XING Indonesia

XING Indonesia

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  • Felix Widmer
    Felix Widmer    Premium Member   Group moderator
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    0.1% of Bank Accounts Hold More Than Half of All Deposits in Indonesia
    A government banking agency has revealed data showing that the rich still dominate Indonesia’s total bank deposits.

    Few bank accounts contained more than Rp 2 billion ($226,000) but the wealth in these accounts comprised more than half of all public funds in the country’s banks, the Deposit Insurance Agency (LPS) said.

    LPS head Firdaus Djaelani said that as of last month, there were only 136,890 accounts with more than Rp 2 billion. That represented little more than 0.1 percent of the estimated 101.5 million accounts in the country.

    Those richest accounts contained 51 percent of all third party funds — Rp 2,830 trillion — in the country as of December.

    LPS registered 120 commercial banks and 1,837 rural banks as members. The amount of public money in rural banks was small, at only Rp 36.8 trillion.

    The government obliges all lenders operating in Indonesia to become LPS members so that customers’ deposits are protected in case of a bank collapse. However, the guarantee only applies to accounts with balances of up to Rp 2 billion.

    The guarantee is also limited to rupiah deposits paying up to 6.5 percent interest and dollar deposits paying up to 1.5 percent in interest.

    Since it was formed in 2005, LPS has assisted in the recovery of up to Rp 670 billion in deposits from 46 liquidated banks.

    LPS was established as part of a massive banking restructuring that followed the Asian financial crisis in 1997-98.

    The intention was to make depositors more comfortable putting their money in banks after their confidence was shaken by the collapse, which led to a substantial number of people withdrawing their money.

    Source: Jakarta Globe. http://bit.ly/z1utum
    • 25 Jan 2012, 4:16 pm