LPS Guarantees 99.94 Percent Of Commercial Bank Customer Accounts

JAKARTA - The Deposit Insurance Corporation reports that until the end of June 2024 it has guaranteed 99.94 percent of the total account or equivalent to 583,822,118 accounts for Commercial Bank customers.

Meanwhile, for customers of the People's Economy Bank (BPR) and Sharia People's Credit Bank (BPRS), LPS has guaranteed 99.98 percent of the total account or the equivalent of 15,381,828 accounts.

"LPS periodically continues to assess and evaluate the dynamics of deposit interest rates, banking performance, economy and SSK in relation to the Guarantee Interest Rate (TBP) so that it can remain accommodative in supporting economic recovery and banking intermediation," said Chairman of the LPS Board of Commissioners Purbaya Yudhi Sadive at a press conference in Jakarta, Friday, August 2.

Purbaya added, during the May 2024 regular determination period, the LPS Board of Commissioners Meeting (RDK) determined to maintain the Guarantee Interest Rate (TBP) at 4.25 percent for Rupiah deposits at Commercial Banks and 6.75 percent for Rupiah deposits at BPR, as well as 2.25 percent for foreign exchange deposits (valas) at Commercial Banks.

Purbaya said that the LPS policy in the field of deposit guarantees and bank resolutions was still directed to support economic performance, maintain SSK stability and maintain and increase public confidence in the banking system.

Purbaya explained that the LPS policy was taken through several steps, including monitoring the adequacy of deposit guarantee coverage according to the mandate of the LPS Law above 90 percent, and continuing to increase socialization activities regarding deposit guarantee programs and policy guarantee programs including optimizing the role of representative offices in the regions.

"Continue to carry out periodic assessments and evaluations of the Guarantee Interest Rate (TBP), especially the impact on liquidity and deposit interest rates," continued Purbaya.

Furthermore, another step taken is to make a quick payment process for guarantee claims for the deposited deposits of BPR customers.

Then increased cross-authorization coordination in the context of handling banks with the status of Banks in Restructuring (BDP) and Banks in Resolution (BDR), among others, in the process of checking banks (finished testing) and exploring investors.

In addition, intensive coordination was also carried out, especially between KSSK institutions in order to accelerate the completion of the implementation regulations for the P2SK Law.

"Finally, the acceleration of preparations for the implementation of the Policy Guarantee Program (PPP) through preparation from the regulatory side at the government and LPS regulatory levels, internal business processes, infrastructure, as well as fulfillment and improvement of the competence of human resources supporting PPP," he concluded.