SHEET COUNTRY
REPUBLIC OF INDONESIA
| No. 128, 2007 | (Explanation In Addition of the Republic of Indonesia State Number 4773) |
BANK INDONESIA RULES
NUMBER: 9/13/PBI/2007
ABOUT
THE GENERAL BANK MINIMUM CAPITAL PROVISION OBLIGATION
BY TAKING INTO ACCOUNT THE MARKET RISK
GOVERNOR OF THE BANK OF INDONESIA,
.,, weighed: a. that in the calculation of the adequate adequate, in addition to considering credit risk, the bank also needs to consider the market risks, nor any other risk;
., b. That with the more complex financial instruments exposed to market risk, it needs to be given an alternative method of market risk measurement that corresponds to the ability and needs of banks in order of calculation of the adequate of the application;
., c. that in taking into account the market risk may be performed by the standard method (standard method) and/or internal model (internal model) either for the bank individually and in consolidation with the child company;
., d. that based on consideration as intended on the letter a, b, and c are required to reset to the provisions of the General Bank's Minimum Capital Provision Of Provision By Taking Into Account The Market Risk (Market Risk) In The Bank Regulation. Indonesia;
.,, Given: 1. Law Number 7 of 1992 on Banking (Sheet State Republic Of Indonesia 1992 Number 31, Additional Gazette Republic Indonesia Number 3472) as amended by Law Number 10 Year 1998 (sheet of State of the Republic of Indonesia in 1998 Number 182 Supplement of the Republic of Indonesia Indonesia Number 3790);
., 2. Law No. 23 of 1999 on Bank Indonesia (State of the Republic of Indonesia Year 1999 No. 66, Additional Gazette of the Republic of Indonesia Number 3843) as amended by Act No. 3 of 2004 (State Sheet) Republic of Indonesia 2004 Number 7, Additional Gazette of the Republic of Indonesia Number 4357);
., 3. Indonesia Bank Regulation No. 3/21/PBI/2001 on Obligation Of Provision Of The Minimum Capital Bank (sheet Of State Of The Republic Of Indonesia In 2001 Number 149, Additional Sheet Of State Of Indonesia Republic Number 4158);
., 4. Indonesia Bank Regulation Number 8/6/PBI/2006 on Consolidation Of Risk Management For Banks That Do Control Over Child Companies (sheet Of State Of The Republic Of Indonesia In 2006 Number 8, Additional Gazette Of The Republic Of Indonesia) Indonesia Number 4602);
DECIDED:
.,, Setting: INDONESIA BANK REGULATIONS ON THE OBLIGATION OF PROVIDING MINIMUM CAPITAL BANKS BY TAKING INTO ACCOUNT THE MARKET RISKS.
BAB I
UMUM PROVISIONS
Section 1
In Regulation of the Bank of Indonesia this is referred to by:
., 1. The Bank is the General Bank as referred to in the Law Number 7 of 1992 on Banking as amended by Law No. 10 of 1998, including the office of a foreign bank branch, which carries out conventional business activities.
., 2. A Children's Enterprise is a legal entity or company owned and/or controlled by the Bank directly or indirectly, both inside and abroad that conduct business activities in the financial field, consisting of:
.,
., a., a. Subsidiary Company (Subsidiary Company) is a Child Company with a Bank entitlement of more than 50% (fifty-one hundred);
., b. Participation Company (Participation Company) is a Child Company with a Bank of 50% (fifty per100) or less, but the Bank has the control over the company;
., c. The company with Bank holdings is more than 20% (twenty-perhundred) up to 50% (fifty-perhundred) that meets the requirement:
.,
.,, 1) the ownership of the Bank and the other parties on the Children ' s Enterprise are each equally great; and
.,, 2) each owner performs the Controlling together against the Children ' s Company;
., d. Other entities based on the applicable financial accounting standards are to be consolidated, but do not include insurance companies and companies owned in the framework of a credit rescue.
., 3. Market Risk is the risk of loss on the balance sheet position and administrative accounts including derivative transactions due to the overall change of market conditions, including the risk of a option price change.
., 4. The Flower Tribe risk is a risk of loss due to changes in the price of financial instruments from the Trading Book " position caused by a change in interest rates.
. .5. The risk of exchange rates is the risk of loss resulting from changes in the Trading Book and Banking Book results caused by changes in the exchange rate of foreign exchange including changes in the price of gold.
., 6. Equity Risk is a risk of loss as a result of the financial instrument price change from the Trading Book position " caused by a change in stock price.
., 7. Commodity risk is a risk of loss as a result of the financial instrument price change from the Trading Book and Banking Book position caused by the change in commodity prices.
., 8. Specific Risk is the risk of changing the price of financial instruments as a result of factors related to the issuer of financial instruments.
., 9. The General Risk is the risk of changing the price of financial instruments due to changing market factors.
