Bank Jago Calls Closing SVB Encourages Banking To Diversify Distribution Of Funds

Illustration (Photo: Doc. Antara)

JAKARTA - President Director of PT Bank Jago Tbk Kharim Siregar said the closing of Silicon Valley Bank (SVB) by the California Banking Regulator, United States, was a lesson for banks to diversify the distribution of funds.

"If you look at the SVB case, one of them is placing most of their funds to bonds or state debt securities," said Kharim as quoted by Antara, Friday, March 17.

Bank Jago also tried to diversify their funds through collaboration with 38 strategic partners.

"All funds rather than customers who enter Bank Jago are divided, one of which is that we distribute them to become loans to 38 partners so that the risk is well distributed," he explained.

He believes that the diversification carried out by Bank Jago is good enough so it will not be closed like SVB.

According to him, the closure of the SVB will not have an impact on Bank Jago, but for that his party needs to continue to maintain public trust in the national banking system, including Bank Jago.

Bank Jago Deputy President Director Arief Harris added, although technology-based, Bank Jago will maintain a positive performance going forward.

"There are fundamental things that we must maintain, including risk management, balance sheet management, and our compliance with regulations. Because we like it or not, banks are industries based on trust," he said.

He views technology-based companies, including technology-based banks such as Bank Jago, no longer able to only disburse money to market their services, but must also start posting profits.

The reason is, funders such as venture capital companies have also begun to take into account the sustainability of start-ups when they are about to carry out funding.

"We have to be profitable, it's okay, it's small, the important thing is that our capital doesn't decrease," he said.