This technical note (TN) provides an assessment of the BI-SSSS system based on CPMI/IOSCO PFMI. The assessment was undertaken in the context of the International Monetary Fund and World Bank Financial Sector Assessment Program (FSAP) of Indonesia in October 2023. The objective of the assessment is to identify potential risks related to the BI-SSSS as an FMI that may affect financial stability. While safe and efficient FMIs contribute to maintaining and promoting financial stability and economic growth, they may also concentrate risk. If not properly managed, FMIs can be sources of financial shocks, such as liquidity dislocations and credit losses, or a major channel through which these shocks are transmitted across domestic and international financial markets.
Authors
- Disclosure Date
- 2024/11/05
- Disclosure Status
- Disclosed
- Doc Name
- Indonesia - Financial Sector Assessment Program : Technical Note - Assessment of the BI-SSSS Based on CPMI-IOSCO Principles for Financial Market Infrastructure
- Pages
- 46
- Product Line
- Advisory Services & Analytics
- Published in
- United States of America
- Rel Proj ID
- ID-Indonesia Fsap Update II -- P181009
- Unit Owning
- EFNFP
- Version Type
- Final
- Volume No
- 1
Table of Contents
- FINANCIAL SECTOR ASSESSMENT PROGRAM 1
- ASSESSMENT OF THE BI-SSSS BASED ON CPMIIOSCO PRINCIPLES FOR FINANCIAL MARKET INFRASTRUCTURE 1
- Finance Competitiveness and Innovation Global Practice The World Bank 1
- Assessor and Objectives 8
- 1. This technical note TN provides an assessment of the BI-SSSS system based on CPMIIOSCO PFMI. 8
- Scope of the Assessment 8
- Methodology and Information Used for the Assessment 8
- Regulation Supervision and Oversight of FMIs 12
- 20. 16
- General Organization 17
- Powers of BI to Operate an SSS 18
- Settlement Finality 19
- Non-existence of Zero-hour Rule 20
- Netting 20
- Segregation 21
- Protection of Customers Assets Collateral Management 21
- Delivery Versus Payment and Delivery Versus Delivery 23
- System Rules and Procedures 23
- Credit and Liquidity Risk Management 25
- Settlement 27
- Default Management 31
- General Business and Operational Risk Management 32
- Access 37
- Efficiency 39
- Transparency 41