required according to applicable financial accounting standards regarding financial instruments, in particular the measurement of financial instruments that are measured based on the fair value.

According the guidelines of the Accounting Banking Indonesia (PAPI), the adjustment against the results of the valuation of financial instruments will directly reduce or increase the value of the financial instruments are recorded. Paragraph (2) letter a,,.,, tax-deferred interest (deferred tax) is incurred as a result of the transactions the application of PSAK concerning income tax accounting.

In the calculation of KPMM individually influence tax-deferred interest incurred amounting to the difference in net assets tax-deferred interest tax-deferred interest obligations is subtracted.

In terms of tax-deferred interest liabilities exceed assets tax-deferred interest, then the influence of tax-deferred interest calculations to be issued from profit/loss last year or the current year amounted to zero.

In the calculation of KPMM in a tax-deferred interest asset consolidation, one company may not remove at each other with tax-deferred interest liability of other companies in the business group of the Bank.

Therefore, the influence of tax-deferred interest in the calculation of the KPMM in the consolidation should be calculated and issued separately for each entity.

With the introduction of the tax-deferred interest impact of the calculation of the profit or loss of the tax-deferred interest assets, then it is not taken into account in the calculation of the RWA. The letter b.,, is a "difference in value of fixed assets Revaluation" is the difference between the value of the fixed assets revaluation which are classified to balance profit in terms of fixed assets Revaluation do Bank before 16 of PSAK enacted and subsequently using the method of cost in the fixed assets measurement.

Included in this component are more fixed assets Revaluation difference remaining in the implementation of quasi reorganization. The letter c., of this Treatment, reserved for Banks that use fixed assets Revaluation model as set forth in PSAK NO. 16 on fixed assets.

Calculation of the reasonable value of fixed assets refers to the applicable financial accounting standards regarding fixed assets. D., letter, this happens when the Bank sets out to measure the fair value of financial liabilities through profit loss (fair value option) financial accounting standards in force. The letter e.,, is a "profit on sale of assets in securitization transactions (gain on sale)" is the profit the Bank as lender the origin (the originator) on sale of assets in securitization transactions (gain on sale) were sourced from the capitalisation of future income (expected future margin) or capitalization of income from the provision of the service (servicing income).

Article 11, paragraph (1).,, is quite clear. Subsection (2), the letter a, letter b, quite clearly, is quite clear. The letters c, a, is quite clear. D.,, is quite clear. The letter e.,, included in the category of protected or guaranteed by the Bank or the company of Children, namely protection or assurances received from the other party but is done through a Bank or a company of children, such as premium/fee in order to guarantee paid by banks or companies. The letter f.,, 1.,, is quite clear. Figure 2.,, is quite clear. Figure 3.,, is the step-up feature is a feature that promises a rise in interest rates when the option to buy is not executed on a predetermined period of time.
.,, The letter a),, is quite clear. The letter b), quite clearly, the letter c),, is a "margin (credit spread)" is the difference between the rate of yield/interest rate instruments is the interest rate of the instrument not at risk (risk free).

Illustration of the determination of the limits step up-step-up agreement are as follows: 1. Step-up top of fixed interest rates (fixed interest rates), for example:.,, a. step-up that can be realised after 10 years of publishing does not surpass 100 100 bp (bp = 1%), previous interest rate * (1-10 years) = 7% fixed interest rate * interest rate recently (since the year 11) = 7% + 1% = 8% fixed interest rate, b.., step-up that can be realised after 10 years of publishing does not surpass 50% (fifty per cent) of margin (credit spread) early. Interest rate *, before (year 1 to 10) = 7% fixed interest rate, for example, at the time of publication, the interest rate of the instrument are not at risk (risk free) = 6%, then 50% (fifty per cent) of margin (credit spread) was 50% x 7% (-6%) = 0.5% * interest rate recently (since the year 11) = 7% + 0.5% = 8.5% fixed interest rate 2. Step-up interest rates over floating (floating interest rates), there are two examples: a. If the reference rate is not changed.,,.,, 1) step-up that can be realised after 10 years of publishing does not surpass 100 BP.,,.,, * interest rate before (year 1-10) = 10 year Bond ’ Govt + 1.5% spread (spread at the time of issuance of the instrument)

