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The Regulation Of Bank Indonesia No. 3/21/pbi/2001 2001

Original Language Title: Peraturan Bank Indonesia Nomor 3/21/PBI/2001 Tahun 2001

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INDONESIA BANK REGULATION

NUMBER: 3/21/PBI/2001

ABOUT

OBLIGATION OF PROVISION OF THE MINIMUM CAPITAL BANK

GOVERNOR OF INDONESIA BANK,

DRAWS: A. that in order to create a healthy banking system

and being able to compete nationally and internationally, then

required customization of the bank ' s application structure accordingly

applicable international standards;

b. that in respect of such matters is required to adjust

against the provisions of the Capital Provision Obligation

Minimum of the General Bank in the Bank of Indonesia Regulation;

Given: 1. Act No. 7 of 1992 concerning Banking

(State Gazette 1992 Number 31, Additional

State sheet number 3472) as amended

with Act No. 10 of 1998 (Sheet

Country of 1998 number 182, Extra State Sheet

Number 3790);

2. Law No. 23 of 1999 on Bank Indonesia

(State Gazette 1999 number 66, additional

state sheet number 3843);

DECIDED ...

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DECIDED:

SET: INDONESIA BANK REGULATIONS ON LIABILITY

PROVISION OF THE MINIMUM CAPITAL BANK.

Article 1

referred to in this Bank of Indonesia Regulation with the Bank is the Bank

General as referred to in Law Number 7 of the Year 1992

on Banking as amended by Law No. 10

The year 1998 includes the foreign bank branch office.

Article 2

(1) The bank is obliged to provide a minimum capital of 8% (eight perhundred) of

weighted activates according to the risk of accounting since the end of December 2001.

(2) The Bank that cannot meet the provisions as referred to in paragraph

(1), will be placed in special oversight as set forth in

applicable provisions.

Article 3

(1) Modal as referred to in Article 2, for the Bank headquartered in

Indonesia consists of:

a. core capital; and

b. capital ...

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b. Complementary capital.

(2) The complementary Modal as referred to in paragraph (1) can only

be counted as high as 100% (one hundred perhundred) of capital

core.

(3) Modal as referred to in paragraph (1) is calculated by a factor

the anointing of all the Bank's inclusion.

(4) Modal as referred to in Article 2, for the foreign bank branch office

is a clean fund of the central office and other offices abroad (Net Head

Office Fund).

Section 4

(1) The core modal as referred to in Article 3 of the paragraph (1) letter a consists of:

a. capital is tuned, and

b. Additional capital reserve (disclosed reserve).

(2) The core modal as referred to in paragraph (1) is taken into account with

the decoding factor is a goodwill post.

(3) The additional capital reserve (disclosed reserve) as referred to in

paragraph (1) the letter b consists of from:

a. Add factor, that is:

1. Agio;

2. Capital Donation;

3. Capital General Backup;

4. Capital Destination Reserves;

5. Earnings last year after tax count;

6. Profit ...

-4-

6. The year's earnings run after a tax estimate of

50% (fifty-one hundred);

7. The difference between the financial statements of the overseas branch office;

8. Capital funding;

b. Suction factor, that is:

1. Disagio;

2. Loss of the past years;

3. The loss of the year is running;

4. Less margin of external branch office financial report

country;

5. The decrease in the inclusion rate on the portfolio available for sale.

(4) In the calculation of the profit or loss for the posts as referred to in

paragraph (3) must be issued the influence of the toughness tax calculation (deferred

tax).

(5) complementary Modal as referred to in Section 3 of the paragraph (1) letter b consists of

of:

a. Fixed assets revaluation fixed;

b. The general reserves of the productive asset elimination allowance are high-

high 1.25% (one hundred and twenty-five per ten thousand) of actives

weighted by risk;

c. Loan Capital (hybrid/quasi capital);

d. Subordination loans are as high as 50% (fifty

perhundred) of the core capital;

e. The increase in the inclusion rate in the portfolio is available for sale

up to 45% (forty-five perhundred).

Section 5 ...

-5-

Article 5

The bank is prohibited from committing a capital distribution or profit if the distribution is intended

resulting in the condition of the Bank's application not reaching the ratio as

referred to in Article 2 of the paragraph (1).

Article 6

Activa is weighted according to the risk as referred to in Section 2 consists of:

a. the balance sheet provided weighting at the credit risk level attached to

any activa post;

b. some posts in the list of commitment and commitment obligations (off-balance

sheet accounts) are given weighting and in accordance with the credit risk level that

is attached to each post after it is first taken into account with weight

conversion factor.

Section 7

(1) The calculation of new outposts in the balance sheet arising as a result of

changes in the applicable financial accounting, for purposes of calculation

weighted actives according to The risk is specified as follows:

a. for a valuable mail post (effect) purchased with the promise of resale,

The risk weight calculation is done based on the risk weight of the letter

is valuable or based on the risk weight of the opposing party

transaction (counterparty);

b. To ...

