353 Key functions of the Information Technology Steering Committee 354 Membership of the Information Technology Steering Committee and. 357 Frequency of the meetings of the Human Resources Advisory Committee in 2016 357 Human Resources Advisory Committee Work Realization Program 2016 357 The Board of Commissioners.
Loans
Faced with weak demand for loans in 2016, the Bank gradually reduced interest rates for both consumer and business loans. The bank will continue to strengthen its core transaction banking business, which will further encourage sustainable growth in third-party funds.
Third Party Funds
Net Income
BCA's NPL ratio is well within the bank's risk appetite and considerably lower than the industry average. BCA closely monitors developments in the macro economy and in the individual industry sectors both to take advantage of business opportunities and to mitigate risks that may arise.
Bank’s customers and to keep the Bank at the cutting edge of
Non-Performing
Current Accounts and
Capital
Cost )
Electronic Banking Transactions
Employee Turnover
Jahja Setiaatmadja President Director
Review of the Indonesian Economy and Banking Industry
BCA Strategic Steps and Performance in 2016
Improving Long-term Capabilities and Capturing Opportunities Amidst Challenges
Lianawaty Suwono Direktur Armand Wahyudi Hartono Wakil Direktur Utama Jahja Setiaatmadja Presiden Direktur Eugene Keith Galbraith Wakil Direktur Utama.
Challenges, Financial Performance and Target Achievements
Improving the Implementation of Corporate Governance
Changes to the Board of Directors
Performance Assessment of Committees under the Board of Directors
Corporate Social Responsibility
Business Prospects and Strategy Forecast for 2017
Appreciation to All Stakeholders
Djohan Emir Setijoso ( !%%
Review of the Economy and the Banking Sector in 2016
Performance Assessment of the Board of Directors
Supervision of BCA Strategic Actions
Implementing Good Corporate Governance
Changes to the Composition of the Board of Commissioners
Supervisory and Advisory Role to the Board of Directors
Performance Assessment of the Committees under the Board of Commissioners
Business Prospects as Viewed by the Board of Commissioners
Appreciation for All Stakeholders
From September 2, 1975, the name of the bank changed to PT Bank Central Asia (BCA). BCA has been aggressively expanding its branch network in line with the deregulation of the Indonesian banking sector.
Business development after 2000
BCA reorganized its organizational structure by creating the Transaction Banking Directorate to strengthen the integrated platform of the Bank's wide range of transaction products and services, and by creating Human Capital Management )'# ". 2016 Singapore Airline – BCA Travel Fair BCA and Singapore Airlines hosted the BCA travel fair with a variety of promotional offers for BCA customers and SQ customers.
Forum
BNP Paribas Spektra Schroder Dana Terpadu II Schroder Syariah Reksa Dana Campuran Pendapatan Tetap (IDR). Schroder Achievement Gebyar Indonesia II Schroder Dana Mantap Plus II Reksa Dana Pendapatan Tetap (USD).
GENERAL MEETING OF SHAREHOLDERS
BOARD OF DIRECTORS
PRESIDENT DIRECTOR Jahja Setiaatmadja
DEPUTY PRESIDENT DIRECTOR Armand Wahyudi Hartono
Oversee internal audit/risk management/compliance function of subsidiaries in conjunction with integrated corporate governance and integrated risk management application. Deputy President Director oversees and coordinates the management of subsidiaries. . ^ Compliance and Risk Management Director oversees subsidiaries' risks as part of integrated risk management.
BOARD OF COMMISSIONERS
DEPUTY PRESIDENT DIRECTOR # Eugene Keith Galbraith
Appointed as Managing Vice President of BCA at the 2011 Annual General Meeting of Shareholders and approved by Bank Indonesia on 25 August 2011. Managing Vice President of BCA responsible for the overall supervision of the Director of Network Distribution and Director of Transaction Banking and responsible for operational divisions, namely the Operational Strategy.
Subur Tan
He was appointed a member of the Risk Supervision Committee of BCA on September 30, 2016 based on the Decree of the Board of Directors No. Board of Directors No. He was appointed a member of the Integrated Governance Committee of the BCA on August 11, 2016 according to the Decree of the Board of Directors No.
Was appointed as a member of the Integrated Management Committee of BCA on 13 December 2016 according to the Decision of the Board of Directors No.
