Wednesday, March 2, 2011

Indonesia may reduce deposit guarante

Indonesia may gradually reduce the maximum deposit guarantee at banks as a global economic recovery reduces the risk lenders will fail. Goverment, Bank Indonesia, and Lembaga Penjamin Simpanan/LPS (Indonesia's deposit insurance agency).
Indonesia raised the maximum guarantee for deposits at banks to IDR2 billion from IDR100 million on Oct. 13, 2008, as authorities from Europe to Asia tried to prevent the global financial crisis causing a run on their banks.
LPS proposed reducing the guarantee cap gradually. The agency was reduced the maximum deposit guarantee to IDR100 million from IDR1 billion on March 22, 2007.

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