Conversion of Business Operations of Conventional Banks to Sharia Banks
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Intensive Supervision Special Supervision
1. BI considers the Banks condition deteriorates; and
or 2. There are violations of
banking regulations by the Board of Directors, Board
of Commissioners andor Controlling Shareholder
PSP.
BI will announce: 1. Banks that have been
determined as Banks under Special Supervision which
certain business activities being frozen and the reasons
for freezing them;
2. Improvements that must be performed by Banks andor
prohibitions that have been instructed by BI to Banks.
The said announcement must be put in 2 newspapers with wide
circulation and in BI homepage. On the other hand, in order to
balance information to public, if the condition of the Bank in
question is improving and no more categorized as Bank under
Special Supervision, BI will also make the announcements.
Banks which certain business activities are frozen must inform
the situation to their entire office networks.
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Banks Which Soundness Level Cannot Be Improved
Banks under special supervision that meet the criteria: a. Capital Adequacy Ratio 2;
b. GWM Ratio in rupiah 0; or c. Has passed the period of special supervision,
will be determined by BI as Banks which condition cannot be improved.
Banks with Systemic Impact
In the event Banks under special supervision are suspected to have systemic impacts, BI shall ask
the authorities, pursuant to the applicable laws and regulations, to determine whether or not the referred
Banks have systemic impacts. Besides, BI will also inform the Banks condition to LPS.
In the event Banks have been determined as Banks having systemic impacts and met the criteria of banks that cannot
be improved to sound banks, BI shall request the relevant authorities to decide on the handling measures of the
Banks in question. If the Banks have been determined as Banks without system impacts, the procedures are as
described below.
Banks with No Systemic Impact
In the event Banks under special supervision has no systemic impacts but still met the criteria of Banks that
cannot be improved into sound Banks, BI shall inform and request LPS decision to perform or not to perform rescue
to the Banks in question. In the event LPS decides not to rescue the Banks that
cannot be improved into sound Banks, BI shall revoke business licenses of the Banks in question after receiving
notification from LPS. Further settlements of the Banks which licenses have been revoked, shall be conducted by
LPS in accordance with the applicable regulations.