Bank of Victoria Multiplies Bancassurance Premium

This year Bank of Victoria would double the premium income. This is consistent with the achievement of premium revenue to close the year 2014 amounting to IDR 120 billion. PT Bank Victoria International Tbk (Bank Victoria) until the end of 2014 recorded a premium income of insurance products in the form of bancassurance for IDR 120 billion. Previously, Bank Victoria only targets premium income of IDR 100 billion.

Deputy CEO of Bank Victoria Anthony Soewandy revealed, this year the Bank of Victoria would double the premium income. This is consistent with the achievement of premium revenue to close the year 2014 amounting to IDR 120 billion. In fact, the target is only IDR 100 billion.

"Since last year's achievement passed through the target, we believe that we have the capability and the existing cooperation, Bank Victoria could get premium income of IDR 200 billion," said Anthony, met on the sidelines of the launch of VIP Pro Invest, on Tuesday , January 27, 2015.

In order to increase its premium income from bancassurance side, until now the Bank of Victoria has worked with a number of insurance companies, such as Generali Life Insurance Indonesia, BNI Life Insurance, FWD Life, Manulife, and Sinarmas MSIG.

"The biggest bancassurance premium income of Generali Insurance Indonesia. If we assume 100%, then the portion of Generali Life Insurance Indonesia contributed approximately 65% of the premium income, "added Anthony.

BRI Opens Branchs in Singapore

Although has a network of more than 10 thousand units in Indonesia, BRI does not turn a blind eye to remain overseas expansion. PT Bank Rakyat Indonesia (Persero) Tbk (BRI) intends to increase its overseas network by opening offshore branch in Singapore. Although not able to run a full service activities as a full branch, the company remains optimistic about the network's presence in Singapore.

"We're going to create a branch in Singapore. Assess our business there. Target completion this year, "said Acting Director of BRI, Asmawi Syam, in Jakarta, recently.

Associated with the opening of a branch office outside the country, before the company already has three branches outside Indonesia, namely in New York, Caymand Island and Hong Kong. Despite having a business focus in the retail sector, particularly in micro, small and medium enterprises, entrepreneurs share of BRI still aiming for Singapore.

"Singapore, many workers there. Employers much there, "said Asmawi.

Corporate Secretary of BRI, Budi Satria added, it does not open a branch office (full branch) in Singapore which is much more stringent licensing requirements. Banking authority in Indonesia was struggling to put forward the principle of equality or resiprokalitas with banking authorities in Singapore.

"So, offshore branch, the activity should not be limited as to take funds (deposits) from Singapore customers. We are processing licenses, "said Budi.

FSA Collects the Financial Services Industry Performers

FSA Board of Commissioners Chairman, and the Government will provide the direction and outlook for the financial services industry related to the role of the financial services industry to the economy of Indonesia. Financial Services Authority (FSA) collects 671 invitees from state institutions to the leadership of the financial services industry actors banking, capital markets, Non Bank Financial Industry (NBFI), along with several associations of the financial services industry.

Mandiri Bank Embraces Three Foreign Banks to Develop Repo Market

Mini Master Repo Agreement Implementation is done by exploiting the use of standard contracts in repo transactions / reverse repo interbank. PT Bank Mandiri (Persero) cooperates with three foreign banks, the Bank of Tokyo-Mitsubishi UFJ, JP Morgan Chase Bank and Hongkong & Shanghai Banking Corp. (HSBC). This cooperation to strengthen the financial markets through the use of services repurchase (repo) / reverse.

IDR 9 trillion Rights Issue, Mandiri Bank Ready to Compete in ASEAN

The additional capital for Bank Mandiri's rights issue will be used to strengthen limit Lending Limit (LLL). Strong capital becomes important for national banks to be able to compete with other Asean countries. The existence of these conditions, the government through the Ministry of State-Owned Enterprises (SOEs) will provide additional capital in one state bank PT Bank Mandiri Tbk. According to Director of Bank Mandiri, Budi Gunadi Sadikin, the capital increase will be carried out through the issuance of new shares scheme alias rights issue in 2015. He claimed, of the rights issue the company will obtain fresh funding which is expected to IDR 9 trillion.

This year, Credit Hard Grow Above 20%

Economist at Standard Chartered Bank Indonesia Ichsan estimates, the growth of bank lending in 2015 is difficult to reach 20%. Credit disbursement is expected to grow just below the rate of 20%.

"Because there is a policy Funds rate hike, credit will not rise much. Credit can not grow above the 20% ", said Fauzi, encountered in the hospitality event held the Financial Services Authority (FSA), FSA Central Office, Jakarta, Monday, January 5th, 2015.

However, Fauzi assess the inflation rate will not fluctuate too high, so as not to burden the industry's growth in 2015. In fact, the decline in oil prices will have a positive impact. "The impact of inflation is positive due to two factors. One Fed Rate. Both oil prices go down, "he said.

Meanwhile, on the same occasion, the Chairman of the Board of Commissioners FSA, Muliaman D. Hadad said the government's policy to reduce the price of fuel oil (BBM) as Premium and Diesel, is expected to grow the bank lending above the average Bank Business Plan (RBB 2015).

According to him, the government policy of lowering fuel prices provide a space for public consumption. "Thus, the tightness of bank liquidity is expected to be resolved," he said.

Furthermore, he added, the reduced problem due to tight liquidity in the banking believed to encourage credit growth to exceed the target average in the RBB in 2015 by 16%.

"I hope that this year could be slightly reduced liquidity pressure, then the credit growth will be slightly higher than the Bank's Business Plan submitted to our banks for 2015," said Hadad.