., 10. Trading Book is the entire position of financial instruments in its balance sheet and administrative accounts including derivative transactions that are owned for:
.,
., a., a. destination is traded and can be transferable freely or can be protected in its entirety, either from the transaction for its own sake (proprietary positions), at the request of the nasabah and the intercession activities (brokering), and in the wake of the market making, which includes:
.,, 1) a position that is owned for resale in the short term;
.,, 2) a position that is owned for the purpose of actual and/or potential short-term profit of the price movement (price movement); or
.,, 3) a position that is owned for the purpose of maintaining an arbitration advantage (locking in arbitrage profits);
B. the purpose of hedge-value for other positions in the Trading Book.
., 11. Banking Book is all the other positions that are not included in Trading Book.
Section 2
.,, (1) the Bank that meets certain criteria is required to meet the minimum capital provision obligations (KPMM) by taking into account the Market Risk of 8% (eight perhundred) both individually and/or consolidated with the Child Company.
.,, (2) The fulfillment of the obligation as referred to in paragraph (1) does not eliminate the Bank ' s obligations meeting KPMM by taking into account the credit risk as per the provisions of the Bank of Indonesia applicable.
.,, (3) Market risk required to be counted by the Bank individually and/or consolidated with the Children ' s Company is:
., a., a. Interest Rates risk; dan/or
B. The Risk Of Exchange Rate.
(4) In terms of the Bank:
.,
., a., a. has Children ' s Enterprise exposed to the Risk of Equities and/or Commodities Risk; and
., b. Consolidated with Child Companies to meet the criteria referred to in Section 3 paragraph (1) letter b, then the Bank is consolidated with the Child Company to account for the Risk of Equities and/or Commodity Risk in addition to Market Risk as it is referred to in verse (3).
Section 3
.,, (1) Certain Criteria for the Bank that are required to meet KPMM by taking into account the Market Risk as referred to in Article 2 of paragraph (1) is:
., a., a. Banks that individually meet one of the criteria as follows:
.,
., 1. Banks with total assets of Rp10,000.000.000.00 (ten trillion rupiah) or more;
., 2. Bank devisa with a position of financial instrument of a valuable letter and/or derivative transaction in the Trading Book of Rp20,000.000.00 (twenty billion rupiah) or more;
., 3. Banks are not a bank of a visa with a position of financial instruments of valuable mail and/or interest transactions in a Trading Book of Rp25,000.000.00 (twenty-five billion rupiah) or more;
and/or;
., b. A bank that is consolidated with Child Enterprise meets one of the criteria as follows:
.,
., 1. The bank of the devisa which is consolidated with the Child Company has a financial instrument position of a valuable letter including financial instruments exposed to the risk of Equities and/or derivative transactions in the Trading Book and/or financial instruments. Commodity Risk Exposes in Trading Book and Banking Book of Rp20,000.000.00 (twenty billion rupiah) or more;
., 2. Banks are not a Bank of a visa which is consolidated with Child Companies to have a financial instrument position of a valuable letter including financial instruments exposed to the risk of Equities and/or derivative transactions in the Trading Book and/or Financial instruments exposed to the Commodity risk in Trading Book and Banking Book of Rp25.000.000.00 (twenty-five billion rupiah) or more.
., (2) The obligation to take into account the Market Risk as referred to in Section 2 of the paragraph (1) applies also to the Bank which has an office network and/or Children ' s Enterprise in other countries and the branch office of the Bank whose head office Out of the country.
Section 4
The valuable letter in
Trading Book as referred to in Article 3 of the letter a digit 2 and number 3, the letter b number 1 and number 2 only includes a valuable letter classified in the trafficked group.
Section 5
Bank which after the merger or consolidation meets the criteria as referred to in Section 3 at least 3 monthly reporting periods in the first 6 months after the merger or consolidation is declared effective, must account for Market Risk in KPMM calculations since the month to 7 (seven) after the merger or consolidation is declared effective.
Section 6
For the Bank that has been required to account for Market Risk in KPMM calculations, if on January 1, 2009 does not meet the criteria referred to in Article 3 due to the change in the scope of valuable mail coverage in
Trading Book, then Banks are not obliged to account for Market Risk in KPMM calculations.
Section 7
Banks that have met the criteria as referred to in Section 3 and the Bank as referred to in Article 5 remain mandatory forever taking into account the Market Risk in KPMM.
BAB II
THE APPLICATION ASPECT
Section 8
.,, (1) the Bank may account for additional Complementary Capital (tier 3) for individual KPMM calculation purposes and/or consolidated with Child Enterprise.
., (2) Additional Complementary Capital (tier 3) in KPMM calculations as referred to in paragraph (1) may only be used to account for Market Risk.
