The Financial Services Authority (OJK) will issue a new regulation for bank with regards to the opening of new office network. while ruling on the core capital allocation for banks that focuses on improving cost efficiency. This would hopefully lead into a cut in loan interest rate, which would support the competitiveness of the banks in facing the Asian Economic Society (MEA) era. On that note, banks with net interest margin (NIM) below 4.5% are entitled to get the incentives of lower minimum-required core capital allocation for office branches expansion.
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