JAKARTA: Bank Indonesia will release a regulation to limit ratio of credit value that bank can be provided to maximum collateral. The regulation will be imposed to Islamic Banking industry as part of microprudential policy.
Loan to value ratio might be applicable this year, said Executive Director of Bank Indonesia's Islamic Banking Department Edy Setiadi.
"Since the first rule was out for a conventional bank, BI principle should also be set up for Islamic banks however time and date are still unclear," he said on Monday (8/13/2012).
Enforcement of regulations for Islamic banks need more time because they have limited data sources when compared to conventional bank, he explained.
The central bank cannot rely on existing data, either Bank Indonesia or industry data. Therefore, the central bank is collecting data through survey methods.
The collection is also intended to find correlation between non-performing finance and LTV. (T05/aph)
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