., (3) The Post that may be counted as Additional Complementary Capital (tier 3) as referred to in paragraph (1) is the Short-Term Subordination Loan that meets the criteria as follows:
.,
., a., a. is not guaranteed by the Bank or the Children ' s Company concerned and has been fully deployed;
B. have an agreement term of at least 2 (two) years;
.,, c. cannot be paid prior to the scheduled time schedule in the loan agreement except with the Bank of Indonesia ' s approval;
., d. there is a (lock-in clause) clause which states that it cannot be made principal or interest payments, including payment at the time of due, if the payment is intended to cause the KPMM individually or in a given way. The consolidation with the Children's Enterprise does not meet the applicable provisions;
e. there is a clear loan agreement including its launch schedule; and
f. received approval first from Bank Indonesia.
., (4) Additional Complementary Capital (tier 3) as referred to in paragraph (1) to account for Market Risk may only be used by meeting the criteria:
.,
., a., a. does not exceed 250% (two hundred and fifty-fifths) of the allocated Core Modal section to account for Market Risk;
., b. (tier 2) and additional Complementary Capital (tier 3) the highest of 100% (one hundred perhundred) of the Core Modal.
., (5) Complementary Capital (tier 2) may not be added to additional complementary capital (tier 3) by meeting the requirements as referred to in paragraph (4).
.,, (6) Subordination loans as set forth in the applicable terms and exceed 50% (fifty-perhundred) of the Core Modal, may be used as additional Complementary Capital components (tier 3) by staying up to the requirements as It is in verse (4).
BAB III
THE MARKET RISK ASPECT
Section 9
Market Risk reckoned over:
., a., a. the position of the financial instruments in Trading Book exposed the Risk of the Flower Tribe;
., b. foreign exchange positions in Trading Book and Banking Book exposed the Risk of Tukar Value;
c. position of the financial instruments in
Trading Book of the Risk of Equities;
., d. the position of the financial instruments in Trading Book and Banking Book exposed to the Risk Commodity.
Section 10
The financial assets that at the time of initial recognition are set to be a financial asset measured at a reasonable value through the profit report are excluded from the
Trading Bookcoverage.
Trading Book policy and Guidelines
Section 11
.,, (1) The Bank is obliged to compose and implement Trading Book policies and guidelines as part of the Bank ' s policy and risk management guidelines.
.,, (2) The bank is required to periodically revisit the Trading Book guidelines and guidelines as referred to in paragraph (1).
Section 12
Trading Book policies and guidelines as referred to in Article 11 most less include:
a. goal has a position in
Trading Book;
B. financial instrument criteria that can be established as
Trading Book;
c. portfolio management policy
Trading Book;
., d. parties that are authorized to approve or change Trading Book policies and guidelines;
., e. mechanism to ensure that the financial instrument criteria designated as Trading Book are applied consistently;
., f. the designation of a financial instrument valuation in Trading Book by using a daily reasonable value based on market price or scoring model/engineering;
., g. document any trading strategy (trading strategy) of the position or portfolio of Trading Book that gets the consent of the authorized party.
Valuations Trading Book
Section 13
.,, (1) The bank is required to perform a daily valuation of the Trading Book position in an accurate way.
.,, (2) In conducting of valuations as referred to in paragraph (1), the Bank is required to have a policy and valuation procedure, including having an adequate management information and process control system integrated with the management system. Risk.
.,, (3) the policy and procedure of valuation as referred to in paragraph (2) is mandatory on the principle of prudness.
Section 14
(1) The mandatory valuation process is carried out based on reasonable value.
., (2) Towards an actively traded financial instrument, the valuation process as referred to in paragraph (1) is carried out using the transaction price that occurs (close out prices) or the market price annotation of the source Independent.
.,, (3) Valuation of financial instruments as referred to in paragraph (2) using:
.,
., a., a. bid price for the assets owned or liabilities to be published; and/or
B.
ask price for the assets to be acquired or the obligations it has.
.,, (4) In terms of market pricing as referred to in paragraph (2) is not available, the Bank may set a reasonable value by using a model-based assessment technique based on the principle of caution.
Section 15
(1) The bank is required to conduct verification of the process and the outcome of the valuation.
.,, (2) The verification process as referred to in paragraph (1) is mandatory at least 1 (one) times in 1 (one) month by the parties not participating in the performance of the valuation.
.,, (3) The bank is obliged to adjust the results of the valuation based on verification as referred to in paragraph (1).
Section 16
Banks are required to immediately make adjustments to the valuation results that do not yet reflect a reasonable value in terms of:
a. a significant change in economic conditions;
., b. the price of a financial instrument that is referenced in reference is the price of a forced transaction, forced liquidation, or sale due to financial difficulties;
c. Financial instruments are already approaching the due date; and/or
D. The price that is made reference is not reasonable because of the other conditions.
Section 17
.,, (1) In addition to the adjustments as referred to in Article 16, the Bank is obliged to make an adjustment to the valuations of the position of the less licuid by considering certain factors.
