Regulation No. 17/2023 by OJK on Governance for Commercial Banks contains several points related to bank dividends. According to Dian Ediana Rae, the head of OJK's Banking Supervision Executive, this regulation is much needed, especially to remind shareholders, owners, or controllers of banks to take appropriate actions in making policies. All of this is to encourage the financial industry to compete in a healthy manner and adhere to all supervisory principles.

The issuance of this regulation is also a continuation of the mandate of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector. This regulation also refers to international standards, including the Organization for Economic Cooperation and Development (OECD) and the International Finance Corporation (IFC), as a form of improvement.

Article 108 of POJK contains the obligation for banks to have a dividend policy and to communicate that policy to shareholders. In addition, this article also explains about the distribution of dividends as a form of fulfilling the rights of shareholders. The determination of dividend distribution must also consider all internal and external aspects that occur. OJK also regulates dividend distribution to use the bank's profit performance reasonably.

OJK also has the authority to order banks to limit, postpone, or even prohibit dividend distribution and/or hold an RUPS (General Meeting of Shareholders). This authority is taken into consideration of internal factors and the bank's condition, as well as various external factors and bank problems.

What is your opinion on this topic? Share your opinion with us. Don't forget to follow Digivestasi's Instagram, TikTok, and Youtube accounts to stay updated with the latest information about economics, finance, digital technology, and digital asset investment.