Bank Neo Commerce Maintains Independence Amid OJK's KBMI I Phase-Out

No Immediate Merger Plans

PT Bank Neo Commerce Tbk (BBYB), listed on the Indonesia Stock Exchange, has declared that it is not currently considering a merger despite the upcoming elimination of the KBMI I category by the Financial Services Authority (OJK). The OJK has been encouraging consolidation among banks in the KBMI I category, as they will need to increase their core capital to at least Rp 6 trillion to be reclassified under KBMI 2.

Focus on Product Expansion

Eri Budiono, CEO of Bank Neo Commerce, stated that the bank is not considering merger options at this time. Following receipt of OJK's letter, the bank has begun assessing the new regulations. Budiono emphasized that capital increase is not the bank's current priority. Instead, Bank Neo Commerce is concentrating on expanding its product offerings to enhance its market position.

Regulatory Context

The OJK's decision to eliminate the KBMI I category is part of a broader effort to strengthen the banking sector through consolidation. Banks currently classified under KBMI I have limited capital and are expected to either increase their capital or consider mergers to meet the new requirements. The regulation aims to create a more robust banking industry by encouraging larger, more stable financial institutions.