"The order of Bank Indonesia for the opening of an escrow account was especially aimed at maintaining the credibility of banking industry as a form of bank customers` protection. This will make banks to be more careful with regard to funds mobilization or funding," he said here on Wednesday.
The order to Bank Mega indicated that customers with a goodwill would always be protected and in case a dispute occurred the bank concerned must open an escrow account with funds totaling as much as that being disputed.
The effort, Halim said, is part of BI`s efforts to continue to direct the development of banking industry to be the sixth pillar of the Indonesian Banking Architecture to materialize banking service consumers` protection and empowerment.
Bank Indonesia on Tuesday gave sanctions to Bank Mega in connection with funds disputes with PT Elnusa and North Sumatra`s Batubara district administration.
The central bank placed the sanctions after it assured that rules had been violated.
The sanctions include an order for Bank Mega to stop adding new customers and extend membership for Deposit on Call as well as Negotiable Certificate of Deposit for a year and opening new offices for a year as of May 24.
Bank Indonesia will also conduct a fit and proper test on PT Bank Mega Tbk.`s management and executives and instruct PT Bank Mega Tbk. to review all its policies and procedures especially on funding activities including target setting, limits on and authorities of its branch offices, cash service offices and individuals in nominal or interest rate terms, office`s working area regulation and new customer initiation mechanism.
Bank Mega has also been asked to improve its internal control functions and risk management including assuring sufficient number of auditors in each office, good checks and balances, supervision of the central bank on lower offices and implementation of the know-your employee principles.
The central bank has also ordered Bank Mega to fire employees below executive officials involved in the case of PT Elnusa and Batubara District administration.
(Uu.H-YH/O001)
Editor: Priyambodo RH
Copyright © ANTARA 2011