.,, * Interest rate recently (since the year 11) = 10 year Bond ’ Govt + 2.5% spread (spread early 1.5% + 1%)., .2) step-up that can be realised after 10 years of publishing does not surpass 50% (fifty per cent) of margin (credit spread) the beginning.,,.,, * interest rate before (year 1-10) = 10 year Bond ’ Govt + 1.5% spread (spread at the time of issuance of the instrument) = 7%., for example, with an interest rate of the instrument not at risk (risk free) = 6% , then 50% (five · percent) of margin (credit spread) was 50% x 7% (-6%) = 0.5%.,, * interest rate recently (since the year 11) = 10 year Govt Bond ’ + 2% spread (spread early 1.5% + 0.5%) b. If reference rate change.,,.,, 1) step-up that can be realised after 10 years of publishing does not exceed 100 BP.,, an increase in interest rates should not exceed 1% (one percent) of the early spread (at the time of issuance of the instrument) using the reference rate is new compared to the reference rate at the time of issuance of the instrument.

For example, the reference rate of the 10-year Bond ’ Gov t turn into LIBOR interest rate * (1-10 years), the assumption at the time of issuance of the instrument in the interest rate is 7% (10 year Bond ’ Gov t 5% spread plus 2%). While at the same time, LIBOR is 5.5%. Thus, the LIBOR spread at a time when the interest rate is 7% 0.9% (7%-5.5%).
.,, * Interest rate recently (since the year 11) = LIBOR + 2.5% spread (spread early 1.5% + 1%)., .2) step-up that can be realised after 10 years of publishing does not exceed 50% (fifty per cent) of margin (credit spread) the beginning.,, an increase in interest rates may not exceed 50% (fifty percent) margin (credit spread) the beginning of the spread of early (at the time of issuance of the instrument) and reference the new rate compared to the reference rate at the time of issuance of the instrument.

For example, the reference rate of the 10-year Bond ’ Gov t turn into LIBOR interest rate * (1-10 years), the assumption at the time of issuance of the instrument in the interest rate is 7% (10 year Bond ’ Gov t 5% spread plus 2%). While at the same time, LIBOR is 5.5%. Thus, the LIBOR spread at a time when the interest rate is 7% 0.9% (7%-5.5%).

For example, with the interest rate of the instrument not at risk (risk free) = 6%, then 50% (fifty per cent) of margin (credit spread) was 50% x 7% (-6%) = 0.5%.
.,, * Interest rate recently (since the year 11) = LIBOR + 2% spread (spread early 1.5% + 0.5%).,, 3) step up with a change of fixed interest rates into floating interest rates.,,.,, a. step-up that can be realised after 10 years of publishing does not exceed 100 BP.,, an increase in interest rates should not exceed 1% (one percent) of the early spread (at the time of issuance of the instrument) and floating interest rates that were used after the 10th year compared to interest rates at the time of issuance of the instrument.

For example, change from fixed rate into a floating rate (LIBOR + Spread) * interest rate before (year 1 to 10) = 7% fixed rate, LIBOR 5.5%, the assumption at the time of issuance of the instrument. Thus, at interest rates of 7% then spread over LIBOR is 1.5%.
.,, * Interest rate recently (since the year 11) = LIBOR + 2.5% spread (spread early 1.5% + 1%).
.,, b. step-up that can be realised after 10 years of publishing does not exceed 50% (fifty per cent) of margin (credit spread) the beginning.,, an increase in interest rates may not exceed 50% (fifty percent) margin (credit spread) the beginning (at the time of issuance of the instrument) and floating interest rates that were used after the 10th year compared to interest rates at the time of issuance of the instrument.

