Miranda to push banks to adopt int'l standards
Miranda to push banks to adopt int'l standards
Dadan Wijaksana, Jakarta
Miranda Swaray Goeltom was sworn in on Tuesday by the Supreme
Court as the central bank's new senior deputy governor, saying
that pushing domestic banks to apply international best practices
would be among her top priorities.
Miranda, who replaces Anwar Nasution, was quick to add that
Bank Indonesia would do its utmost to seek relief or reprieve
from certain international rulings such as those spelled out in
the Basel Accord II.
"It is important to reduce the impact (of these rulings). In
essence, this is to protect our national interests and economy,"
Miranda said following the swearing-in ceremony, which was
attended by central bank governor Burhanuddin Abdullah and
Minister of Finance Boediono, among others.
"There are many international rulings that we can adopt, but
there are specific situations special to Indonesia that allow us
to ask for relief."
She did not elaborate on the type of relief, but there have
been some complaints from bankers here over certain rulings that
the central bank has introduced or plans to introduce in
accordance with the Basel Accord II.
The rulings, which aim to boost banks' financial soundness,
regulate banks' risk management, internal controls, prudent
credit disbursement and capital management.
The central bank, for instance, has tightened a ruling on
nonperforming loans (NPLs), setting the ratio of NPLs to a
maximum of 5 percent of outstanding liabilities.
The central bank also has floated the idea of increasing the
minimum required capital adequacy ratio (CAR) for banks to 12
percent from the current 8 percent.
Such rulings have elicited protests from some bankers, who say
the country's banking sector, still feeling the pinch from the
economic crisis, is not yet ready to face such tough rulings.
Miranda's remarks on Tuesday, if aimed at addressing these
complaints, should be warmly welcomed by the bankers.
Miranda was appointed by the House of Representatives to
replace Anwar, whose five-year term ended on July 27. She beat
out two other candidates for the position: Budi Rochadi, the head
of the central bank's representative office in Tokyo, and Hartadi
A. Sarwono, a deputy governor at the central bank.
Miranda served as a deputy governor at Bank Indonesia from
1998 to May 2003.
When asked whether there was any rivalry between her and
Burhanuddin, she replied: "There is no such thing. It is clear
that we are on the same team and Pak Burhanuddin is the captain."
Both Miranda and Burhanuddin were among the candidates for the
central bank's top post earlier in the year.