Business won’t be affected by OJK’s sanction: BTN
The Jakarta Post
State-owned lender Bank Tabungan Negara (BTN) has said that the Financial Services Authority’s (OJK) ban on it from opening new bank accounts at its cash offices would not affect its overall business.
The authority has issued the ban as it investigates a time deposit slip forgery case in which several of the bank’s employees are implicated. The publicly listed lender is also barred from seeking third-party funds from marketing efforts and launching new branches.
BTN corporate secretary Eko Waluyo said the third-party funds from the cash office only contributed 8.5 percent to BTN’s total third-party funds.
In addition, the new account opening only constituted 10 percent of the whole accounts at its cash offices.
“If future customers want to open accounts in cash offices, they will be referred to branch offices,” Eko said Thursday as quoted by Kontan.co.id.
Existing customers, meanwhile, could still increase their saving at cash offices, he added.
BTN president director Maryono said the bank had maintained sufficient liquidity to anticipate such problems as it had allocated adequate provisions to cope with non-performing loans or losses.
In its 2016 financial report, BTN earmarked Rp 258 billion (US$19.4 million) in provisions to fraud cases.
According to the bank’s business plan (RBB) submitted to the OJK, its management projected loans to surge between 21 percent and 23 percent this year from the past year’s Rp 164.4 trillion, while third-party funds are expected to climb by between 22 percent and 24 percent from Rp 160.1 trillion. (byn)
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