Largest Shareholders
Corporate Loan Portfolios by Industry Sectors
The Bank's commercial and SME loan portfolio amounted to Rp 149.3 trillion at the end of 2016, an increase of 3.7% compared to the previous year. Excellence in transaction banking has supported the Bank's lending performance in the commercial and SME segments. The increase in the number of NPLs was anticipated and remained within the limits of the Bank's risk appetite.
As of 2016, BCA operates 163 Prioritas branches at many of the Bank's branches, offering banking products and services.
RISK MANAGEMENT FOCUS IN 2016
To mitigate these risks, BCA has implemented an integrated risk management system that covers all risks faced by the bank and its subsidiaries. BCA has implemented a Risk Management Framework which is in line with the bank's business strategy, organizational structure, policies and guidelines as well as developments in banking infrastructure. The bank has restructured a total of Rp 6.5 trillion in loans, a relatively minimal amount that represents only 1.6% of the total loan portfolio.
Reliable and effective management of operational risk is key to maintaining the bank's position as a leading transaction bank in Indonesia.
INTEGRATED RISK MANAGEMENT
This solid capital base will support the planned expansion of the Bank's business by providing the ability to anticipate risks that may be encountered. BCA manages operational risk through an Operational Risk Management Information System (ORMIS), a web-based application that includes . ! +'X% >_:$ ) Risk Indicator, which are designed to raise risk awareness across the Bank and provide useful information that can be used to minimize and mitigate operational risk. In addition to these two mirror data centers, the Bank also maintains a Disaster Recovery Center (DRC) in Surabaya.
Surabaya DRC continues to be developed as part of the Bank's Business Continuity Management and is intended to function as a crisis and command center in the event of disruptions or natural disasters in Jakarta that may result in the loss of operational capacity of the data centers based in Jakarta.
INTERNAL CONTROL
Further information on the implementation of integrated risk management can be found on pages 158 - 161 of this report.
BCA AND SUBSIDIARIES’ RISK SELF-ASSESSMENT RESULTS
DISCLOSURE OF RISK MANAGEMENT
- BCA’s Application of Risk Management
- A. Active Supervision by the Board of Commissioners and the Board of Directors
- B. Adequacy of Risk Management Policies and Procedures, and Determination of Risk Limits
- D. Comprehensive Internal Control System
Risk Review Committee, established to ensure that the risk management framework provides adequate protection against the risks facing the Bank. The Bank's organizational structure adequately supports the implementation of sound risk management and internal control consisting of the Internal Audit Department, the Risk Management Unit (RMU), Compliance Unit, the Risk Management Committee and the Integrated Risk Management Committee. The internal control systems are embedded in each business and operational unit and # ' ' ' risk management.
To support the implementation of risk management, the Bank has detailed risk management policies, procedures and limits.
GENERAL MEETING OF SHAREHOLDERS
The adequacy and effectiveness of the internal control system is periodically checked by the Internal Audit Service, which is the third line of defense of risk management, in order to ensure the appropriateness of the implementation of internal controls. All management and employees of the bank have roles and responsibilities for the implementation and compliance of the bank's internal control systems.
EFFECTIVENESS OF BANK RISK MANAGEMENT SYSTEMS
BCA Capital
BCA has a capital plan drawn up by the board as part of the bank's business plan and approved by the board. The capital plan sets a healthy capital structure to support business development in the bank and its subsidiaries as a priority. The bank later distributed part of the 2016 net income in the form of a temporary dividend of Rp 70 per share paid on 22 December 2016.
In line with the business growth of the bank's subsidiaries in the future, BCA continues to regularly.
Disclosure of Risk Exposures and Implementation of Risk Management
In recent years, the Bank has gradually adjusted its dividend payout ratio to strengthen its capital, especially to support lending activities and new business activities. For the last dividend distribution, based on the decisions of the General Meeting of Shareholders of April 7, 2016, the shareholders approved the distribution of part of the 2015 net profit in the form of a cash dividend of Rp 3.9 trillion or Rp 160 per year. share (paid via an interim dividend ' )% > # dividend of Rp 105 per share paid on April 29, 2016). In 2015, the Bank made capital injections into BCA Syariah and BCA Sekuritas, as well as a subordinated loan to BCA Sekuritas that was used for a capital injection into BCA Life.
At the end of 2016, the bank's core capital alone was Rp. 105.5 trillion, which accounted for 95.8% of the bank's total capital, while the bank's additional capital alone was Rp. 4.7 trillion or 4.2% of the bank's total capital.
