ID :
23498
Thu, 10/09/2008 - 15:05
Auther :
Shortlink :
http://m.oananews.org//node/23498
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BI ASKS FOR INCREASE IN GUARANTY FUNDS FOR BANK CUSTOMERS
Jakarta, Oct 9 (ANTARA) - Bank Indonesia (BI/central bank) said the amount of bank customers' guarantee funds should be increased in order to provide certainty for bank customers amid the global financial crisis.
"We are now also considering it because several countries have raised their guarantee funds such as Brattain from 35,000 pounds sterling to 50,000 pounds sterling for individual customers and up to 100,000 pounds sterling for companies," BI Senior Deputy Governor Miranda Gultom said here on Thursday.
She said in the current global financial crisis almost all countries had adopted various polices to temporarily ease liquidity restrictions in order to restore the public's confidence.
"Thus, the public will feel secure about their funds as banks have a guarantee. We have made preparations for raising the the amount of guarantee funds," she added.
The Savings Guarantor Institution (LPS) had so far provided guarantee funds for customers' savings at a maximum of Rp100 million for each bank customer.
In order to reduce uncertainty and to prevent panic among the public, the central bank was also cooperating with the Ministry of Finance in maintaining the stability of the country's financial system by relaxing the minimum reserves requirement (GWM) and providing funds for bank reproduction.
Miranda said BI would also review regulations on the appraisal of commercial papers based on market value owned by banks as a calculation base. It was now a fact that he value of promissory notes were undergoing high fluctuations.
"It is impossible for BI to change mark-to-market regulations in order to help banks carry out adjustments because if they have commercial papers they have to follow mark-to-market regulations periodically," she said.
She said many countries had issued regulations that restricted mark-to-market steps until the maturity date and it would help.
"We are now also considering it because several countries have raised their guarantee funds such as Brattain from 35,000 pounds sterling to 50,000 pounds sterling for individual customers and up to 100,000 pounds sterling for companies," BI Senior Deputy Governor Miranda Gultom said here on Thursday.
She said in the current global financial crisis almost all countries had adopted various polices to temporarily ease liquidity restrictions in order to restore the public's confidence.
"Thus, the public will feel secure about their funds as banks have a guarantee. We have made preparations for raising the the amount of guarantee funds," she added.
The Savings Guarantor Institution (LPS) had so far provided guarantee funds for customers' savings at a maximum of Rp100 million for each bank customer.
In order to reduce uncertainty and to prevent panic among the public, the central bank was also cooperating with the Ministry of Finance in maintaining the stability of the country's financial system by relaxing the minimum reserves requirement (GWM) and providing funds for bank reproduction.
Miranda said BI would also review regulations on the appraisal of commercial papers based on market value owned by banks as a calculation base. It was now a fact that he value of promissory notes were undergoing high fluctuations.
"It is impossible for BI to change mark-to-market regulations in order to help banks carry out adjustments because if they have commercial papers they have to follow mark-to-market regulations periodically," she said.
She said many countries had issued regulations that restricted mark-to-market steps until the maturity date and it would help.