.,, (2) In terms of fitting adjustments as referred to in paragraph (1), the Bank is required to account for the impact of adjustment as the Core Modal containment factor in the KPMM calculations.
Market Risk Calculations
Section 18
.,, (1) Market Risk calculation in KPMM calculations is carried out by using:
., a., a. Standard Method (Standard Method); and/or
B. Internal Model (internal Model).
.,, (2) The Bank that meets the criteria as referred to in Article 3 is required to use the Standard Method in the Market Risk calculation.
Standard Method
Section 19
(1) The risk calculation of the Flower Tribe includes Specific Risk and General Risk.
(2) The General Risk calculation method is carried out using:
., a., a. The Maturing Method (Maturity Method); or
B. Time-term method (Duration Method).
.,, (3) Use of the method as referred to in paragraph (2) the letter b is required to meet certain requirements as set forth in the Indonesian Bank Circular Letter.
.,, (4) The burden of capital for the Risk of Interest Rates is calculated based on a particular percentage of the position of financial instruments exposed to the Risk of Interest Rates.
Section 20
.,, (1) In order of calculation of the Interest of the Flower Tribe, the Bank of Indonesia sets the rating agency (agency rating) and the ranking is recognized.
.,, (2) The recognition of the ranked institution and the recognized ranking as referred to in paragraph (1) is set in the Indonesian Bank Circular Letter.
Section 21
.,, (1) The Risk Rate calculation is based on the Position of Devisa Neto which is owned by the Bank.
.,, (2) The capital burden for the Risk of Tukar Value is calculated based on a particular percentage of the Position of Devisa Neto.
Section 22
.,, (1) The calculation of the Equivalence of Equities including Specific Risk and General Risk is based on the position of financial instruments exposed to the Risk of Equity owned by the Children ' s Company.
.,, (2) The burden of capital for the Risk of Equities amounting to the sum of the capital burden of the Risk of Equities on each financial market.
.,, (3) The capital burden for the Risk of Equities on each financial market is calculated based on a certain percentage of:
., a., a. The gross equity position
(gross equity position) for Specific Risk; and
., b. Neto equity position overall (overall net position) for General Risk;
Section 23
.,, (1) Commodity Risk Calculation arising from the position of financial instruments exposed to the Commodity Enterprises ' s Commodity Risk, done by using:
., a., a. Simple Method (Simplified Approach); or
B. The Falling Tempo Method (Maturity Ladder Approach).
.,, (2) The use of the method as referred to in paragraph (1) is mandatory in a consistent manner.
.,, (3) The capital burden for the Risk of Commodes is calculated based on a particular percentage of the position of financial instruments exposed to the Risk Commodity.
Section 24
A certain percentage as referred to in Article 19 of the paragraph (4), Article 21 of the paragraph (2), Article 22 of the paragraph (3), and Article 23 of the verse (3) is set in the Indonesian Bank Circular Letter.
Internal Model
Section 25
.,, (1) the Bank that uses the Standard Method as referred to in Article 18 paragraph (2) that meets certain requirements may use the Internal Model in Market Risk calculation after obtaining approval from the Bank of Indonesia.
.,, (2) Certain requirements as referred to in paragraph (1) are set in the Indonesian Bank Circular Letter.
.,, (3) The Bank that will use the Internal Model as referred to in paragraph (1) is required to apply to the Bank of Indonesia with certain information and documents set out in the Indonesian Bank Circular Letter.
.,, (4) In terms of the Bank will do a modification of the use of the Internal Model as referred to in paragraph (1), the Bank is required to obtain a return agreement from the Bank of Indonesia.
.,, (5) The Bank that will use the Internal Model after the end of December 2007 obliged to list the use of the Internal Model referred to in the Bank ' s business plan.
.,, (6) In order to provide approval, the Bank of Indonesia conducted a review of the Internal Model to be used.
Section 26
.,, (1) In terms of new products and activities performed by the Bank that have obtained consent to use the Internal Model, then the Market Risk measurement for these new products and activities uses the Standard Method.
.,, (2) the bank is required to submit an Internal Model usage plan for the measurement of the Market's risk of new products and activities as referred to in paragraph (1) to the Bank of Indonesia.
.,, (3) The action plan as referred to in paragraph (2) is delivered in conjunction with the delivery of new product reports and activities.
.,, (4) The Bank of Indonesia can request the Bank make changes to its plan of action based on the results of the study.
Section 27
.,, (1) The Bank of Indonesia will conduct monitoring and evaluation of the use of the Internal Models.
.,, (2) Based on the evaluation results as referred to in paragraph (1), the Bank of Indonesia can do among other things:
.,
., a., a. require the Bank to perform an adjustment of the use of the Internal Model within the term specified by the Bank of Indonesia;
B. set the scale factor adjustment; and/or
c. Abort Internal Model usage approval.
