The Jakarta Post
Indonesian banks will be among those in Asia entering phase three of global banking reform more easily due to inherent conservatism since the 1998 Asian crisis, says the central bank.
The banking and monetary authority says stricter discipline under the third phase, which will gradually require banks to hold greater capital buffers, is already well in place given Indonesia’s banking industry.
Previously on Monday, global regulators agreed on new banking rules aimed at averting another financial collapse. The agreement, known as the Basel III accord, is designed to reshape the credit industry by imposing stricter discipline on credit cards, mortgages and other loans in a bid to prevent another financial meltdown as was triggered by the US sub-prime mortgage crisis.
Currently banks must hold back at least 4 percent of their balance sheet to cover their risks. The man...