Offshore Bank Products to Be Supervised

VIVAnews - Bank Indonesia (BI) will issue regulations concerning sales of offshore investment products. BI will emphasize protection over banks' customers.

According to BI Deputy Governor Muliaman Hadad, the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) will also take part in the supervision.

This is due to an issue on whether offshore products are part of banks' products or capital market. "Therefore, a cooperation is required," said Hadad on Wednesday, Feb 18.

BI had also announced that there will be new regulations that are similar to guidelines for banks selling offshore products. The products are from foreign banks. Yet, they are offered by domestic banks.

The banks will be obligated to report the released products. This will facilitate customers in checking whether or not the products are legal. The registration of the products can be utilized as database, concerning especially with customer protection

According to BI Governor Boediono, the supervision over banks selling capital market products will be carried out effectively.

Translated by: Ariyantri E. Tarman