Thursday, June 24, 2010

BI plans EBA regulations

Bank Indonesia (BI) prepares new regulation on the assets-backed securities (EBA) in support of the investment instrument growth. EBA regulation in the future will not simply limited to housing, but also all economy sectors.
BI expected the asset in the future will be securitized not only limited to housing loan but also to other credit such as credit card.
Since the regulation on asset securitization-based investment enacted by the regulator of capital market in 2007 up to now, Indonesia only has collective investment contract of EBA on the basis of housing loan. The regulation on EBA will be drafted in the BI regulation under thorough scrutiny. The securitization product still has negative stigma following the subprime mortgage in US crisis few years before.
BI will cooperate with Bapepam-LK to draft the regulation noting that the institution here as it regulates asset securitization.

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