Monday, October 6, 2014

FSA Policy Prevents Deposit Rate War

FSA policy to limit interest on deposits in banks BUKU 3 groups, and BUKU 4, will put the brakes on inter-bank deposit rate war. In line with the directives of the Financial Services Authority (FSA) restrictions related deposit rates for major banks in Indonesia, is expected to alleviate the deposit rate war going on lately.

According to banking analysts, Paul Sutaryono, with the FSA policy is expected to put the brakes on the interbank deposit rate war. "The FSA policy worthy of appreciation, because slowly but surely, it will put the brakes on war policy interest rates on deposits," he said, in Jakarta, Friday, October 3, 2014.

He considered, by curtailing the deposit rate at the major banks, it will have an impact on interest rates because of the cost involved thinning decreased funding. "But if the liquidity into melt? I think not, because the policy is automatic only for deposits above IDR 2 billion, "he said.

As is known to limit the FSA for the provision of deposit large depositors with funds in over IDR 2 billion, up 200 basis points (bps) above the BI rate for the group BUKU 4 (maximum 9.5%), and a maximum of 225 bps above the BI rate to BUKU group 3 (9.75%).

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