The primary focus of banking regulation and supervision is to ensure the optimum functioning of Indonesia’s banking system as:
With the aim of creating a sound banking system (both overall and in terms of individual banks) capable of safeguarding the public interest, achieving sound growth, and contributing in a useful capacity to the national economy.
To achieve these objectives, the approaches used are as follows:
:: Scope of Bank Regulation and Supervision
To perform its bank supervision tasks, BI has introduced a system for supervision applying the twin approaches of compliance-based supervision and risk-based supervision (RBS). The use of the RBS approach does not mean doing away with compliance-based supervision, but represents an effort to improve the supervisory system and thus strengthen the effectiveness and efficiency of bank supervision. Over time, the supervisory approach applied by BI will be progressively changed over to fully risk-based supervision.
Kind of Bank Risks :
SIM-SPBI is an integrated information system that supports the functions of BI banking supervision, examination and control. In general the management information system for the banking sector is essentially a means of automating the functions of Bank Supervision and Examination, including the collection, calculation and presentation of data / information, it is also to create an integrated information center so that information is always available to support the roles of supervision, examination, research, control and development of the banking system. With available data on bank performance that is comprehensive, prompt and accurate, Bank Indonesia is confident to have the support needed for decision-making, and that the data can be used by other concerned parties in line with existing procedures.
The goals of application of the SIM-SPBI are:
SIM-SPBI is expected to improve the integrity and competence of bank supervisors and examiners and to upgrade the effectiveness of bank supervision, which is in turn it could create a sound banking system.
:: Debitor Information System (SID)
SID is an information system designed to provide information regarding debtors, both individuals or businesses. The information is processed based on reporting institution (members) of available funds received by Bank Indonesia from Reporters. SID was developed to assist with the following goals:
:: Rural Bank Supervision Management Information System (SIMWAS BPR)
In an effort to improve the effectiveness of implementation of the functions of supervision, examination and research of rural bank, Bank Indonesia designed the Rural Bank Supervision Management Information System (SIMWAS BPR) which has been implemented in July 2005. The SIMWAS BPR information system was created to improve the effectiveness and efficiency of the BPR supervision system. Using the SIMWAS BPR, BPR supervisors can optimize the analysis of the performance of a BPR, expedite access to information regarding the financial condition of BPR (including BPR Soundness rating), and increase the security and integrity of banking system data and information.