"We will not revoke it. But, as of now, other licenses will be issued for banks."Bangkok (ANTARA News) - Bank Indonesia is preparing a regulation that will require national banks to apply for an additional permit for corporate actions they wish to undertake in the future.
"BI will issue a multi-licensing policy aimed at strengthening supervision of banks," the central bank`s deputy governor Muliaman D Hadad said on the sidelines of the Asian Bankers` meeting here on Friday.
He stated that the new regulation would not revoke the earlier licence the central bank had provided to banks, because the additional permit was only for corporate actions that the banks planned to carry out in the future.
"We are following a single license system that allows banks to do everything they want once they get a license. We will not revoke it. But, as of now, other licenses will be issued for banks," Muliaman said.
As an example, he referred to providing an additional licence for a bank wishing to become a foreign exchange bank or open a new branch in a region or other island, based on the needs of the people in the region.
Muliaman said the demand for multi-licensing emerged because a number of countries did not provide a similar facility that BI provided to Indonesian banks wishing to open new branches in those countries.
He, however, noted that the country`s demand for reciprocal action had been met, especially in China, Malaysia, South Korea, and Singapore. Muliaman referred to Bank Mandiri`s plan to open a branch in Shanghai in May, following BI`s negotiations with the local banking authorities.
"In April, Malaysia opened its market after realising the importance of doing so to boost its banking industry," he said.
Muliaman said the multi-licensing policy was a step towards the ASEAN objective of improving connectivity within the banking industry in Southeast Asia by 2020.
He said the integration of banking industry in ASEAN is still being hampered by several factors such as human resources, financial infrastructure, regulations, and banking qualifications in five advanced and five backward banks in the ASEAN region.
"Communication for ASEAN members is important to open up on reciprocal principles and mutually beneficial cooperation," he said.
(Uu.H-YH/INE/KR-BSR/A014)
Editor: Priyambodo RH
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