BI to Evaluate Syariah Bank’s Condition
Tuesday, 30 January, 2007 | 16:44 WIB

TEMPO Interactive, Jakarta: Bank Indonesia (BI) has issued a regulation about public banks’ condition rating system based on Syariah principles.

The regulation number 9/1/PBI/2007 has been effective since January 24.

Yesterday (29/1), BI Deputy Governor Siti Chalimah Fadrijah, in a press statement, explained that the new regulation was issued because it was estimated that products and services of Syariah banking are and will be more various and complex, so the exposure to risks will also increase.

The rise of risk exposure, she said, will change Syariah bank’s risk profile which will then affect the bank’s condition rate.

Siti emphasized that Syariah public banks must perform evaluation over the bank’s condition three-monthly, comprising capital factor, asset quality, profitability, liquidity, sensitivity to market risks as also management.