Protecting whose interests?<\/p>\n
In 1992's Banking Law No.7, Article 40 states that banks are
\nprohibited from divulging the financial records of their clients
\nand stipulates that all client information should be kept
\nconfidential in compliance with common banking practice.<\/p>\n
Considering the general nature of the content of this article,
\nit is only natural that different interpretations should arise.
\nBanking authorities and bank administrators prefer to take the
\nview that this secrecy should cover all depositors and debtors,
\neven though this could be used as a screen to hide violations.<\/p>\n
On the other side, some prefer to take the view that this
\nsecrecy should cover certain clients only. If the client in
\nquestion is a one with bad debts, secrecy should not be required
\nas such clients could cause the bank to go bankrupt. On such
\noccasions, it is the public who will be duped.<\/p>\n
In view of all this, a balance is called for between the
\nprinciples of bank disclosure and bank secrecy. Such a balance
\nshould be struck carefully. The disclosures should not open
\nopportunities for abuse of information, which could, for instance
\nbe motivated in an attempt to damage a business competitor. On
\nthe other hand, information should not be kept so secret that
\ncollusion is discovered only after a bank is on the brink of
\nbankruptcy.<\/p>\n
-- Republika, Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/protecting-whose-interests-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }