Lawmaker supports new BI regulation on wealth management

A lawmaker has lauded the central bank (BI) plan to issue a new BI regulation (PBI) on wealth management, saying this would serve as guidelines for private banks operating in this field.

Kemal Azis Stamboel of the House banking commission said the heated competition within the banking industry had led banks to ignore certain standards in providing privileged services to their wealthier customers.

“This situation has resulted in an exclusive and non-transparent relationship between bank officers and their customers. This is dangerous,” Kemal said Wednesday as quoted by kompas.com.

He added that he hoped the new regulation could fix the existing system and improve the ethical standards of the private banking industry.

Kemal referred to the Citibank case in which Melinda Dee, one of the bank’s wealth managers, was accused of stealing her clients’ money from their accounts.