Monday, August 20, 2012

INDONESIA - BANKING - BI to Apply Minimum Down Payment Regulation to Islamic Banks - JAKARTA: After a minimum down payment credit policy applied to conventional banks and multifinance since mid-June, Bank Indonesia will ensure to apply similar regulation to Islamic banking.

Bank Indonesia (BI) Islamic Banking Department Executive Director Edy Setiadi said the preparation of minimum down payment regulation for Islamic Bank needs more time because this type of bank has limited data resources compared to conventional banks.

"The principle is BI also has to make similar regulation for Islamic banks," he said yesterday (8/13).  (source)

According to Edy, the central bank cannot rely on the currently available data, both BI data and industry data. Therefore, BI is collecting data through survey.

The minimum down payment to be paid by the customers is set in the Circular Letter of Bank Indonesia No. 14/10/DPNP on the Application of Risk Management in Bank Giving Mortgage Loan and Motor Vehicle Loan.

For a motorcycle loan, customers must pay at least 25% down payment of the selling price. For non-productive four-wheeled vehicle at least 30% down payment must be paid, and to purchase productive four-wheeled vehicle, the minimal down payment to be provided is 20%. (T07/ms

Source:  - Aug 14, 2012

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