Section 28
.,, (1) The Bank that has obtained the Bank of Indonesia ' s approval to use the Internal Model is prohibited from using the Standard Method in the calculation of Market Risk.
.,, (2) The Reuse of Standard Methods can be done only if the Bank of Indonesia invalidate approval of the use of the Internal Model.
Section 29
Banks that have obtained the Bank Indonesia approval to use the Internal Model are required to use the Internal Model for the slowest KPMM calculations in the next month end reporting position.
BAB IV
CALCULATION OF THE MINIMUM CAPITAL PROVISION OBLIGATION
Section 30
KPMM calculations are individually and/or consolidated with the Children's Enterprise which meets the Bank that meets the criteria as referred to in Section 3 includes:
., a., a. KPMM for credit risk as referred to in the applicable Indonesian Bank provisions regarding the KPMM, but does not include a position on the Trading Book which has taken into account the Specific Risk for the Risk of Interest; and
., b. KPMM for Market Risk as set in this Bank of Indonesia Regulation.
BAB V
REPORTING
Section 31
.,, (1) the Bank that uses the Standard Method in KPMM calculations by taking into account the Risk of the Market is reporting the Market Risk calculation on a monthly manner in the format specified by the Bank of Indonesia by referring to the provisions of the IBM SaaS. General Bank Report.
.,, (2) In the event the Bank has obtained the Bank of Indonesia approval to use the Internal Model in KPMM calculations by taking into account the Market Risk, the Bank is required to deliver the report associated with the Internal Model on a monthly and quarterly in accordance with the format established by the Bank of Indonesia by referring to the provisions of the Public Bank ' s Berkala Report.
.,, (3) The reports associated with the Internal Model are quarterly for the first set up at the end of the quarterly after the Internal Model is used for KPMM calculations.
.,, (4) Reporting as referred to in paragraph (1), paragraph (2), and paragraph (3) is conducted in the delivery period III of the General Bank Terms of Service.
.,, (5) During the reporting as referred to in paragraph (2) it is not yet possible to be reported on-line, then the mandatory reporting is delivered off-line by the Bank to the Bank of Indonesia with the address:
.,
., a., a. Bank Oversight Directorate related, Jl. MH. Thamrin No. 2 Jakarta 10350, for the Bank headquartered in the work area of the Bank of Indonesia headquarters; or
., b. The Bank of Indonesia's local office, for the Bank headquartered outside the central office of Indonesia's central office,
with busan to the Perizinan Directorate and Banking Information, Jl. MH. Thamrin No. 2 Jakarta 10350.
BAB VI
THE TRANSITION PROVISION
Section 32
The provisions in the Bank Indonesia Regulation No. 5/12/PBI/2003 dated July 17, 2003 on the Liability of the Federal Bank's minimum capital provision by taking into account the market risk
(Market Risk) which set about:
., a., a. valuable mail position in Trading Book as referred to in the Description of Section 3 of the paragraph (1) letter b and c;
B. Indonesian Bank certificate as referred to in Article 7;
c. The valuable letter as referred to in Article 8 of the paragraph (1); and
., d. the mark to market process as referred to in Article 9 of the paragraph (1) and verse (2), still remains in effect until 31 December 2008.
BAB VII
THE SANCTION
Section 33
A bank that commits a breach of the provisions as set out in Section 2, Section 5, Section 7, Section 8 of the paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (5) and paragraph (6), Section 9, Section 11, Section 12, Article 13, Section 14, Article 15, Section 16, Article 17, Section 18, Section 18, Section 18, Section 18, Section 18, Section 18, Section 18, Section 18, Section 18, Section Article 19, Section 21, Section 22, Section 23, Section 25 of the paragraph (1), paragraph (3), paragraph (4), and paragraph (5), Section 26 of the paragraph (1), paragraph (2), paragraph (2), and paragraph (3), Section 28, Section 29, and Section 30 may be subject to administrative sanction of the other:
a. written reprimand;
B. freezing of certain business activities;
., c. pencantuman the administrator and or holder of the Bank in the list of persons who are prohibited to be a shareholder and the administrator of the Bank, as referred to in Article 52 of the Law Number 7 of 1992 on Banking as amended by Act Number 10 Year 1998.
Section 34
Banks that violate the reporting provisions as referred to in Section 31 are subject to sanctions as set forth in the applicable provisions of the General Bank Kala Report.
Section 35
Banks that do trade over financial assets in the group are available for sale, which is done with a trade-like pattern of financial assets in the traded group:
a. in significant amounts; and/or
B. in high frequency,
is not allowed to group the next purchase of financial assets in the group available for sale, for 6 (six) months counts since the date of the release of the coaching letter by Bank Indonesia.
