High Interest Rates: The Main Reason for Unpaid Customer Claims
- A Small Font
- A Medium Font
- A Bigger Font
The Indonesian Deposit Insurance Corporation (LPS) has handled claims totaling Rp 2.06 trillion since its inception in 2005 until October 31, 2021. Of this total, Rp 370.28 billion were ineligible for payment.
There are three requirements for LPS to deem depositor refunds eligible for payment. First, the depositor must be registered in the bank's system. Second, the deposit interest rate must not exceed the LPS interest rate. Third, the depositor must not have caused the bank's failure or experienced non-performing loans.
Interest exceeding the LPS interest rate is the main reason for ineligible claims. As much as 76.9%, or Rp 284.97 billion, of ineligible claims resulted from interest exceeding the LPS interest rate.
For information, LPS sets the guaranteed interest rate at 3.5% for commercial banks and 6% for rural banks (BPR). This interest rate is valid until January 28, 2022.
Meanwhile, ineligible funds due to non-performing loans amounted to Rp 50.58 billion (13.7%), and those not registered in the bank's system amounted to Rp 34.73 billion (9.4%).
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
Related Data
Latest Data Stories
Trending Topics
Popular Data