BI to improve supervision of banking system

Antara News, Tuesday, February 2, 2010 22:04 WIB

Jakarta (ANTARA News) - Bank Indonesia deputy governor Budi Rochadi said the central bank would increase its supervision on the country`s banking system in the future.

"There will be an improvement in the banking policies and regulations so that banks could play a greater role in the country`s economy based on prudential principles," he said in a meeting with House Commission XI here on Tuesday.

He said that would be one of the bank`s efforts to increase and tighten supervision and to prepare bank supervision infrastructure.

He said good governance had to be improved while supervision personnel also had to be increased and developed.

"Finally legal umbrella is also needed for bank supervisors," he said.

He said BI as a regulator had so far also conducted the function of a mediator as an alternative to settle banking disputes beneficial for customers` protection.

"This is in line with the consumers` protection program covering formulating clear and easily understood complaint submission mechanism," he said.

In carrying out its duties related to capital market he said BI had already taken steps such as coordinating with the Financial Institutions and Capital Market Supervising Agency (Bapepam LK) with regard to the discovery of non-banking products.

He said BI had also set up working units in its central and reginoal offices with members totalling 1,437 consisting of 871 in the central office and 566 in its branches.

"They are supervising 121 general banks and 2,296 BPR with total offices of 16,184," he said.