-6-

b. for co-opt-up posts, the risk weight calculation is done based on

the risk weight of the opposing party transactions (counterparty);

c. for derivatives bill posts, risk weighting calculations are performed based on

weighting The risk of a counterparty.

(2) The activating value calculation for the derivatives bill post is done after

taking into account netting agreement with a derivative liability post that

has a legal force that binds both parties.

Article 8

The violation of the provisions as referred to in Article 2 is subject to

administrative sanction in order of the Bank health level calculation.

Article 9

(1) Further provisions of this Bank of Indonesia Regulation specified in the Letter

The Bank of Indonesia.

(2) Throughout the Circular Letter Bank Indonesia as referred to in paragraph (1)

has not been issued then provisions in Indonesia Bank Circular Letter Number

26 /1/BPPP dated 29 May 1993 subject to Liability of Capital Supply

Minimum for General Bank and Mail Indonesia Bank Circulation Number

2/12/DPNP dated July 12, 2000 on the Productive Activa Assessment in

calculation of Weighted Aktiva according to Risk, remains in effect with

an adjustment to the provisions in the Bank of Indonesia Regulation (Indonesian: Indonesia) This.

Article 10 ...

-7-

Article 10

With the issuance of the Bank of Indonesia Regulation then:

a. Provisions as set out in Article 7 of the Bank ' s Board of Directors Decision

Indonesia Number 30 /11/KEP/DIR dated 30 April 1997 on Level

Public Bank Health;

b. Provisions as set out in Section I letter C of the Board of Directors

Bank Indonesia Number 30 /277/KEP/DIR dated 19 March 1998 on

Change of the Bank Indonesia's Board of Directors Decision Number 30 /11/KEP/DIR

date 30 April 1997 on the Public Bank Health Level,

adjusted to the provisions in this Bank Indonesia Regulation;

c. Provisions as set in:

1. Article 3 of the letter c, Article 8 and Article 9 of the Bank's Board of Directors

Indonesia Number 28 /64/KEP/DIR dated September 7, 1995 on

The General Bank Requirements Not Bank Devisa to the General Bank

Devisa;

2. Bank Indonesia's Board of Directors No. 26 /20/KEP/DIR date

May 29, 1993 on the Minimal Bank of Limitation Obligations, specifically

with respect to the General Bank setup;

3. Bank of Indonesia's Board of Directors No. 31 /146/KEP/DIR date

November 12, 1998 on Change of Bank's Decision Letter

Indonesia Number 26 /20/KEP/DIR dated 29 May 1993 on Liability

The minimum capital provision Bank;

revoked and stated does not apply.

Article 11 ...

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Article 11

The Bank of Indonesia Regulation is in effect from the date set.

Specified in Jakarta

On December 13, 2001

GOVERNOR OF THE BANK OF INDONESIA

SYAHRIL SALABYS

SHEET COUNTRY REPUBLIC OF INDONESIA 2001 NUMBER

DPNP

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EXPLANATION

UP

INDONESIA BANK REGULATION

NUMBER: 3/21/PBI/2001

ABOUT

OBLIGATIONS OF THE GENERAL BANK MINIMUM CAPITAL PROVISION

UMUM

As a banking crisis is known occurred in

Indonesia has led to a decrease in the decline of the

Bank sizeable. To address that of the Government and

Bank Indonesia has done various restructuring measures

and recapitalization of banking with one of the goals is

restore the bank ' s application conditions according to the standards

international as it was before the crisis

banking.

On the road with the target of banking recapitalization program as

is in the Joint Decision Letter of Finance Minister

Republic of Indonesia and Governor of Bank Indonesia Number

53 /KMK.017/ 1999 and No. 31 /12/KEP/GBI February 8,

1999 that confirms the achievement of the fulfillment liability ratio

minimum capital of 8% (eight perhundred) by the end of the year

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2001, then Bank Indonesia as the authorized authority

set up and oversees the bank by considering

development of implementation of the banking recapitalization program

setting the ratio change Capital provision obligations

minimum to 8% (eight perhundred) with Bank Regulation

This Indonesia.

In addition to the above, the change in liability ratio

The minimum capital is also considering the changes that occurs

in international standards such as the refinement of a method

is standardized in credit risk calculations (standardized

approach) and changes in financial accounting standards that

apply.

Given the development of the restructuring program and

the biggest risk in national banking is the credit risk then

at this time the bank ' s minimum capital obligations ratio

general only takes into account risk factors credit (credit risk).

However in time the Bank of Indonesia will also

take into account other risk factors such as market risk (market

risk) and operational risk (risk risk) at calculations

ratio minimum capital provision obligations.

SECTION BY SECTION

Article 1

Is quite clear.

Other than ...

-11-

Section 2

Verse (1)

Clearly.

Verse (2)

Clear enough.

Article 3

Verse (1)

Is quite clear.

Verse (2)

It is quite clear.

Verse (3)

The Bank's inclusion is a miscalculation in the calculation

capital which means that the entire Bank's inclusion activities must be

entirely supported with the Bank's capital. This is done

given the Bank ' s capital calculation has not been done

consolidation.

