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OJK wants state-run lenders to work with regional development banks
The Financial Services Authority (FSSA) recommends that state-owned banks team up with regional development banks (BPD) to better channel economic growth in the regions
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he Financial Services Authority (FSSA) recommends that state-owned banks team up with regional development banks (BPD) to better channel economic growth in the regions.
OJK deputy commissioner for banking supervision Irwan Lubis said that one way to work together with the BPD was by acquiring some of their shares.
"The state-owned banks do not have to acquire a lot of the BPD's shares. Around 20 to 30 percent [of] shares is enough," Irwan said in Jakarta on Wednesday, as quoted by kompas.com.
Through the acquisition, he said that state-run banks could also disseminate education and information to the BPD on how to better manage their funds and minimize the effects of local political issues.
"It will be a good collaboration and the BPD will learn some lessons from the state-owned banks," he said.
Such collaboration would help strengthen Indonesian banking system, hence making the country more competitive and ready to face the launch of the much-anticipated ASEAN Economic Community (AEC) in 2015.
Separately, state-run lender PT Bank Negara Indonesia (BNI) president director Gatot M. Suwondo said that some of the BPD had a lot of money but did not yet have competent human capital to run the business.
"Thus, sometimes we are working with them to provide businesses with a syndicated loan. Hopefully this way will help them grow," Gatot said. (nfo)
