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Financial regulator upbeat on Indonesian banking sector
Publication Date : 03-05-2014
The Financial Services Authority (OJK) said the Indonesian banking industry was showing much more potential in comparison to its Southeast Asian neighbours.
Based on OJK data, as of Dec. 31, 2013, Indonesian banks had a net interest margin of 4.89 per cent, as reported by tribunnews.com.
In comparison, the net interest margin in the Philippines stood at 3.3 per cent, 2.6 per cent in Thailand, 2.3 per cent in Malaysia and 1.3 per cent in Singapore.
"This shows that we have far better prospects than our neighbouring countries," Slamet Edy Poernomo, the OJK's banking supervision director, said in Jakarta on Friday.
Slamet emphasised that Indonesians should anticipate the expected increase in the number of foreign banks in the country following the launch of the Asean Economic Community (AEC) in 2015.
"The OJK has prepared a 2014 Indonesian Banking Masterplan in preparation for the AEC in order to enhance our banks' competitiveness," he said.
Other efforts include educating the public about the importance of consumer protection.