9. Applicat ion of Risk M anagement f or Banks Conducting Activities Related to M utual Funds
In response t o t he st eadily expanding involvement of Banks in act ivit ies relat ed t o mut ual f unds, t here is
grow ing aw areness t hat t hese act ivit ies not only yield benefits but also incur various potential risks for Banks.
In this regard, Banks need to strengthen the effective ap p l i cat i o n o f r i sk m an ag em en t t h ro u g h t h e
implementation of prudential principles and protection of cust om er int erest . The scope of Bank act ivit ies
relat ed t o mut ual f unds covers act ivit ies of Banks as invest ors, Banks as m ut ual f und sales agent s, and
Banks as Cust odian Banks. The most import ant t ask t hat a Bank is required t o perf orm in support of
eff ect ive applicat ion of risk management is t o:
●
Ensure t hat any invest m ent m anager act ing as part ner in act ivit ies relat ed t o m ut ual f unds is
reg ist ered an d licen sed b y t h e cap it al m arket au t h o r it y in acco rd an ce w it h t h e ap p licab le
regulatory provisions;
●
Ensure that the mutual fund concerned has received a statement of effective registration form the capital
market aut horit y in accordance w it h t he applicable regulatory provisions;
●
Ident if y, measure, monit or, and cont rol risks arising from act ivit ies relat ed t o mut ual f unds.
In t he implement at ion of prudent ial principles, Banks are prohibit ed f rom any act ion, w het her direct ly, t hat
may cause a mut ual f und t o acquire charact erist ics resem bling t hose of Bank product s, f or exam ple,
savings deposit s or t ime deposit s.
10. Risk M anagement Certification for M anagement and Officers of Commercial Banks
In t he applicat ion of Risk M anagement on an eff ect ive basis, t he Bank is required t o f ill t he posit ions on t he
Bo ard o f Co m m issio n ers an d f o r t h e Ban k Risk M an ag er w i t h h u m an r eso u rces p o ssessi n g
compet ence and expert ise in risk management . The requirement f or management and execut ive off icer of
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Banks to hold Risk M anagement Certificates represent one aspect in assessment of t he compet ence f act or in
f it and proper t est . Banks are required t o plan and implement a human resources development program
in order t o build compet ence and expert ise in risk m an ag em en t . Five levels are st ip u lat ed f o r risk
management cert if icat es, based on t he hierarchy and organizat ional st ruct ure of t he Banks as f ollow s: level
1 – level 5. Risk management cert if icat ion may only be organized and held by Prof essional Cert if icat ion
Agency licensed by Nat ional Agency f or Prof essional Cert if icat ion BNSP. A risk management cert if icat e
issued by an int ernat ional agency or ot her agency out side Indonesia may be considered f or recognit ion
equivalent t o risk management cert if icat e issued by a prof essional cert if icat ion agency, if t he agency issuing
t h e cert if icat e is in t er n at io n ally reco g n ized an d accept ed; cert if icat es have been issued during t he last
4 years.
F. Other Regulations
1. Short Term Funding Facility FPJP for Commercial Banks
A bank experiencing a short t erm f unding diff icult y ren d erin g it u n ab le t o set t le liab ilit ies, w h et h er
generat ed t hrough t he clearing syst em andor due t o use of Int raday Liquidit y f acilit y at pre-cut t ime of BI-
RTGS, may obtain an FPJP from Bank Indonesia. A Bank may use FPJP insof ar as it holds high qualit y, liquid
collat eral w it h minimum value at t he amount of FPJP received. FPJP shall be guaranteed against high quality
collateral ow ned by the bank consist of Bank Indonesia Cert if icat e SBIs andor Government Securit ies SUNs
w it h condit ions:
●
Selling value of t he SBIs andor SUNs at least equal as value of t he FPJP;
●
SBIs w ith remaining maturity of not less than 3 w ork days
●
SUNs w it h remaining mat urit y of not less t han 10 w ork days.
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The t erm of each FPJP is 1 one day and m ay be ext ended on a consecut ive basis subject t o an overall
maximum FPJP t erm of 90 ninet y days.
2. Short Term Funding Facilit y f or Sharia Banks FPJPS