KONTAN.CO.ID - JAKARTA. Indonesia has given the Deposit Insurance Corporation a bigger role in supervising cash-strapped banks under a new regulation issued this week, aimed at beefing up safeguards to limit the risk of the coronavirus pandemic causing a financial crisis. Southeast Asia's largest economy has since late March tweaked crisis management rules to try to prevent the current health and economic crises caused by the pandemic spreading to the financial system. Under the new decree, the Indonesia Deposit Insurance Corporation (LPS) is allowed to assist the Financial Services Authority (OJK) in supervising a bank after OJK puts the bank under an "intensive supervision" status.
Indonesia expands deposit insurer's role in banking supervision
KONTAN.CO.ID - JAKARTA. Indonesia has given the Deposit Insurance Corporation a bigger role in supervising cash-strapped banks under a new regulation issued this week, aimed at beefing up safeguards to limit the risk of the coronavirus pandemic causing a financial crisis. Southeast Asia's largest economy has since late March tweaked crisis management rules to try to prevent the current health and economic crises caused by the pandemic spreading to the financial system. Under the new decree, the Indonesia Deposit Insurance Corporation (LPS) is allowed to assist the Financial Services Authority (OJK) in supervising a bank after OJK puts the bank under an "intensive supervision" status.