BI introduces online credit information system
BI introduces online credit information system
JAKARTA (JP): The central bank, Bank Indonesia, has introduced an online credit information system that will go into effect April 20 for all private banks operating in the greater Jakarta area, an informed source said.
The system, which was jointly set up by Bank Indonesia and PT Lintas Artha, has been used by state-owned banks in Jakarta and its neighboring towns since last January.
The operation of the system, according to the source, is to prevent private and state banks from giving double loans to the same borrowers.
"Bank Indonesia will provide data on both individuals and groups borrowing money from all banks, including borrowers who already have non-performing loans at other banks," he said.
Bank Indonesia, according the source, will also utilize the system to monitor the growth of loans at banks, allowing the central bank to know which banks have surpassed their credit ceilings.
He said that for data collecting, Bank Indonesia has instructed both private and state banks to submit comprehensive data about their borrowers, including names, addresses and credit amounts to the central bank every month.
"Any banks violating the deadline of reporting will be fined," he said, adding that the deadline is set for the 20th of the following month.
He said the central bank has also revised the category of loans to be reported. The new formulation stipulates that banks must submit individual reports on borrowers with total loans of Rp 5 million (US$2,949) and over, compared to Rp 30 million under the old formulation.
"We have lowered the ceiling because of the increase in the number of borrowers with loans between Rp 5 million and Rp 30 million due to the introduction of collateral-free loans," he said.
Data from Bank Indonesia show that as of the end of August 1995, total loans provided by all banks in the country reached Rp 216 trillion in 8.3 million accounts.
Eight percent (Rp 16.6 trillion) of the total loans were categorized as loans below Rp 5 million with 6.7 million accounts.
Loans amounting to between Rp 5 million and Rp 30 million accounted for 5 percent or Rp 10.1 trillion of the total loans with 952,541 accounts.
Loans totaling Rp 30 million and over reached Rp 191 trillion, or 87 percent of the total loans with 408,507 accounts.
The source said that in the future the system will also provide information on the sources of funds for loans including offshore loans, credit cards, bonds, commercial papers and standby letters of credits.
According the source, Bank Indonesia has yet to give real time information through its online information system. (08)