Section 36
In the event the Bank performs an action as referred to in Article 35 for the second time, then the Bank is not allowed to group the next purchase of financial assets in the group available for sale for 1 (one) year count since date of release of the coaching letter by the Bank of Indonesia.
Section 37
In the event the Bank performs the action as referred to in Article 35 more than twice, then the Bank is not allowed to group the next purchase of financial assets in the group available for sale during the 2 (two) year count since date of release of the coaching letter by the Bank of Indonesia.
BAB VIII
CLOSING PROVISIONS
Section 38
Provisions regarding:
a. valuable mail in
Trading Book as referred to in Article 4;
., b. Indonesian Bank Certificate of the Bank of Indonesia as referred to in Article 9 of the letter;
.,, c. the valuation process as referred to in Section 14 of the paragraph (2), paragraph (3), and paragraph (4);
., d. the verification process as referred to in Section 15, the adjustment to the value of the valuation which does not reflect the reasonable value as referred to in Section 16, and the adjustment to the value of the value of the less licuid position in question Article 17, specifically for the Bank that uses the Standard Method in Market Risk calculation; and
., e. The sanctions as referred to in Article 35, Section 36, and Section 37,
entered into force from 1 January 2009.
Section 39
By the enactment of the Regulation of the Bank of Indonesia, then the Bank Indonesia Regulation Number 5/12/PBI/2003 dated 17 July 2003 on the Liability of the Federal Bank's minimum capital provision by taking into account the market risk
(Market Risk) revoked and declared does not apply.
Section 40
The further provisions of this Indonesia Bank Regulation will be set up in the Indonesian Bank Circular Letter.
Section 41
This Bank of Indonesia Regulation is beginning to apply at the designated date.
In order for everyone to know, order the invitational of the Bank of Indonesia Regulation with its placement in the Republic of Indonesia State Sheet.
.,, Set in Jakarta
On November 1, 2007
INDONESIAN BANK GOVERNOR,
BURHANUDDIN ABDULLAH
ADDITIONAL
STATE SHEET RI
| No. 4773 | (Explanation Of 2007 State Sheet Number 128) |
EXPLANATION
Above
BANK INDONESIA RULES
NUMBER: 9/13/PBI/2007
ABOUT
THE GENERAL BANK MINIMUM CAPITAL PROVISION OBLIGATION
BY TAKING INTO ACCOUNT THE MARKET RISK
UMUM
.,, in the calculation of the adequition of the application, the bank needs to consider the risks that may arise in the activities of the bank's efforts. Those risks include credit risk, market risk, and other risks.
.,, In the Capital Accord 1988, the Basel Committee on Banking Supervision of the Bank for International Settlements set out a method of calculation of adequentiation of the application that takes into account the credit risk. In 1996, the Basel Committee on Banking Supervision, in 1996, had amended the Capital Accord to include the next enhanced risk of market risk again in 2005. Capital Accord 1988 and 1996 adjusted for International Convergence of Capital Measurement and Capital Standards: A Revised Framework or better known Basel II.
.,, the application of calculation adequates in Indonesia at this time has been accommodating Capital Accord 1988 and 1996 which takes into account the risk of credit and market risk in calculation of the bank ' s well-being-a-bank application. individual and consolidation with a child company.
.,, however, the calculation of the market ' s risk for now still uses standard methods. In the 1996 Capital Accord, which had been readjusted in 2005 as well as in Basel II, market risk calculations could be conducted using standard methods and/or internal models.
., therefore, given in Capital Accord 1996, 2005, and Basel II there are alternative methods in the application of market risk calculations, then based on this Bank Indonesia Regulation, calculation of the bank ' s application adequates for Market risk may also use an internal model (internal model) throughout obtaining approval from the Bank of Indonesia.
SECTION BY SECTION
Section 1
.,, pretty clear.
Section 2
.,, Verse (1)
., provided that the calculation of the KPMM ratio is individually performed by comparing capital to weighted activates according to the risk of both the credit or risk of the Market.
Whereas for a consolidated calculation of the KPMM ratio with the Child Company, it is done by comparing capital consolidation with a weighted activation according to the consolidation risk of both the credit or risk of the market.
Verse (2)
.,, Alocation of capital for calculation KPMM is prioritised to meet KPMM by taking into account credit risk.
In question, "the provisions of the Bank of Indonesia in effect" are the Regulation of the Bank of Indonesia regarding the KPMM.
Verse (3)
., clear enough.
Verse (4)
.,, pretty clear
Section 3
.,, pretty clear.
Section 4
.,, pretty clear.
Section 5
.,, pretty clear.
Section 6
.,, Changes to valuable mail coverage in Trading Book i.e. that does not take into account the group available for sale, came into effect from January 1, 2009.
Article 7
.,, referred to as "forever" is in terms of the Bank that has met the criteria but then becomes unqualified, the Bank remains mandatory to account for Market Risk in KPMM.
