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Bank Indonesia calls on
Basel II accord
JAKARTA -
Indonesian banks are expected to implement the
Basel II accord - a revised international capital
framework - by 2008 to improve their performance,
the governor of Bank Indonesia (BI), Burhanuddin
Abdullah, said here on Tuesday.
"By 2008,
the national banking industry should have
implemented Basel II stipulations, so that our
banks and those of other countries share the same
working standards," Burhanuddin said.
He
said, as an initial move toward the implementation
of Basel II, the central bank has issued a
regulation on transparency and information on
banking products, which are expected to improve
banks' performance as well as protect their
customers.
In addition to the regulation
on transparency, BI has also issued seven
regulations on banking covering minimum lending
limits (BMPK), improvement of the quality of
assets, information system for debtors, assets
security, foreign loans, privileges for debtors in
Aceh, and settlement of customer complaints.
Under the regulation on BMPK, BI would
raise the lending limit for state enterprises or
for project financing of public interest and
infrastructure projects from 20% to 30% of the
capital of the bank in question.
On debt
payment in Aceh and Nias, Burhanuddin said, debts
of less than Rp5 billion (US$546,600) would be
considered as performing loans, referring to the
pre-tsunami situation.
Total loans
provided to Aceh have reached Rp4 trillion of
which Rp3.1 trillion came from banks in Aceh and
Rp900 billion from banks outside the province.
Burhanuddin said all credits in the
affected areas would be treated as credits for
restructuring until the end of January 2008.
The issuance of eight regulations are
expected to increase national bank loan by 20%, or
Rp103 trillion, Burhanuddin said.
(Asia
Pulse/Antara) |
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