Building Bank Resilience through a Bank Recovery Action Plan
Veda Praxis |
Nov 12, 2024 |
Strategy
The deadline for preparing the Recovery Action Plan in accordance with POJK 5/2024 falls at the end of November 2024 for banks that began operations before the end of 2023. This is an essential step to promote the growth of the banking sector and national financial stability. Banks that do not comply with this regulation may face fines of up to IDR 200 million.
POJK No. 5 of 2024 emphasizes the importance of every bank, not just those considered systemically risky, having a financial risk mitigation strategy through a Recovery Action Plan. This regulation aligns with the Financial Sector Development and Strengthening Law (UU PPSK), which mandates comprehensive stability for the financial sector. With this foundation, banks are expected to be prepared to face various potential financial crises that could impact stability and operational sustainability.
To support the banking sector in meeting these requirements, Veda Praxis has developed a guide that is expected to serve as a useful reference for stakeholders in the effective implementation of POJK No. 5 of 2024.
