ID :
33820
Thu, 12/04/2008 - 10:51
Auther :
Shortlink :
http://m.oananews.org//node/33820
The shortlink copeid
BANK INDONESIA URGED TO IMPROVE SUPERVISION OF NATIONAL BANKS
Jakarta, Dec 3 (ANTARA) - Bank Indonesia was urged to improve and intensify its supervision over national banks which may have sold speculative products an action that may be detrimental to the national economy.
"Bank Indonesia has many qualified and professional officials who can locate banking problems, but they are not effective in coping with defiant banks. BI knows the problems, but its action is ineffective," H. Wibowo, a member of the House's Commission XI, said here on Wednesday.
"As the nation's central bank, Bank Indonesia can check and audit the banks around the clock by assigning qualified officials or asking for the assistance of the police and prosecutors," he said.
According to him, poor action in cracking down on "naughty" banks may have a psychological background, or other factors.
He further said if there are problems which have to do with supervision, the supervisors should have reported them.
"I heard a rumour that BI officers who are conducting an audit are threatened at gun point, which must also be reported to the police," he said.
If it has to do with the human resources, BI should make a better system. For example, a tour of duty should be conducted to improve supervision once in every six months to maintain the indepency of the banks.
However, he reminded that dangerous and speculative products should be audited and stopped. "And whidle BI has even been channeling vast amounts of funds, it will mean nothing to hunt the US dollar, unless speculative and risky products are stopped. Does BI have the ability to allocate one billion US dollars everyday."
In the meantime, Bank Indonesia Governor Boediono said the central bank will improve its supervision of the banks.
"I think an improvement in supervision is a must," Budiono said.
Earlier, some banks sold derivative products which may be detrimental to the rupiah stability. BI itself has issued a circular banning the issuance of speculative products such as double currency deposits and callable forward.
These products had been banned on account of jeopardizing and putting increased pressure on the rupiah.
"Bank Indonesia has many qualified and professional officials who can locate banking problems, but they are not effective in coping with defiant banks. BI knows the problems, but its action is ineffective," H. Wibowo, a member of the House's Commission XI, said here on Wednesday.
"As the nation's central bank, Bank Indonesia can check and audit the banks around the clock by assigning qualified officials or asking for the assistance of the police and prosecutors," he said.
According to him, poor action in cracking down on "naughty" banks may have a psychological background, or other factors.
He further said if there are problems which have to do with supervision, the supervisors should have reported them.
"I heard a rumour that BI officers who are conducting an audit are threatened at gun point, which must also be reported to the police," he said.
If it has to do with the human resources, BI should make a better system. For example, a tour of duty should be conducted to improve supervision once in every six months to maintain the indepency of the banks.
However, he reminded that dangerous and speculative products should be audited and stopped. "And whidle BI has even been channeling vast amounts of funds, it will mean nothing to hunt the US dollar, unless speculative and risky products are stopped. Does BI have the ability to allocate one billion US dollars everyday."
In the meantime, Bank Indonesia Governor Boediono said the central bank will improve its supervision of the banks.
"I think an improvement in supervision is a must," Budiono said.
Earlier, some banks sold derivative products which may be detrimental to the rupiah stability. BI itself has issued a circular banning the issuance of speculative products such as double currency deposits and callable forward.
These products had been banned on account of jeopardizing and putting increased pressure on the rupiah.