Article 8
.,, Verse (1)
., clear enough.
Verse (2)
., clear enough.
Verse (3)
., clear enough.
Verse (4)
.,, the letter a
., with this setting then at least 28.5% (twenty-eight and a half a hundred) of the Risk Market is calculated from the Core Modal that is not used to close credit risk as to the terms of the Bank of Indonesia that applies regarding the KPMM.
Letter b
.,, Modal Core and Complementary Capital is capital that meets the requirements as set out in the provisions of the Bank Indonesia applicable regarding KPMM.
Verse (5)
.,, Supplementary Capital that can be added is Complementary Capital that meets the requirements as set out in the provisions of the Bank Indonesia applicable regarding KPMM.
Verse (6)
.,, pretty clear
Article 9
.,, the letter a
.,, financial instruments exposed to the Risk of Interest Rates including the Bank of Indonesia ' s Certificate in Trading Book.
Letter b
., clear enough.
Letter c
., clear enough.
Letter d
.,, pretty clear
Article 10
.,, the enforcement of the recognition and measurement of the financial assets measured at a reasonable value through the profit report refers to the Financial Accounting Standards Statement (PSAK) No. 55 (Revision 2006) regarding the Financial Instruments: Recognition and Measures.
Article 11
.,, pretty clear.
Article 12
.,, the letter a
., clear enough.
Letter b
.,, the Criteria is set to pay attention among other things:
.,, 1. the requirements and conditions that must be met include the term of entitlement/holding period which refers to the general applicable practice (maximum 90 days);
.,, 2. Possible legal restrictions that could hamper trade; and
3. Financial accounting standards applicable.
Letter c
.,, portfolio management policies include the designation and monitoring of limits, the authority of the parties associated with portfolio management, as well as the monitoring and reporting of portfolio management.
Letter d
., clear enough.
Letter e
.,, the Mechanism includes among others:
1. The officer responsible for checking;
2. The frequency of checking;
3. Verify the fulfilment of Trading Book criteria.
Letter f
., clear enough.
The letter g
.,, pretty clear
Article 13
.,, Verse (1)
., clear enough.
Verse (2)
., the policies and procedures include the clear responsibilities of the various parties involved in the establishment of valuations, market information sources, and rework processes against the viability of valuations, the frequency of valuation () daily), the assignment of time for the final valuation of the day (closing price), the procedure of execution and the delivery of verification results both periodically and incidental, as well as valuation adjustment procedures.
The management information system and the control of the valuation process at least include the defined policy documentation and the reporting procedures and the reporting lines that are clear to the responsible working unit. against the process of valuations and verification.
Verse (3)
.,, the policy and procedure of valuation based on the principle of prudness among others does the valuation with regard to the application of risk management aspects and reasonable valuation procedures.
Section 14
.,, Verse (1)
., in accordance with applicable financial accounting standards, the "reasonable value" is the value in which an asset may be exchanged or an obligation is resolved between the understanding and the desire to perform the transaction. (arms's length transaction).
Verse (2)
., referred to as "actively traded financial instruments" is if the price of a financial instrument is available at any time and can be obtained routinely on the exchange, the vendor effect (dealer), the intermediary of the effect (broker), or other agents, as well as those prices are the prices that occur from actual transactions performed reasonably (arm's length base).
Transaction prices that occur or annotate market prices from independent sources include prices on exchange prices (exchange prices), the price on the dealer screen (screen prices), or the most conservative annotations given by the At least 2 (two) the broker and/or market maker has a good reputation, which is at least one of which is an independent party.
The use of independent sources is done consistently unless the obtained price does not reflect a reasonable value.
Verse (3)
.,, the letter a
., referred to as "bid price" is the purchase price that is being quantized by an independent source.
Letter b
.,, referred to "ask price (offer price)" is the sale price that is indicated by an independent source.
Verse (4)
.,, including the model/scoring techniques among others:
., a., a. the use of the prices arising from transactions that occur within 10 (ten) of the last working day;
., b. the use of market prices of other instruments that have the characteristics (at least a period of time, the similar rate of coupons, rank, and the issuer group);
c. Disconto flow analysis
(output cash flow);
D. the option pricing model
(option pricing models); or
., e. Assessment techniques generally have been used by the market's perpetrator in setting the price of the instrument.
The application of the principles of caution in the use of model/assessment techniques among others is concerned with the separation of the duties and the competencies of the parties involved in the development and use of the model, and ensure a rework of the accuracy Model/Assessment techniques by independent functions, as well as procedures and documentation of development and change of model/assessment techniques.
Article 15
.,, Verse (1)
.,, Verification is made to ensure the accuracy of the recomposition of the profit report.
Verification of the process and results of the most undervalued value of the market price and information is used as an input in the scoring model/technique.
Verse (2)
., clear enough.
