Jakarta making laws to guard against bank collapses

Jakarta

INDONESIA is preparing a major overhaul of financial safety regulations to guard against the potential for bank collapses.

Regulators are working on a list of systemically important banks, likely to include the country's top 15 by assets, and parliament may pass a law this year setting out rules for bailouts, said Fauzi Ichsan, who heads the Indonesia Deposit Insurance Corp. The agency guarantees bank deposits and would take over any lenders in the event of a failure.