Asset quality assessment of Sharia banks
The Regulation on Asset Quality Assessment for Commercial Sharia Banks and Sharia Business Units of Bank Indonesia has been launched to promote and improve the application of prudential risk management principles in the Sharia-based banking industry and to update regulations on Sharia banking business in light of the introduction of the Law on Sharia Banking (21/2008).
In conlusion, the regulation requires Sharia-compliant banks and Sharia business units to assess and supervise their own asset activities and to be proactive in ensuring the liquidity of their productive and non-productive assets.
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