For example, change from fixed rate into a floating rate (LIBOR + Spread) * interest rate before (year 1 to 10) = 7% fixed rate, LIBOR 5.5%, the assumption at the time of issuance of the instrument. Thus, at interest rates of 7% then spread over LIBOR is 1.5%.

For example, with the interest rate of the instrument not at risk (risk free) = 6%, then 50% (fifty per cent) of margin (credit spread) was 50% x 7% (-6%) = 0.5% * interest rate recently (since the year 11) = LIBOR + 2% spread (spread early 1.5% + 0.5%). The letter g., quite obviously, subsection (3).,, letter a.,, is quite clear. The letter b, Letter c, is quite clear., 1., the figure, which is the same or better quality is the least capital instruments eligible as an innovative component. Figure 2.,, core capital is core capital at the time of replacement.

A limit of 10% (ten percent) of the core capital accounted for by observing the whole instrument of innovative capital available.

An example of "a different amount" is as follows: for example innovative executed capital is Rp 100,000,000 (one hundred million rupiah), but at the time of replacement, core capital of banks experiencing capital limitations so that innovative changes such as becoming the highest rated Rp 150.000.000,-(one hundred and fifty-five million rupiah).

With this condition, then the Bank can replace the innovative capital amounting to Rp 150.000.000,-(one hundred and fifty million rupiah).

Article 12, paragraph (1), component Requirements, core capital refers to the requirements regarding additional paid-in capital and reserve capital (profit was detained and profit year running). Subsection (2), Article 13 clearly, simply,, letter a., of financial accounting standards, subject to any applicable, goodwill is the difference between the acquisition cost and the greater part of the reasonable value of the top acquirer of the company assets and liabilities that can be identified on the date of transaction.
Goodwill is accounted for only in the calculation of a deduction factor KPMM Bank consolidation. The letter b.,, including other intangible assets as, among others, copy right, patents, and intellectual property rights (intellectual property right). The letters c, a, clause 14 is clear enough, clear enough, Article 15, paragraph (1), letter a, letter b, quite clearly, is quite clear. The letters c, a, is quite clear. D.,, is quite clear. The letter e.,, included in the category of protected or guaranteed by the Bank or the company of Children, namely protection or assurances received from the other party but is done through a Bank or a company of children, such as premium/fee in order to guarantee paid by banks or companies. The letter f.,, 1.,, is quite clear. Figure 2.,, is quite clear. Figure 3.,, is the step-up feature is a feature that promises a rise in interest rates when the option to buy is not executed on a predetermined period of time.
.,, The letter a),, is quite clear. The letter b), quite clearly, the letter c),, is a "margin (credit spread)" is the difference between the rate of yield/interest rate instruments is the interest rate of the instrument not at risk (risk free).

Big step-up assignment refers to illustration expressed on the explanation of article 11 paragraph (2) letter f Figure 3 letter c). The letter g.,, is quite clear. Paragraph (2) letter a,,.,, is quite clear. The letter b.,, is quite clear. The letters c, a, 1.,, is the same or better quality is the least capital instruments eligible as supplementary capital components of the top level (upper tier 2). Figure 2., supplementary capital Constraints are taken into account, having regard to the whole capital instruments complement the available capital to complement both the top level (upper tier 2) as well as supplementary capital in the lower level (lower tier 2).

An example of "a different amount" is as follows: for example supplementary capital is Rp 500.000.000,-executed (five hundred million rupiah), but at the time of replacement, the core capital of the Bank experienced a change so that complementary capital restrictions such as being the highest at Rp 400.000.000, – (four hundred million rupiah).

With this condition, then the Bank can replace supplementary capital of Rp 400.000.000, – (four hundred million rupiah).

