New regulation to facilitate the transformation of foreign bank branches

On 23 December 2019, Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or OJK) issued Regulation No. 41/POJK.03/2019 on the Merger, Consolidation, Acquisition, Integration and Conversion of Commercial Banks. The regulation came into effect on 26 December 2019. The key change is the introduction of branch conversion and integration – mechanisms allowing foreign bank branches to become Indonesian banks. The regulation also introduces procedural changes designed to ensure execution certainty of bank M&A transactions, including extending the OJK’s role in supervising bank M&A.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Services (Financial and insurance activities)

• Sources:

  • Lexology, Indonesia introduces new regulation to facilitate the transformation of foreign bank branches into subsidiaries and refine M&A in the banking sector, https://www.lexology.com/library/detail.aspx?g=137f3943-85f9-4a3e-b37e-7bca2c0c1ac8&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2020-02-26&utm_term=, 21 Feb 2020
  • Conventus Law, New Regulation On Indonesian Bank M&A And Foreign Bank Branch Corporatisation, http://www.conventuslaw.com/report/new-regulation-on-indonesian-bank-ma-and-foreign/, 14 Jan 2020