OJK: There Are 37 Banks Whose Core Is Still Below Rp3 Trillion
JAKARTA - The Chief Executive of the Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae said that there are still 37 banks that have core capital below IDR 3 trillion as of July 2022."There are 24 general banks, including those in the process of consolidation and fulfillment of minimum core capital and 13 BPDs in the process of consolidation and fulfillment of minimum core capital," he said at a press conference in Jakarta, quoted from Antara, Wednesday, September 7.Dian said that in accordance with OJK Regulation Number 12/POJK.03/2020 concerning Consolidation of Commercial Banks in fulfilling consolidation schemes for general banks in fulfilling consolidation schemes, for banks that have core capital below IDR 3 trillion can form a Bank Business Group in terms of planned merger, smelting or integrating banks.Currently, according to him, all public banks have submitted plans for the fulfillment of minimum core capital through the Bank's Business Plan."Some banks are expected to carry out consolidation actions and foreign investors who show interest in entering the bank," he said.OJK, he continued, will continue to ask for a commitment from shareholders to increase capital and encourage corporate actions needed for the remaining time available.However, Dian has not been able to convey the names of the banks that will consolidate or obtain foreign investors because they will disrupt the negotiation process in the corporate action."We don't want to interfere with the ongoing negotiation process, this is a bit sensitive in corporate actions. Be patient, as we said earlier on December, the general bank will be achieved through mergers, acquisitions, and in the formation of KUB," he said.As for the consolidation scheme as regulated in the KUB POJK, there are five consolidation schemes for Commercial Banks with core capital of less than IDR 3 trillion, namely Merger, Disbursement or Integration (P/P/I), Takeover which is followed by P/P/I, then the formation of KUB for the bank that has been owned, the establishment of KUB because of Dissemination (spin off) UUS, and the establishment of KUB due to takeover.