Article 16, paragraph (1), letter a, the, example "capital instruments in the form of stock or other capital instruments which meet the requirements referred to in Article 15" are:.,, 1. Preferred stock (which entitles the holder to receive a dividend the shareholder ahead of other classifications) cumulatively (Perpetual cummulative preference share);
., ,2. Debt instruments which have characteristics of capital, is subordinated, not having a period, are cumulative and filled all the requirements to be taken into account as supplementary capital components of the top level (Perpetual subordinated debt cummulative);
., ,3. Debt instruments which have characteristics such as capital requirements without automatically can be converted into shares and after Bank Indonesia approval (Mandatory convertible bond).

The condition and value of a conversion should be set at the time of the issuance of that magnitude in line with market conditions. The letter b.,, is a "part of innovative capital that cannot be accounted for in the core capital" is the difference more eligible capital instruments as a component of innovative capital limitation of 10% (ten percent) of the core capital. The letters c, a, 1.,, the difference value of fixed assets revaluation on this figure had previously been excluded from the calculation of profit/loss last year which is a component of the core capital.

This treatment is reserved for banks that do fixed assets Revaluation before PSAK NO. 16 (revised) about fixed assets effective and cost using the method in the measurement of fixed assets.

The difference in the value of fixed assets Revaluation are after tax. Figure 2.,, an increase in the value of the fixed assets on reasonable figures had previously been excluded from the calculation of profit/loss last year and/or profit after tax which is a component of the core capital.

This treatment is reserved for Banks that use fixed assets Revaluation model as set forth in PSAK NO. 16 on fixed assets. The letter d

.,, The establishment of a general allowance reserve assets over the productive assets of the mandatory provisions of the Bank is formed refers to Indonesia regarding the quality of the assets.

Example: General allowance Reserve assets over the productive assets of IDR 15,000,000 established mandatory,-(fifteen million rupiah) and RWA credit risk to the Bank amounting to Rp 1,000,000,000 (one billion dollars).

General reserves can be counted as supplementary capital components of most top level high 1.25% x Rp 1,000,000,000,-= Rp 12.500.000,-(twelve million five hundred thousand dollars).

In this case there are advantages of general reserve amounting to Rp 2,500,000,-(two million five hundred thousand dollars) that could not be accounted for as a capital component of the complement of the upper level (upper tier 2). The letter e.,, is classified in group equity available for sale is the inclusion of stocks that meet the criteria of a method of cost and fair value. Subsection (2), a public reserve, excess allowance of productive assets assets according the example on an explanation of paragraph (1) letter d i.e. Rp 2,500,000,-(two million five hundred thousand rupiah) become a factor in the calculation of the deduction on RWA for credit risk.

Article 17, paragraph (1), which includes a component to complement the lower level (lower tier 2) inter alia:.,, a. preferred stock that can be pulled back after a certain period (Redeemable Preference Shares); b. subordinated loans or subordinated bonds. Paragraph (2) letter a,,.,, is quite clear. The letter b.,, is quite clear. The letters c, a, is quite clear. D.,, is quite clear. The letter e.,, included in the category of protected or guaranteed by the Bank or the company of Children, namely protection or assurances received from the other party but is done through a Bank or a company of children, such as premium/fee in order to guarantee paid by banks or companies. The letter f.,, 1.,, is quite clear. Figure 2.,, is quite clear. Figure 3.,, is a "feature step-up" is a feature that promises a rise in interest rates when the option to buy is not executed on a predetermined period of time.
.,, The letter a),, is quite clear. The letter b),, is quite clear. The letter c),, is a "margin (credit spread)" is the difference between the rate of yield/interest rate instruments is the interest rate of the instrument not at risk (risk free).

Calculation of the limit of determination of the step-up refer to the illustrations in section 11 paragraph (2) letter f Figure 3 letter c). The letter g., quite obviously, subsection (3).,, letter a.,, is quite clear. The letter b.,, is quite clear. The letters c, a, 1.,, is the same or better quality is the least capital instruments eligible as supplementary capital components of the lower level (lower tier 2). Figure 2., supplementary capital Constraints, lower level (lower tier 2) calculated by observing the whole capital instruments complement the lower level (lower tier 2) are available.

