LPS: Banking Sector Healthy, Public Need Not Worry About Saving

The Indonesia Deposit Insurance Corporation (LPS) has assured that the resilience of the financial sector is maintained, with all banks remaining sufficiently strong amid global turmoil. Chairman of the LPS Board of Commissioners, Anggito Abimanyu, stated that the LPS continues to monitor the development of banks, especially Rural Banks (BPR), some of which have poor governance. The banking industry is also encouraged to uphold prudential principles in business management, including in credit distribution to support the government’s priority programmes. On the other hand, LPS sees challenges in the banking sector related to pressure on purchasing power in several sectors, but LPS confirms the health of the banking system so that the public need not worry about saving in banks participating in the LPS guarantee programme, while still maintaining personal risk management.