VIVAnews - The Indonesian central bank will rebuild the architecture of Indonesian banking. One of the revisions is concerned with restricted foreign investment in national banking.
"We are reviewing the issue on foreign investment," said Deputy Senior Governor of Bank Indonesia (BI) Darmin Nasution on Monday, August 10.
Darmin comprehended that the queries on foreign investment in banking are in line with credit disbursement. However, he stressed that foreign investment will not automatically reduce credit disbursement. "It will depend on the architecture and regulation," he said.
BI will have better analysis as it readies the new banking architecture. BI will study the pros and cons of the future design. BI will also consult with the House of Representatives (DPR) prior to the approval of the regulation.
DPR Chairperson Agung Laksono said the review over the banking policy was carefully set out and is not aiming at causing losses for the market.
A number of national banks like Danamon, Bank Internasional Indonesia, Bank Permata, CIMB Niaga, Bank UOB Buana, Bank NISP, Bank Ekonomi, Bank Panin are controlled by foreign institutions.
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Translated by: Bonardo Maulana Wahono
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