TEMPO.CO, Jakarta - The Insurance Deposit Agency (LPS) has shut 53 banks during the past eight years. “There has been 53 banks closed in total, 52 of which were rural banks (BPR), three of them has just been closed this year,” chief of the LPS’ board of commissioners Heru Budiargo said at the Finance Ministry office on Friday, October 18, 2013.
Heru explained three rural banks whose assets reached Rp5 billion each had been closed in the past three months. “We have shut them and paid their insurances,” he said without revealing the banks’ names.
Heru said the closure of the rural banks was mostly attributed to the findings on the banks’ internal misconduct. “There is always a situation where banks with internal frauds could not stand a chance,” he said.
He added the LPS had always conducted reviews on banking operational procedures to avert frauds by hiring consultant agencies. “We have also continued to beef up the intensity of the finance system surveillance network and applied early warning system of the macro-economy and banking industry.”
RIRIN AGUSTIA