Verse (3)
.,, the Adjustment is implemented against the value of the financial instruments in the balance sheet directly that will further affect the earnings report.
Section 16
.,, Adjustment of valuation results is conducted based on daily monitoring and verification results by the parties not participating in the performance of the valuation.
For example, the valuations that do not yet reflect a reasonable value can occur at valuation using the scoring model/technique.
Letter a
., referred to as "significant changes in economic conditions" among other changes of the imbal curve result (yield curve) significantly beyond the market expectations.
Letter b
., clear enough.
Letter c
.,, the factors of the remainder of the term up to the due date are taken into account given the closer the maturation, the value of the financial instruments is increasingly approaching the nominal value.
Letter d
., including any other conditions among others:
., a., a. the possibility of potential losses arising as the opposing party may not fulfill its obligations (unearned credit spreads).
., b. Possible cost or penalty calculations incurred due to launch early before due (early termination).
., c. occurrence of mismatch cash flow that causes prices to be affected by calculation of costs for borrowing and investing (investing and funding costs).
., d. Certain conditions have resulted in uncertainty in the valuation model for example, the inability to capture changes in abnormal conditions.
Section 17
.,, Verse (1)
., referred to as "certain factors" among other average and volatility of trade volume, the average volatility of the offer range of the quotation and the demand (bid/ask spreads), and the availability of market annotations.
Verse (2)
.,, the Adjustment will not reduce the value of the financial instruments in the balance sheet and does not affect the profit report.
Article 18
.,, pretty clear.
Section 19
.,, pretty clear.
Section 20
.,, Verse (1)
.,, the use of the rating agency and the recognized ranking in the Interest calculation calculation are in order to calculate the Specific Risk.
Verse (2)
.,, pretty clear
Section 21
.,, Verse (1)
.,, referred to by "Position of Devisa Neto" is the position of Devisa Neto as set in the provisions of the Bank of Indonesia that applies regarding the position of neto devisa.
Verse (2)
.,, pretty clear
Article 22
.,, Verse (1)
., clear enough.
Verse (2)
., clear enough.
Verse (3)
.,, the letter a
., referred to as "gross equity position" is the sum absolute value of long and short of any financial instrument exposed to the equities risk of each emiten on each financial market.
Letter b
., referred to as the "neto equity position" is the absolute value of the margin over the sum of the long position and the summation of the short short of any financial instrument exposed to the Equities Risk on each financial market.
Section 23
.,, pretty clear.
Section 24
.,, pretty clear.
Section 25
.,, Verse (1)
., clear enough.
Verse (2)
., clear enough.
Verse (3)
., clear enough.
Verse (4)
., including in a modified understanding of the use of the Internal Model among other changes in the Internal Model methodology, changes in information systems technology, and the expansion of the use of the Internal Model.
Prior to the modification of the use of the Internal Model obtained the approval of the Bank of Indonesia, the Bank continued to use the approved Internal Model for KPMM calculations.
Verse (5)
., clear enough.
Verse (6)
.,, pretty clear
Article 26
.,, Verse (1)
., referred to as "new products and activities" is the new product and activity as referred to in the Bank of Indonesia provision regarding the application of risk management.
Verse (2)
.,, Use of the Internal Models against new products and activities including the scope of the Internal Model modification.
Verse (3)
., clear enough.
Verse (4)
.,, pretty clear
Section 27
.,, Verse (1)
.,, Monitoring and evaluation of the use of the Internal Model include among other fulfillment requirements requirements of the Internal Model, back testing, and a stress testing report.
Verse (2)
.,, pretty clear
Article 28
.,, Verse (1)
.,, this Prohibition applies to the Market Risk measurement against approved products and activities using the Internal Model.
Verse (2)
.,, pretty clear
Article 29
.,, pretty clear.
Article 30
.,, pretty clear.
Article 31
.,, Verse (1)
.,, the Market Risk calculation Report among others includes reports of positions that are taken into account in Market Risk, report calculation of KPMM ratio.
Verse (2)
.,, reports related to the Internal Model include a value at risk calculation report and capital load, KPMM ratio calculation report, back testing, and stress testing report.
Verse (3)
., clear enough.
Verse (4)
.,, Example:
As per the provisions of the General Bank Report, the March 2008 position report was required to be delivered in the period of delivery III, which is dated 16 to 21 April 2008.
Verse (5)
.,, Delivery of the off-line is done with softcopy and hardcopy.
Section 32
.,, pretty clear.
Section 33
.,, pretty clear.
Article 34
.,, pretty clear.
Section 35
.,, Which is referred to a significant amount is significant to the total financial assets in the group available for sale.
Section 36
.,, pretty clear.
Section 37
.,, pretty clear.
Article 38
.,, pretty clear.
Article 39
.,, pretty clear.
Section 40
.,, pretty clear.
Section 41
.,, pretty clear.
