BI Says Bank Crimes Hard to Handle

VIVAnews - Bank Indonesia (BI) stated that it has modified its monitoring method to improve bank controlling system. However, it is difficult to put the brakes on the criminal methods that are rapidly altering.

According to BI Deputy Governor Siti Fadjriah, BI is now developing risk-based approach. With the approach, both domestic and global changes will affect banks' risk.

"It includes detecting quite unexpected characters of owners and bank management," she said on Tuesday, Feb 10.

In the past, she said, BI applied compliance approach. The method had only enabled the central bank to recognize past issues. As a result, it will be left behind if a manipulation is committed.

BI implements on-site and off-site supervision in monitoring banks. Inside supervision is carried out every year. BI can also penetrate into a bank if it detects risk-alleged matters. "The off-site supervision will be applied if we notice an odd activity. Every time we send out a supervisor, it can be done. We do not have to place a supervisor in a bank because we can be there at any time," she said.

To anticipate bank crimes, BI will duplicate supervision especially concerning supervisors' competency. The problem has been on the supervisors' unfamiliarity with the business. Supervisors' knowledge on the business should be improved.

The House of Representatives (DPR) had earlier commented on BI's monitoring system. Member of DPR Commission XI, Melchias Markus Mekeng, for instance, said BI has applied weak monitoring system.

Translated by: Bonardo Maulana Wahono