Friday, July 18, 2014

FSA and DIA Improve Coordination to Strengthen Banking System

Financial Services Authority (FSA) conducted Signing Memorandum of Understanding with the Deposit Insurance Agency (DIA) on coordination and cooperation in order to link the implementation of the functions and duties of each of these institutions.

Chairman of the Board of Commissioners of the FSA, D. Hadad Muliaman said signatory is in line with the move it over, the functions and duties of banking supervision of Bank Indonesia (BI) to the FSA. Therefore, with the signing is expected, the FSA and DIA can do cooperation and coordination in the implementation of tasks in each institution.

"Banking supervision has been transferred to the FSA, so this partnership aims to improve the coordination between the FSA and DIA. Where the FSA itself supervise banking and HE as a guarantor of the bank, "said Muliaman, when signing a Memorandum of Understanding in complex BI, Jakarta, Friday, July 18, 2014.

Muliaman added that so far the development of its own banking performance when indicated by the capital adequacy ratio (Capital Adequacy Ratio / CAR) is still high at 19.8% and the ratio of non-performing loans (NPL) ratio is quite low on average by 1.9%. Therefore, to improve the performance of banks, need to be supported in setting increase an integrated financial services sector.

"We will strengthen the banking structure, with integrated risk management, good corporate governance and capital adequacy for integrated financial conglomerates," he said.

According to him, strengthening the banking industry also relies heavily on public trust. One of which is how to improve public confidence as depositors is a system of limited guarantee, which is a function of the DIA.

"FSA and DIA have a significant role in the financial system safety net, so that cooperation and coordination between the FSA and DIA in particular in the banking supervision needs to be done in a comprehensive manner and in synergy so that each institution can be running the duties," said Muliaman.

Furthermore, he added, while efforts in maintaining the stability of the financial system, especially the banking industry, eating cooperation is needed in terms of dealing with problem banks. "That is to prevent and if there is a crisis occurs then we must have a system that is effective at the lowest possible cost," said Muliaman.

The signing of a memorandum of understanding, there are several points of cooperation agreed upon that the first, the implementation of deposit insurance and supervision of banks. Second, coordination and follow-up results of the analysis of bank supervision, and coordination related to the third bank in the intensive supervision and surveillance of banks in particular.

The fourth point to coordinate the completion and handling of a failed bank, fifth points coordinating follow-up settlement bank license has been revoked. Then the sixth determination of a reasonable rate of interest in order to pay insurance claims and points last execution of other tasks including handling confidential nature of the data and information.

"The FSA and DIA need to construct and properly supervise the banking industry, it is necessary to coordination between us, and may exchange information that can be identified," Muliaman lid.

No comments:

Post a Comment