Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) proposes to Bank Indonesia (BI) that the corporation could involve in bank investigation particularly those in the intensive monitoring category.
Chief Executive of LPS Firdaus Djaelani said the action is very helpful to the institution for making calculation and ensuring the lowest cost on the bailout scheme to a non performing bank. "So far, when there is bank under special supervision, BI asks our involvement to the probe. But it is better when there is new bank under intensive supervision, LPS is involved for investigation," he said recently.
In case it could be done, LPS could map a bank condition and estimate whether the entity here deserves bailout or liquidation.
Chief Executive of LPS Firdaus Djaelani said the action is very helpful to the institution for making calculation and ensuring the lowest cost on the bailout scheme to a non performing bank. "So far, when there is bank under special supervision, BI asks our involvement to the probe. But it is better when there is new bank under intensive supervision, LPS is involved for investigation," he said recently.
In case it could be done, LPS could map a bank condition and estimate whether the entity here deserves bailout or liquidation.
But, Head of public relation of BI Difi A. Djohansyah considered it lack of legal basis when LPS involves in healthy bank probe.
So far LPS has usually involved in a bank investigation with special surveillance unit (SSU). Besides, all data is given to LPS on unhealthy bank. "So, from the condition, they could make an evaluation," said Difi.
So far LPS has usually involved in a bank investigation with special surveillance unit (SSU). Besides, all data is given to LPS on unhealthy bank. "So, from the condition, they could make an evaluation," said Difi.
In other countries like USA, an LPS-like institution could probe a bank but it depends on the type noting that there is central regulation and federal regulated bank.
"So, LPS is also in the form of FDIC [Federal Deposit Insurance Corporation] and FSLIC [Federal Saving and Loan Insurance Corporation]," she added.
Besides, there is also surveillance done by The Fed and OCC (Office of Currency Comptroller). "So, there are many overlapping and thus Obama (USA President Barack Obama) has boosted that the surveillance function in US needs reforming," she said.
LPS currently is studying to cut down the maximum insurance into IDR250-300 million as from the current IDR2 billion as part of the exit strategy efforts.
In 2006, LPS handled 23 people's credit banks (BPR) with license revocation by BI with the total of paid insurance claims of IDR543.12 billion as from the deposit payment worthiness of IDR595.2 billion.
Data of LPS shows the bank customers deposit distribution per March 2010 is still dominated by the huge amount of deposit out of insurance.
The customers deposit worth IDR2-5 billion stands totally at IDR186.12 trillion as from 60,071 accounts.
The expensive fund at bank standing above IDR5 billion is totally worth at IDR753.87 trillion as from 32,775 account holders.
Considering the premium imposition scheme to finance industry by the Finance Service Authority (OJK), Firdaus said it is no problem. "It needs talk involving the industry and OJK."
Chief of Bapepam-LK A. Fuad Rahmany said the fee for OJK is far lower than the premium paid by bank to LPS or 0.2 percent as from the total of the third party funds amount.
He even believed the bank industry is not burdened at all with such premium payment. But he still declined to unveil the exact figure.
"It is not much and the payment is not at all burdensome. It is surely far lower than the premium paid to LPS. I don't need to mention it, just wait and see," he said.
Based on Chapter II Article 32 paragraph 1 of the OJK draft bill it is mentioned that the institution budget and work plan will be funded by the finance service industry fee. In the governing provision, finance industry is the institution and finance service activity.
Fuad said the fee payment should have been the obligation for finance service industry. "Actually it is subject to payment anywhere but Indonesia noting that the government has paid it so far."
"So, LPS is also in the form of FDIC [Federal Deposit Insurance Corporation] and FSLIC [Federal Saving and Loan Insurance Corporation]," she added.
Besides, there is also surveillance done by The Fed and OCC (Office of Currency Comptroller). "So, there are many overlapping and thus Obama (USA President Barack Obama) has boosted that the surveillance function in US needs reforming," she said.
LPS currently is studying to cut down the maximum insurance into IDR250-300 million as from the current IDR2 billion as part of the exit strategy efforts.
In 2006, LPS handled 23 people's credit banks (BPR) with license revocation by BI with the total of paid insurance claims of IDR543.12 billion as from the deposit payment worthiness of IDR595.2 billion.
Data of LPS shows the bank customers deposit distribution per March 2010 is still dominated by the huge amount of deposit out of insurance.
The customers deposit worth IDR2-5 billion stands totally at IDR186.12 trillion as from 60,071 accounts.
The expensive fund at bank standing above IDR5 billion is totally worth at IDR753.87 trillion as from 32,775 account holders.
Considering the premium imposition scheme to finance industry by the Finance Service Authority (OJK), Firdaus said it is no problem. "It needs talk involving the industry and OJK."
Chief of Bapepam-LK A. Fuad Rahmany said the fee for OJK is far lower than the premium paid by bank to LPS or 0.2 percent as from the total of the third party funds amount.
He even believed the bank industry is not burdened at all with such premium payment. But he still declined to unveil the exact figure.
"It is not much and the payment is not at all burdensome. It is surely far lower than the premium paid to LPS. I don't need to mention it, just wait and see," he said.
Based on Chapter II Article 32 paragraph 1 of the OJK draft bill it is mentioned that the institution budget and work plan will be funded by the finance service industry fee. In the governing provision, finance industry is the institution and finance service activity.
Fuad said the fee payment should have been the obligation for finance service industry. "Actually it is subject to payment anywhere but Indonesia noting that the government has paid it so far."
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