BEI Intensifies Discussion with BPR for Capital Strengthening

Background on BMI Classification Removal

The Indonesia Stock Exchange (BEI) has been actively engaging with Bank Perekonomian Rakyat (BPR) to discuss potential capital strengthening through the capital market. This move comes as the Financial Services Authority (OJK) considers removing the classification of Bank Modal Inti (BMI) I, which could impact BPRs. The removal of this classification is part of OJK's efforts to enhance the banking sector's resilience and competitiveness.

BEI's Initiatives for BPRs

BEI Director I Gede Nyoman Yetna stated that the exchange has been sharing information with BPRs regarding the capital market, highlighting the appetite for sectoral diversification, including banking. Yetna emphasized BEI's openness to various sectors that could potentially enter the capital market, both financial and non-financial. However, as of now, no BMI I bank or unlisted BPR has officially announced plans for an initial public offering (IPO).

OJK's Guidance for Bank Consolidation

OJK has formally urged small banks, including those classified as BMI I, to conduct a comprehensive evaluation of their business performance, asset quality, capitalization, and long-term prospects. This guidance aims to encourage these banks to identify opportunities for consolidation, collaboration, and strategic synergy, which could strengthen their capital base, improve efficiency, and expand their business scale. OJK also stressed the importance of adopting good corporate governance (GCG) principles and adequate risk management in any consolidation or strengthening plans.

Conclusion

In conclusion, BEI's intensified discussion with BPRs for capital strengthening through the capital market is a significant development in the banking sector. As OJK considers the removal of the BMI I classification, it is essential for BPRs to explore opportunities for growth and consolidation. BEI's initiatives and OJK's guidance demonstrate the regulatory bodies' commitment to enhancing the banking sector's resilience and competitiveness.