An example of "a different amount" is as follows: for example supplementary capital is USD 200 million were executed,-(two hundred million rupiah), but at the time of replacement, core capital of banks experiencing capital limitations so that changes to complement the lower level (lower tier 2) for example being the highest at Rp 100,000,000 (one hundred million rupiah).

With this condition, then the Bank can replace capital complement level down (lower tier 2) only Rp 100,000,000 (one hundred million rupiah). Subsection (4), the definition of amortization using the straight line method is amortization are prorated. Subsection (5), Amortization is calculated based on the value of capital instruments that have been take into account the reduction of the reserve payment (sinking fund). Subsection (6), the implementation of the amortization, illustration: example 1: the Bank issuing the bond of subordination which has a period of 10 (ten) years and have the option to buy at the end of the year to 5.

In these conditions, the Bank is obligated to start calculating amortization since first year.

If at the end of year 5, the Bank does not execute the buy option then began earlier in the year to the subordinated bonds 6 can be taken into account in the calculation of return KPMM having regard to the restrictions required including the obligation to take into account the amortization.

Example 2: banks issuing bonds of subordination which has a period of 10 (ten) years and have the option to buy after the end of the year to 5.

In this condition, then the remainder of the period of the instrument at the beginning of the publication is 5 (five) years. Mandatory amortization start taken into account by the Bank since the first year.

After the end of the year to 5 up to maturity, the Bank can not take into account the subordinated bonds back as capital complement level down (lower tier 2) even though the Bank has yet to execute the buy option.

Article 18., subordinated loans, the value of subordinated bonds of Bank or issuer that is reduced after taking into account the reserve payment (sinking fund).

Example: A Bank issuing instruments as supplementary capital components to bottom level (lower tier 2) in the form of subordinated bonds amounting to $ billion.

The Bank also bought A complementary capital instruments in the form of subordinated bonds (both of which include top level complement capital or capital complement level below) published the Bank B amounting to Rp20 billion.

In this condition, then subordinated bonds which can be taken into account as a supplementary capital components of the lower level (lower tier 2) by A Bank only amounting to Rp20 billion – $ billion = Rp80 billion, which was tailored to complement capital restriction level down (lower tier 2) are allowed.

Article 19, article 20 is quite clear., paragraph (1), letter a, the inclusion of imputed Values, is the book value recorded in the balance sheet. The letter b.,, lack of capital (shortfall) are taken into account as a factor in the calculation of a deduction only KPMM are consolidated.

Lack of capital (shortfall) companies that perform business activities of RBC Insurance minimum taken into account if the company does not meet the minimum until the RBC with a time period set by the supervisory authority are authorized.

Insurance companies that controlled the Bank refers to the definition of the Control referred to in this provision. The letters c, a, treatment of securitization exposure as a deduction of capital refers to the provisions of Bank Indonesia concerning the securitization assets.

The definition of "securitization exposure" is supporting credit (credit enhancement), liquidity (liquidity support), and asset-backed securities (asset-backed securities). Subsection (2), quite obviously, subsection (3), clear Enough, chapter 21, paragraph (1), letter a,.,, is quite clear. The letter b., with these settings, then the core capital that must be allocated to the risk the market least of 28.5% (twenty eight comma five percent) of the burden of capital for market risk. The letters c, a, is quite clear. Paragraph (2) letter a,,.,, is quite clear. The letter b.,, is quite clear. The letters c, a, is quite clear. D.,, is quite clear. The letter e.,, included in the category of protected or guaranteed by the Bank or the company of Children, namely protection or assurances received from the other party but is done through a Bank or a company of children, such as premium/fee in order to guarantee paid by banks or companies. The letter f.,, 1.,, is quite clear. Figure 2.,, is quite clear. Figure 3.,, is the step-up feature is a feature that promises a rise in interest rates when the option to buy is not executed on a predetermined period of time.
.,, The letter a),, is quite clear. The letter b),, is quite clear. The letter c),, is a "margin (credit spread)" is the difference between the rate of yield/interest rate instruments is the interest rate of the instrument not at risk (risk free).

