OJK Amends Provisions on the Calculation of Risk-Weighted Assets for Sharia Banks

In a bid to further bolster the growth of housing sector financing, as well as to boost foreign exchange through the provision of export-oriented funding, the Financial Services Authority (Otoritas Jasa Keuangan- “ OJK ”) has issued Circular (“ Amendment ”) which amends Circular of the OJK on the Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Sharia Banks (“ Circular 34/2015 ”).The Amendment redefines provisions relating to risk-weighted assets (Aset Tertimbang Menurut Risiko– “ ATMR ”) for credit risk using the standard approach for sharia banks and addresses the following areas: