Visit LPS, PPIM FEB UI Students Learn to Manage Financial System Stability
Banuratih ~ Humas PPIM FEB UI
Nino Eka Putra ~ Humas FEB UI
JAKARTA – In the context of learning about the Market and Monetary Environment course, PPIM FEB UI students with the specialty of Morning Regular Finance with Rofikoh Rokhim lecturer conducted a Company Visit to the Deposit Insurance Agency (LPS) at Equity Tower 20-21 Floor, Senayan, South Jakarta, on Monday (2/3/2020).
Students are directed to the meeting room in the form of theater and colorful. In this room students get a speech and explanation of the presentation about ‘The Role of LPS in Maintaining Financial System Stability’.
Research Specialist at LPS, Herman Saheruddin said that the role of banks in the economy and potential risks comes from Credit Risk, Market Risk, Operational Risk, Liquidity Risk, Legal Risk, Reputation Risk, Strategic Risk, and Compliance Risk.
Deposit insurance is a method applied in many countries to protect customer deposits in banks, in full or in part, from losses caused by the inability of banks to meet their obligations, so that banks are finally liquidated. The growth in the number of explicit deposit guarantors has recently been relatively rapid, especially after the 2008 Global Crisis.
“In Indonesia, the Indonesian Deposit Insurance Corporation (LPS), which was established in 2004, was officially operational in September 2005. Legally, members of the LPS are all banks in Indonesia, including foreign banks with branches in Indonesia and joint-venture banks,” Said Herman Saheruddin.
LPS has a role in maintaining financial system stability, where LPS is in the third layer in the Financial Sector Safety Net (JPSK). LPS is present in every phase of the bank’s life cycle starting from banks born and operating normally, banks grow and develop or banks are not healthy even banks fail until the bank dies.
“LPS’s main business processes include calculation, billing and receipt of membership contributions and guarantee premiums. Then, monitoring banking conditions, due diligence, LCT. Furthermore, liquidation and payment of guarantee claims. And finally, P&A, bridge banks, and temporary equity participation,” he concluded. (Des)
