BI Limit Expansion of Foreign Banks
Bank March 2nd, 2010
Bank Indonesia berrencana restrict foreign banks operating in Indonesia, especially for segmentation and regional operations. However, the Central Bank will not restrict foreign ownership of banks in Indonesia because it is bound by the agreement of the World Trade Organization (WTO).
This was revealed by Senior Deputy Governor and Acting Governor of BI Nasution Nasution in Jakarta, Friday (8 / 1). According to him, the Central Bank was bound by the global agreements that can not just limit foreign ownership in Indonesian banks. However, bank regulators have the authority to limit operations in foreign banks.
“If it (the problem of ownership) we have bindings (tied) in the WTO’s so-diutik not utik. It’s more on how to open a branch, how the operations area. It means we can not also deny that we had agreed at the WTO.’s Name for people angry, will be considered a promise, “said Nasution.
However, Nasution admitted keberpihakannya on foreign bank ownership restrictions. One of them by encouraging smaller banks to merge with other national banks. This is to prevent the acquisition or annexation by foreign banks. In addition, the Bank plans to give leeway in terms of minimum capital ownership have been the drivers of a small number of banks falling into foreign banks.
