Banks should produce prudent financial reports: Boediono

Vice President Boediono has urged bank managements to avoid forging financial reports, saying it will help regulators deal with a financial crisis.

"Our judgment as regulators is based on the quality of information, not only the accuracy of numbers. Banking reports should be accurate. There shouldn't be any reason to cover [something] up, all of us are feeling the losses. There shouldn't be window dressing," he said upon the opening of the 2010 Apconex on Wednesday.

He added that banks should improve corporate governance.

In 2008, the government had to save Bank Century (now Bank Mutiara) after the bank's capital nose-dived. The central bank, headed by Boediono at that time, failed to detect mismanagement within the bank.