A. Disclosure of Credit Risk Exposure and Implementation of Credit Risk Management
- The Board of Commissioners approves the Bank’s $ ] &
- The Board of Directors is responsible for the preparation of credit plans and the formulation of
- Credit Policy Committee has the principal function of assisting the Board of Directors in formulating
- Credit Committee has the principal function of providing guidance for credit analysis, providing
The director of compliance and risk management signs credit settlement (write off '# '%% % assessment of the feasibility or suitability of credit applications taking into account the bank's overall risk appetite based on its risk level. BCA formulates risk management strategies in accordance with with the bank's overall business strategy based on the bank's risk appetite and risk tolerance level The bank measures credit risk according to the standard method in accordance with OJK Circular Letter No.
In calculating Risk Weighted Assets (RWA) for credit risk, the Bank refers to OJK Circular No.
B. Disclosure of Market Risk Exposures and Implementation of Market Risk Management
Management of the trading and banking book portfolio Management of portfolios exposed to interest rate risk (in the trading book) and currency risk is carried out by determining and monitoring the implementation of nominal limits (Net Open Position), Value at Risk Limits and Stop. Loss limits. Interest rate risk can arise from securities transactions and forward and swap transactions. The bank uses the profitability approach and the economic value approach to measure interest rate risk.
Monitoring and measurement of interest rate risk exposure on the bank portfolio is presented to the board/.
C. Disclosure of Operational Risk Exposure and Implementation of Operational Risk Management
- The Board of Commissioners and the Board of Directors ensure adequate risk management
- The Risk Management Committee ensures that the risk management framework provides adequate
- The Enterprise Security Work Unit protects and secures the information assets of the Bank,
- The Internal Audit Division assures that business risks are managed properly and evaluates the
- The Operation Strategy and Development Division assists the SKMR in implementing operational risk
- The Work Units (business units and support units) are risk owners responsible for risk management
Business units (business units and support units) are risk owners responsible for risk management are risk owners responsible for risk management in daily operations through the coordination and reporting of operational risk events to SKMR. RSA's primary function is to cultivate a strong risk culture and raise risk awareness as an important element of risk management. Based on this process and in coordination with the Risk Management Unit, the work units determine the controls that should be in place.
Risk management of new products and activities As the largest private bank in Indonesia, BCA provides a wide range of products and services and leads % $'# ' Bank's customers.
D. Disclosure of Liquidity Risk Exposure and Implementation of Liquidity Risk Management
In line with the latest technological advances, BCA continues to develop new digital products and activities. In managing the risk of new products/activities, BCA has implemented a system to help ensure that the development of new products/activities will not be implemented based on internal regulations that have been compiled in accordance with regulatory guidelines. Board of Directors and reports to the Board of Commissioners as part of active supervision by the Board of Directors and the Board of Commissioners.
Based on the LCR calculations in 2016, the bank's LCR ratio is above the minimum requirement, both on a bank-only and on a consolidated basis.
E. Disclosure of Legal Risk Exposure and Implementation of Legal Risk Management
The Corporate Planning Sub-Department of BCA is designed to support and monitor the formulation and implementation of the Bank's business plan and annual budget and work plan by preparing regular reports comparing the business plan and budget with their realization, including conducting reviews of both. Regular reviews of the bank's business plan and annual budget and work plan in accordance with business development and the state of the Indonesian economy. Disclosure of exposure to reputational risk and implementation of reputational risk management Reputational risk may arise as a result of a reduced level of stakeholder trust triggered by negative perceptions of the bank.
These reports are analyzed and used to assist the bank in developing a systematic complaint handling process.
H. Disclosure of Compliance Risk Exposure and Implementation of Compliance Risk Management
Active supervision of FC BCA by the Board of Directors and the Board of Commissioners. Formation of an Integrated Risk Management Committee to ensure that the risk management framework provides adequate integrated protection against all risks faced by the Bank and its subsidiaries. Finalization of the compilation of Basic Policies of Integrated Risk Management for the implementation of Integrated Risk Management.
Bank entities involved in the implementation of integrated risk management are: BCA Finance, BCA Finance Limited, BCA Syariah, BCA Sekuritas, BCA Insurance, Central Santosa Finance and BCA Life. Monitoring and mitigation processes and risk management information system ... customer limits and daily customer transactions that are regularly reported. PT CENTRAL SANTOSA FINANCE Active supervision by the Board of Commissioners and Board of Directors.
