Bank Indonesia indicated its appeal to take control in macro prudential surveillance of the banking sector.
Deputy Governor of Bank Indonesia Hartadi A. Sarwono said that the central bank owns macro economic data, enabling it to make appropriate decisions to warn the banks against macro prudential issues.
"With our database, Bank Indonesia can quickly identify specific sectors to which we must limit the credit disbursement. It will serve as early warning system to help banks minimize such non-performing loans in those sectors, "he said yesterday.
Regarding the activity coverage of the Financial Services Authority (OJK), he explained that there are options for the institution to oversee the micro prudential factor of the commercial banks. "We must distinguish between bank's supervision and the monitoring activity over the macro economic situation which is more called surveillance," he said.
Currently, OJK's bill draft has been submitted to the Parliament. The institution is expectantly established late by December 31, 2010
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