ANT, Yanuar Pribadhie
Bank Indonesia (BI) has officially transferred its regulatory and oversight functions over microprudential banking to the Financial Service Authority (OJK). The two institutions signed the Minutes of Acceptance in Jakarta on Tuesday.
Agus Martowardojo, the Governor of BI, announced that the transfer was completed in circumstances of a healthy banking industry and in accordance with all necessary procedures.
“BI and OJK would work together to achieve harmonized policies between macro and micro prudential matters to maintain stability on our financial system,” the Governor said.
Agus added that 1,150 BI employees have been transferred to the OJK. By not later than the end of 2015, these employees will be given the option of staying with the OJK or returning to BI.
“We hope these employees will work to the best of their ability and develop their careers at the OJK,” said Agus.
Meanwhile, Muliaman Hadad, Chairman of the OJK, commented that bank customers should not be worried about the transfer and all bank operations will continue to run normally.
“Business at banks will run as usual and won’t be affected by this transfer. To the contrary, we will perform a more integrated oversight,” stated Muliaman.
According to Muliaman, integrated oversight is increasingly important given that bank holding companies [banking groups] are becoming more sophisticated and increasingly require high level regulatory expertise and management.
To address this, the OJK will issue new regulations on risk management for overseeing banking group subsidiaries.
“We will communicate and announce these ‘guidelines’. Further, communication between the Government and financial service providers is also important in dealing with these issues, including determination of impacts on banks and the banking system,” concluded Muliaman.
(hot/kc)
ANT, Yanuar Pribadhie
Bank Indonesia (BI) has officially transferred its regulatory and oversight functions over microprudential banking to the Financial Service Authority (OJK). The two institutions signed the Minutes of Acceptance in Jakarta on Tuesday.
Agus Martowardojo, the Governor of BI, announced that the transfer was completed in circumstances of a healthy banking industry and in accordance with all necessary procedures.
“BI and OJK would work together to achieve harmonized policies between macro and micro prudential matters to maintain stability on our financial system,” the Governor said.
Agus added that 1,150 BI employees have been transferred to the OJK. By not later than the end of 2015, these employees will be given the option of staying with the OJK or returning to BI.
“We hope these employees will work to the best of their ability and develop their careers at the OJK,” said Agus.
Meanwhile, Muliaman Hadad, Chairman of the OJK, commented that bank customers should not be worried about the transfer and all bank operations will continue to run normally.
“Business at banks will run as usual and won’t be affected by this transfer. To the contrary, we will perform a more integrated oversight,” stated Muliaman.
According to Muliaman, integrated oversight is increasingly important given that bank holding companies [banking groups] are becoming more sophisticated and increasingly require high level regulatory expertise and management.
To address this, the OJK will issue new regulations on risk management for overseeing banking group subsidiaries.
“We will communicate and announce these ‘guidelines’. Further, communication between the Government and financial service providers is also important in dealing with these issues, including determination of impacts on banks and the banking system,” concluded Muliaman.
(hot/kc)