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All Journal Journal of Legal and Cultural Analytics (JLCA)
Rizki Pratama
Universitas Muhammadiyah Sumatera Utara
Law, Crime, Criminology & Criminal Justice

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Legal Certainty and the Harmonization of the Principle of Prudence: A Reconstruction of Bank Compliance Parameters in the Discourse on the Business Judgment Rule Rizki Pratama; Ida Nadirah
Journal of Legal and Cultural Analytics Vol. 5 No. 1 (2026): February 2026
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/jlca.v5i1.16373

Abstract

The banking sector plays a crucial role in national economic development and must operate in accordance with prudential banking principles. However, legal uncertainty arises due to the clash of norms between the regulations governing the Board of Directors' duties under Law No. 40 of 2007 concerning Limited Liability Companies (UU PT) and criminal liability under Law No. 10 of 1998 concerning Banking. This research aims to analyze the harmonization of these regulations and propose a reconstruction of prudential parameters to avoid the criminalization of business risks. The research adopts a normative legal method, and findings indicate that the lack of clear "compliance steps" parameters creates disparity in court rulings. The discretion granted to businesses under the Business Judgment Rule doctrine is sometimes misinterpreted, leading to criminal implications. The study recommends reinforcing the role of the Financial Services Authority (OJK) by instituting a Cease and Desist Order as a precondition for criminal law enforcement in compliance matters.
Co-Authors Ida Nadirah