LPS does not Change Guarantee Interest Rate

Liputan6.com, Jakarta The Deposit Insurance Corporation (LPS) stated that the guarantee interest rate for deposits in rupiah and foreign currency in commercial banks and rural banks (BPR) has not changed. The interest rate is valid for the period from September 15, 2016 to January 15, 2017.

LPS Secretary Samsu Adi Nugroho said the interest rate for commercial banks namely the rupiah at 6.25 percent and foreign exchange 0.75 percent. Meanwhile, the Rupiah interest rate in BPR is 8.75 percent.

"The guaranteed interest rate is considered to be in line with the direction of the latest developments in bank deposit rates, while domestic macroeconomic conditions are seen as stable with adequate banking liquidity," he said in Jakarta on Tuesday (27/12/2016).

He said that what needs to be observed at this time is the external factor in which the condition of foreign policy and exchange rate fluctuations have the potential to increase the volatility of global financial markets. It could have an impact on the domestic economy and stability.

He said that if the promised deposit interest rate between the bank and the customer exceeds the deposit interest rate, then the saving of the referred customer is not guaranteed.

"In this regard, banks are required to notify depositors of the prevailing deposit interest rate by placing such information in a place that is easily known to depositors," he said.

He said it was done to protect customers. He appealed to the banks to pay attention to the provision of deposit interest rate in order to raise funds.

"In conducting its business, the bank should pay attention to the liquidity condition in the future so that the bank is expected to comply with Bank Indonesia liquidity management regulation, as well as the regulation and supervision of banking by the Financial Services Authority," he asserted.