JAKARTA. The Deposit Insurance Corporation (LPS) has called on domestic lenders to exercise prudence in their banking practices to avoid the “bust” risk that may arise in the near future. LPS executive chairman Kartika “Tiko” Wirjoatmodjo said that the banking industry might experience a bust in 2015 triggered by the US Federal Reserves’ plan to increase its interest rate. “The rate increase is actually expected, but we are hoping that banks will take precautionary measures, so that possible capital outflow will not have severe impacts,” Tiko said on the sidelines of a LPS seminar entitled “Befriending with ‘Boom-Bust’ Cycle”.
LPS asks banks to avoid rate competition
JAKARTA. The Deposit Insurance Corporation (LPS) has called on domestic lenders to exercise prudence in their banking practices to avoid the “bust” risk that may arise in the near future. LPS executive chairman Kartika “Tiko” Wirjoatmodjo said that the banking industry might experience a bust in 2015 triggered by the US Federal Reserves’ plan to increase its interest rate. “The rate increase is actually expected, but we are hoping that banks will take precautionary measures, so that possible capital outflow will not have severe impacts,” Tiko said on the sidelines of a LPS seminar entitled “Befriending with ‘Boom-Bust’ Cycle”.