Small Bank’s Possible Scenarios to Meet Minimum Core Capital


Small banks can be free of the Rp 3 trillion minimum core capital in 2022 in exchange for their independence. They have to become subsidiaries of bigger banks through acquisitions or mergers. reported that based on the Financial Services Authority’s bill on minimum core capital for conventional banks, the subsidiary banks only have to provide at least Rp 1 trillion of core capital. The obligation to have Rp 3 million of core capital will shift into the parent banks.

The Financial Services Authority will immediately formulate the policy to change the minimum core capital of conventional banks to Rp 3 trillion, currently below Rp 1 trillion. The financial regulator may apply a maximum sanction to the banks refusing to comply with the new regulation by degrading the status to microcredit banks. However, OJK will increase the minimum core capital gradually, Rp 1 trillion in 2020, Rp 2 trillion in 2021, and finally Rp 3 trillion in 2022.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and monthly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.