With the inclusion of the inclusion on Capital Bank then the value

The inclusion is not counted again in weighted activates

according to the risk of being given a risk weight of 0% (zero

perhundred).

In the sense of the Bank's inclusion, excluding the capital's inclusion

temporarily from a credit restructuring.

Verse (4)

One of the components Net Head Office Fund is the Venture Fund (Net

Inter Office Fund) as set out in the provisions of the Bank

Verse (3) ...

-12-

Indonesia in effect on the Requirements and Preamble Requirements

Branch Office, Associate Branch Office, and Representative Office

of the Foreign Bank.

Section 4

Verse (1)

The letter a

Within the specified capital component does not include recognition

the capital was ordered (capital stock) which is derived

of the shareholders ' debt as referred to in

Statement of Financial Accounting Standards (PSAK) Number 21

about the Equity Accounting.

The letter b

Is pretty clear.

Verse (2)

Clearly.

Verse (3)

The letter is

The number 1 to the Figure 4

Is pretty clear.

Number 5 and Number 6

Which are included in the profit component of the years

then and the year running profit is a value after

a calculated tax rate, unless

is allowed to compensate for the loss

in effect of applicable taxation.

about ...

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Shortage of elimination preliminary formation

productive assets by the Bank are cost components

charged at a running year profit.

Figure 7

Margin of more financial report office

branch may occur due to currency difference that

is used in the financial report.

The number 8

referred to the capital fund is the fund

which has been full-tuned for the purpose of adding

capital but not yet supported with completeness

requirements to be classed as capital

disepters such as the execution of the holder of the holder meeting

the stock and the approval of the base budget of the agency

in charge. To be counted as

a capital deposit fund then the funds must

be placed on a special account (escrow account)

and must not be retracted by the Shareholders.

The use of the funds in escrow account it must

with the approval of the Bank of Indonesia.

In terms of the capital fund funds are derived from the candidate

the bank owner then if based on the Bank's research

Indonesia, the prospective owner of the Bank or the funds not

eligible as a shareholder or capital,

then the fund cannot be regarded as

capital ...

-14-

the capital component, and can be retracted by the candidate

owner.

Letter b

Numbers 1 to Number 3

Pretty clear.

Figures 4

Difference in office financial report

branch may occur due to currency difference which

is used in the report financial.

Figure 5

In accordance with the financial accounting standards that

applies, logging in this post is done based on

market value (mark to market).

Thus this post represents less than market value by value

the acquisition of the Bank's inclusion in the company whose shares are recorded in

The Capital Market.

Verse (4)

The toughness tax (deferred tax) is a transaction arising

as a result of implementing the Financial Accounting Standards Statement

(PSAK) Number 46 of the Income Tax Accounting.

With the release of the toughness tax impact of the calculation

profit or loss then the liability tax activity is not calculated

in calculation Actives are weighted according to the risk of

given the weight of the risk of 0% (zero perhundred).

Number 5 ...

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Verse (5)

The letter a

Backup revaluation remains uncapitalized to

in a paid capital and or shared as a bonus stock

and or dividends.

The letter b and the letter c

Clearly.

Letter d

The restructured subordination loan is calculated

amounting to a reasonable value after a restructuring. Impact

The restructuring is recognized in accordance with the standard

applicable financial accounting.

The letter e

In accordance with applicable financial accounting standards,

the registrations in this post are performed based on values market

(mark to market).

Thus this post represents a more difference between

the market price with the acquisition value of the Bank's inclusion

at the company whose shares are listed in the Capital Market.

Section 5

The distribution referred to in the United States.

capital or profit among other payments

dividends, repurchase of Bank shares (treasury stock) and payment

bonus to caretaker (management fee).

Letter d ...

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If in the period of concerned the Bank suggests

a performance improved but the conditions of the application are not possible

to pay a bonus to the administrator (management fee), then

bonus payments can be delayed until the Bank

conditions allow for a bonus payment (management fee).

Section 6

referred to by the weighting of the conversion factor is the given weighting

against the commitment of commitment and contingencies so that it can be equated

with the asset activating.

Section 7

Verse (1)

Such balance sheet changes are derived from the standard change

applicable financial accounting regarding the registrations of posts that

previously noted on the list of commitment and contingencies

to be noted on the balance sheet.

Letter a

calculation of risk weights as set in Section

this Applies to other invoices that are guaranteed with

a valuable letter tied and blocked perfectly

so there is no risk in collateral thawing

if the opposite party is achievement.

The letter b and the letter c

Pretty clear.

Verse (2)

Pretty clear

Article 7 ...

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Article 8

Quite clearly.

Article 9

Verse (1)

It is fairly clear.

Verse (2)

It is pretty clear.

Article 10

Letter a

With this provision then the calculation of the application factor Banks in the calculation

adjusted health rate to be 8% (eight perhundred) since

calculation of the health level for the December 2001 position.

Letter b

Figures 1)

Pretty clear.

Figures 2)

Pretty clear.

Figure 3)

Quite clear.

Article 11

Quite clear.

Article 10 ...

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ADDITIONAL SHEET COUNTRY INDONESIA NUMBER