Wednesday 14 December 2011

BANKS ASKED TO ANNOUCE MAXIMUM INTEREAST RATE


        Last week the Head Executive of Deposit Insurance Division Djaelani urged all insurance banks (LPS) to announce maximum and reasonable interest rate. As know LPS recently stipulated to lower maximum interest rate for Rupiah deposit from 7.25% to 7.00% (at retail l banks) and from 10.25% to 10.00% (at Bank Perkreditan Rakyat/BPR) and for forex deposit from 2.25% to 2.00% per year. The stipulation was effective as per October 12, 2011 until January 14, 2012. Firdaus added that LPS did not insure deposit whose interest rate exceeded reasonable level.

            According to Business News observation, most of the retail banks in Jakarta were reluctant to announce their natural interest rate applicable today; they only paste a notice at the entry door stating that the bank was a member of IPS deposit insurance bank.   

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