OJK Redefines Provisions on Bank Examinations

The Financial Services Authority (“OJK”) has issued Regulation No. 41/POJK.03/2017 on Requirements and Procedures for Bank Examinations (“Regulation 41/2017”). As its title suggests, Regulation 41/2017 sets out in detail the obligation of banks to comply with examinations which are undertaken by the OJK, as part of the OJK’s oversight authority for the banking industry.Prior to the issuance of Regulation 41/2017, these same matters were regulated under BI Regulation No. 2/6/PBI/2000 on Requirements and Procedures for Bank Examinations (“Regulation 2/2000”). This new regulation basically makes no significant alteration to any of the provisions which were originally set out under Regulation 2/2000, aside from the transfer of authority from BI to the OJK as regards the supervision of said examinations.Bank ExaminationsThe OJK is authorized to examine the following parties: [1]