Tugas Sofskil
    Bahasa Inggris

Higher premium for banks with lower ratings :

LPS

A differensial premium system (DPS) imposed by deposit insurance corporations on bank and other financial institutions encourages beter risk management, and expert has claimed.according to the deposit insurance corporation’s (LPS) executive chairman,kartika “Tiko” Wirjoatdmojo, the implementation of a DPS would eventually help ensure the stability of the country’s financial system.

Banks that have a low rating on our soundness scale,due to their high risk of failure and poor management,will be charged higher premiums compared to those that score better ratings,” he said on Friday on the sidelines of the third internasional Workshop on intergrated protection Scheme held by the agency in Nusa Dua, Bali.

“That will motivate them to improve their management systems and their ratings in order to avoid paying high premiums.it will benefit us as well because it will enhance our financial stability,”he added.The LPS hopes to introduces a DPS this year to replace the current system that imposes an annual 0.2 percent premium equally on all banksn on their average thirdparty funds.under the new system,The annual rate will be set at between 0.1 percent,depending on each bank’s rating.

It has prepared five rating levels,which are calculated using three indicators- a bank’s own financial ratios; a bank soundness assessment evaluatedby the financial services authority’s (OKJ);and the bank’s compliance with LPS Regulations.the annual rate will stand at 0.1 percent for banks with a rating of 1,0.15 percent for a 2 rating ,0,2 percent for a 3 rating ,0,25 percent for a 4 rating ,and 0,3 percent for a rating of 5.according to tiko there are about 10 commercial lenders in the country that qualify for a 5 rating.

At the moment,LPS only covers saving or deposits up to a maximum of Rp 2 bilion (US$ 176,113)for each Indonesian depositor.it requires banks to charge a maximum of 7,5 percent interest rate for deposits in rupiahs,1.5 percent for deposits in foreign currencies and 10 percent for deposits in rural bank (BPR).its insurance member comprise 109 commercial banks,11 sharia banks and around 1,700 BPRs.the total of insured deposits in commercial and sharia banks amounted to Rp 2.11 quadrillion as of December 2013,equal to 147,63 million accounts,no data is currently available on the BPR’s Deposits.

Meanwhile ,Yee Ming Lee, the general manager for policy and international division at the perbadanan insurans Deposit Malaysia (PDIM),which is Malaysia’s deposits insurance corporation ,said that Malaysian lenders had been coming to the agency,looking for assistance to improve their risk management system.

The PDIM has set its annual premium rates from 0,05 percent to 0,4 percent,established the deposits protection limit at 250,000 ringgits ($76,233)per depositor ,and divides lender into four rating levels.currently there are 27 commercial banks and 21 islamic banks operating in the country .Lee said that banks might need to invest more in information technology and internal control to assist them with improvement in their risk – management system.

Analysis Tense

1.      other financial institutions encourages beter risk management.

simple present tense (S+V1(s/es)+O)

2.      expert has claimed.

present perfect tense (S+have/Has+v3+O+adv.Of time)

3.      the implementation of a DPS would eventually help ensure the stability of the country’s financial system.

Simple present tense (S+V1+O)

4.      he said on Friday on the sidelines of the third internasional.

Simple pas tense (S+V1+O)

5.      it will benefit us as well

simple future (S+will+V1+O

6.      it will benefitus as well

simple future (S+will+V1+O)

7.      it will enhance our financial stability

simple future (S+will+V1+O)

8.      he added

simple past tense (S+V2+O)

9.      the LPS hopes to introduces a DPS this year

simple present tense (S+V1(s/es)+O)

10.  current system that imposes an annual o.2 percent premium equally on all banks on their

average thirdparty funds

simple present tense (S+V1(s/es)+O)

11.  the annual rate will be set at between 0.1 percent and 0.3 percent

simple future (S+Will+V1+O)

12.  it has prepared five rating levels

present perfect tense (S+Have/has+V3+O)

13.  the annual rate will stand at 0.1 percent for banks

simple future (S+Will+V1+O)

14.  it requires banks to charge a maximum of 7.5 percent interest rate for deposist in rupiah

simple present tense (S+V1(s/es)+O)

15.  its insurance members comprise 109 commercial banks

simple present tense (S+V1+O)

16.  which is malaysia’s deposit insurance

simple present tense (S+V1+O)

17.  Malaysia lenders had been coming to the agency

Past perfect continous tense (S+Had+been+Ving+O)

18.  The PDIM has set its annual premium rates from 0.05 percent to 0.4 percent

Persent perfect tense (S+Have/has+V3+O)

19.  Currently there are 27 commercial banks and 21 islamic banks operating in the country

Simple present continous tense (S+  To be (is/am/are)+Ving+O)

20.  lee said that banks maight need to inverst more in information technology

simple past tense (S+V2+O+Adv. Of time)

sourch: Jakarta Post Newspaper, edition

Saturday March 15,2014