Indonesia | Financial Services Authority (OJK) Regulates Digital Banks

On 30 July 2021, the Financial Services Authority (“OJK”) has issued OJK Regulation No. 12/POJK.03/2021 on Commercial Banks (“POJK 12/2021”). POJK 12/2021 was issued to anticipate, amongst other things, a business development and banking trend including the development and innovation of information technology. One of the interesting topics of POJK 12/2021 is the introduction of provisions on digital banks.

Under POJK 12/2021, a digital bank is defined as an Indonesian legal entity bank (“Bank”) which provides services and engages in its business activities mainly through electronic channels without a physical office other than a head office or using a limited physical
office.

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