Draft Regulation on Assessment of the Soundness Level of Microfinance Institutions: Business Scale Will Determine Assessment Questions Under Upcoming Framework

The Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) is currently preparing a Draft Regulation of the OJK Board of Commissioners (“ Draft Regulation ”) on Health Level Assessment of Microfinance Institutions (“ Institutions ”). The Draft Regulation requires Institutions to maintain their health level and conduct self-assessments. The assessment covers five aspects (e.g. capital and solvency). [1]