LPS Chairman Asks Banks To Apply Product Transparency To Customers

Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadewa. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadewa, emphasized the importance of banking transparency to customers, especially when offering deposit products, especially if the deposit interest rate exceeds the LPS Guarantee Interest Rate (TBP).

"According to regulations, each bank is required to place proof of participation in the LPS guarantee program, an announcement of the guaranteed interest rate that is considered reasonable and the maximum value of deposits guaranteed by the LPS. Then the bank must also include a statement that the bank is a participant in the LPS guarantee in every offer or promotion of deposit products, " he said at the LPS and Banking Gathering with the theme Global Economic Challenges and Indonesian Banking Resilience in 2022, held in Jakarta, Tuesday, April 12.

Furthermore, he also appreciated the bank's compliance with LPS regulations related to the LPS guarantee program.

"Our survey in the last 2 years shows that the Banking has done very well. We are very grateful because the level of compliance continues to improve," he added.

In 2020 the results of the survey showed that the compliance rate reached 87 percent and increased to 89 percent in 2021.

On the same occasion, LPS Chief Executive Lana Soelistianingsih appreciated banks for their contribution and compliance in paying premiums to LPS as implementing the mandate of the LPS Act number 24 of 2004.

"Through this gathering, we hope to be able to strengthen relations between stakeholders in the banking industry which in the future needs to be carried out regularly. We also want to thank you for your participation as financial industry players, both from Commercial Banks and Rural Banks (BPR), which have meet compliance in premium payments," he said.

In addition, he also socialized the implementation of Single Customer View (SCV) to further support the implementation of IDIC duties, in guaranteeing customer deposits and implementing bank resolutions in Indonesia.

"The successful implementation of the said PLPS SCV, which is currently entering a trial period from January 2022 to December 2022, is LPS's endeavor to continue to provide certainty and maintain the trust of depositors in maintaining banking system stability, of course requiring the support of participation from banking industry players," the lid.