"In the past, people used to think that foreign banks would never face problems."Jakarta (ANTARA News) - Bank Indonesia`s governor, Darmin Nasution, has urged people not to question the status of foreign banks in the country, in light of the recent crisis in the US and Europe.
"There are advantages and disadvantages of having foreign banks in Indonesia. So, one should not see the disadvantages alone," he said.
Darmin said the crisis in the US and Europe has affected many people. The public is worried about the negative impact of foreign banks in their respective countries.
"In the past, people used to think that foreign banks would never face problems. After the recent crisis, people`s perception has changed," he said.
He said if anything happened in central offices of foreign banks, Indonesians would feel the impact immediately.
Darmin said regulations vary from country to country. "One country may require banks to have a national entity while another country may allow banks to set up branches," he added.
He said Indonesia`s regulations on foreign banks are still under discussion.
(T.C005/Uu.H-YH/INE/KR-BSR/B003)
Editor: Priyambodo RH
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