1 Disclosure of the Recovery Plan
PT Bank Central Asia Tbk
I. RECOVERY PLAN
In accordance with the Financial Services Authority Regulation No. 14/POJK.03/2017 concerning Recovery Plan for Systemic Banks, BCA as one of the systemic banks must compile and submit action plans to the Financial Services Authority.
Recovery Plan is prepared to respond to financial stress experienced by carrying out one or several recovery options so that banks can restore their financial condition and business viability.
The plan will be reviewed periodically and will be adjusted to the applicable rules and regulations.
BCA's Recovery Plan has been recorded in the supervision of the Financial Services Authority and has been approved by shareholders at the Annual General Meeting of Shareholders of PT Bank Central Asia Tbk.
II. RECOVERY OPTIONS
An overview of actions that BCA will take to overcome financial problems during a crisis is outlined in the form of Recovery Options, which are prepared based on 4 (four) main aspects, namely as follows:
A. Recovery Options for Capital Aspects among others by:
Issue subordinated bonds
Not paying dividends
Stop giving new credit
B. Recovery Options for Liquidity Aspects among others by:
Collateralized / sell securities owned
Utilizing Bank Indonesia’s Short Term Liquidity Loans C. Recovery Options for Profitability Aspects
among others by:
Cost efficiency
Increase interest and non-interest income
Increase billing activity
D. Recovery Options for Asset Quality Aspects among others by:
Tightening credit release standards
Proactive in managing debtors who will have problems
Increasing credit restructuring efforts
2
BCA has set the trigger level for each indicator to carry out each Recovery Option and the Recovery Plan will only be implemented when BCA is in an extreme financial crisis and faces serious challenges to capital/liquidity/profitability/asset quality conditions indicated by exceeding trigger level to implement each Recovery Option.III. COMMUNICATION AT THE IMPLEMENTATION OF RECOVERY PLAN
If BCA implements one or several Recovery Options to overcome financial problems, BCA will always communicate the situation that is being faced by BCA, with the following conditions:
Stakeholders will be informed about the situation being faced by BCA, with an integrated, comprehensive and consistent communication approach.
The Corporate Secretary will manage and control all communications (including communication on social media platforms), both written and oral, in accordance with directives from the Board of Directors regarding communication and information strategies that need to be communicated to stakeholders, both internal and external.
Communication to external parties will be coordinated by the Corporate Secretary together with related Business Units.
Communication to internal parties will be coordinated by the Human Capital Management Division. The Human Capital Management Division will coordinate with the Corporate Secretary to ensure the accuracy and consistency of information.
