OJK Released Banking Consolidation Rules. What Are the Impacts?

Summary

The Financial Services Authority (OJK) released OJK Regulation No. 12/POJK.03/2020 concerning the consolidation of commercial banks in a bid to strengthen the resilience structure of the banking industry while simultaneously encouraging the banks' efficiency.

The rules for the commercial banks’ consolidation, which took effect since March 17, 2020, eases provision for mergers and acquisitions. This regulation also regulates bank capital.

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