Calculation of the limit of determination of the step-up refer to the illustrations in section 11 paragraph (2) letter f Figure 3 letter c). The letter g., quite obviously, subsection (3).,, is quite clear. Subsection (4),, letter a.,, is quite clear. The letter b., capital Utilization, complementary (tier 2) as a component of additional supplementary capital (tier 3) remain mindful of the limitations of the number of supplementary capital (tier 2) and additional supplementary capital (tier 3). The letters c, a, is a "part of the supplementary capital level down (lower tier 2) that exceed the limits on capital complementary level down (lower tier 2)" was the difference more eligible capital instruments as supplementary capital components of the lower level (lower tier 2) from the constraints of 50% (fifty percent) of the core capital.

Section 22, it is the completeness of supporting documents, to show that the requirements stipulated in these conditions have been met.

Article 23, section 24, is clear enough, clear enough, Article 25, Article 26, is quite clear., Treatment, recognition and measurement refers to Statements of financial accounting standards (PSAK) No. 55 (Revision 2006) on financial instruments: recognition and measurement.

Article 27, Article 28 is quite clear,.,, example 1: prior to the merger or consolidation, the Bank A and Bank B does not meet the criteria to take into account market risk.

For 6 (six) months after the merger or consolidation is declared effective, on month to 1 (one), 3 (three), and 4 (four), merger or consolidation of Banks that meet the criteria to take into account market risk.

Thus, the Bank merger or consolidation of the mandatory Market risk since the 7th month (seven).

Example 2: A Bank does not meet the criteria to take into account market risk.

Furthermore, a Bank with acquisition of financial companies so that A Bank X consolidated against the company X.

For 6 (six) months after acquisition company X was declared effective, in the month to 2 (two), 4 (four), and 6 (six), the Bank consolidated with company X that meets the criteria for Market risk.


Thus, the Bank consolidated with company "X" the Child is obligated to take into account market risk since the 7th month (seven).

29. Article, pretty clear, article 30, article 31 clearly, enough, clear enough, Article 32, paragraph (1), letter a, the definition of "risk of interest rate" is the risk of loss due to changes in the price of a financial instrument from Trading Book positions that are caused by changes in interest rates. The letter b.,, is a "risk of exchange rates" is the risk of loss due to changes in the value of the position of the Trading Book and Banking Book caused by changes in foreign currency exchange rates including a change in the price of gold. Subsection (2), the definition of "equity risk" means the risk of loss due to changes in the price of a financial instrument from Trading Book positions that are caused by changes in the stock price.

The definition of "risk commodities" is the risk of loss due to changes in the price of a financial instrument from Trading Book position and Banking Book caused by changes in commodity prices.

Article 33, paragraph (1), quite obviously, subsection (2), the new Bank, meets the criteria to take into account market risks, then the calculation of the market risk mandatory starting with using the standard method. Paragraph (3).,, is quite clear. Subsection (4), Article is quite clear, 34, paragraph (1), Reports KPMM calculation, taking into account market risks, among others, include the position reports are taken into account in market risk, report KPMM ratio calculation, calculation of value at risk reports and the burden of capital, reports back testing, as well as a report on stress testing. Paragraph (2).,, is quite clear. Paragraph (3), for example: When A Bank has obtained approval to use an Internal Model to account for the risk of the market in February 2009, then the report related to the compulsory Internal Model drawn up for the first time at the end of March 2009.

Article 35, Article 36, clear enough, clear enough, Article 37, Article 38, clear enough, clear enough, Article 39.,, is a "significant amount" is significant to the total financial assets available for sale within the group.

Article 40, Article 41, it is clear enough, clear enough, Article 42, Article 43, clear enough, clear enough, Article 44, Article 45, is clear enough, clear enough,