As of October 2017, LPS Has Liquidated 83 Banks


WARTA KOTA, MATRAMAN – Until October 2017, the Deposit Insurance Corporation (LPS) has liquidated 83 banks. Of these, the majority are Rural Banks (BPR), ie as many as 82 institutions.
"The majority is dominated by BPR, with only one commercial bank," said Suharno Eliandy, Senior Executive Vice President of LPS, Suharno Eliandy, in Jember, East Java, Monday (6/11/2017).
According to him, there are several reasons why banks have failed business. Among other things, less mature planning, and management are not maximized.
"They are failing business because planning is not mature," Suharno said.
In addition, he said further, there is another motivation behind the establishment of a banking business. "This is related to the morale of the managers, eventually the business becomes a failure," he said.
Commission XI member of the House of Representatives, M Purnama Sidi said, so far it continues to encourage all relevant institutions to maximize their respective functions. "Suppose that like OJK, we are encouraged to maximize its supervisory duties," he said.
The average deposit rate based on Indonesian banking statistics is in the range of 6.5 percent.
Never again, he continued, in the future, the case of banks that went bankrupt but the government must bail.
"Enough is the case of Century, it's the last, no longer there are banks that go bankrupt then the Government that nalangi," he said.
Previously LPS also liquidated 71 banks during 2005 to 2016.

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