S'pore banks unfazed by ban

S'pore banks unfazed by ban

Singapore (DPA): Two Singapore banks said Saturday that a six- month ban on their Indonesian units would have little effect because they were not involved in mutual-fund activities in the country.

The Capital Markets Supervisory Agency (Bapepam), the Indonesian regulator, announced Thursday that it was slapping suspensions on the OCBC Bank and United Overseas Bank (UOB) units in addition to seven other brokerages for failing to follow regulations stipulating the directors hold certain qualifications.

OCBC Sikap Securities and PT UOB Kay Hian Securities hold licenses to sell mutual funds in Indonesia, but these permits are not in use, the banks said.

The regulations stipulate at least one director and one employee possess investment management licenses to conduct such business.

The ban does not affect brokerage and stock underwriting.