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Efforts to Increase Core Capital for Core Capital Bank Group Base on Regulation

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Digitalisation: Opportunities and Challenges for Business (ICBT 2022)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 620))

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Abstract

This study aims to analyze the efforts made by the management of the core capital bank group 1 (KBMI 1) in Indonesia to increase the bank’s core capital. OJK Regulation Number 12/POJK.03/2020 concerning Consolidation of Commercial Banks in Indonesia stipulates a minimum bank core capital of IDR 3 trillion as of December 31, 2022. There are 30 commercial banks with core capital below IDR 3 trillion in 2021. This study uses the CAMEL and RGEC methods to analyze the bank’s health. The study results indicate that banks with a soundness predicate will easily attract investors, while banks with a relatively soundness and unsoundness predicate must work harder to ensure that core capital is met. The bank cannot meet the OJK provisions and will be downgraded to a BPR or BPRS. Efforts to increase capital can be made by offering to the parent company, not the parent company, and looking for investors. Companies already listed on the stock exchange can issue new shares or rights issues.

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Authors and Affiliations

  1. Department of Management, Faculty of Business and Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

    Nur Ellyanawati Esty Rahayu & Dessy Isfianadewi

Authors
  1. Nur Ellyanawati Esty Rahayu
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  2. Dessy Isfianadewi
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Correspondence to Dessy Isfianadewi .

Editor information

Editors and Affiliations

  1. Northern Cyprus Campus, Middle East Technical University, Kalkanlı, Türkiye

    Bahaaeddin Alareeni

  2. College of Business and Finance, Ahlia University, Manama, Bahrain

    Allam Hamdan

  3. University College of Bahrain, Manama, Bahrain

    Reem Khamis

  4. Lebanese American University, Beirut, Lebanon

    Rim El Khoury

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Rahayu, N.E.E., Isfianadewi, D. (2023). Efforts to Increase Core Capital for Core Capital Bank Group Base on Regulation. In: Alareeni, B., Hamdan, A., Khamis, R., Khoury, R.E. (eds) Digitalisation: Opportunities and Challenges for Business. ICBT 2022. Lecture Notes in Networks and Systems, vol 620. Springer, Cham. https://doi.org/10.1007/978-3-031-26953-0_5

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  • DOI: https://doi.org/10.1007/978-3-031-26953-0_5

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-26952-3

  • Online ISBN: 978-3-031-26953-0

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