IMPROVEMENT IN QUALITY OF BANK MANAGEMENT AND OPERATION
"Building of good corporate governance for internal strengthening of the national banking system"
This program is focused on improving good corporate governance (GCG), quality of risk management, and the operational capabilities of management. It is expected that higher standards of GCG supported by strong operational capability (including risk management) will strengthen bank operational performance. The national banking system is thus expected to achieve significant gains in internal strength over the next two to five years.
:: Phase of Implementation
| No | Activity (Pillar IV) | Implementation Schedule |
|---|
| 1 | Building Good Corporate Governance (GCG) | |
| | a. Establish minimum standards of GCG for conventional and sharia banks | 2004-2007 |
| | b. Require banks to perform self-assessment of CGC implementation | 2007 |
| | c. Encourage banks to go public | 2004-2007 |
| 2 | Improve the quality of bank risk management | |
| | a. Require certification for risk managers at conventional and sharia banks | 2004-2007 |
| | b. Improve the quality and standard of Rural Banks and Sharia Rural Banks human resources through professional certification programs for Rural Banks and Sharia Rural Banks bank directors | 2005-2008 |
| 3 | Strengthening bank operational capacity | |
| | a. Encourage banks to initiate sharing of use of operational facilities to curb costs | 2006-2008 |
| | b. Facilitate education and training to strengthen bank operational capacity | 2006-2008 |
