Indon finance ministry says on website bank can't fulfil requirements
DBS Group's Indonesian unit has lost its licence to trade government debt securities on behalf of the central bank and the finance ministry here. The announcement was posted on the ministry's website yesterday.
In a brief, five-sentence statement, the ministry said that the government had withdrawn PT Bank DBS Indonesia's licence as a primary dealer.
'Since PT Bank DBS Indonesia cannot fulfil its requirements as a primary dealer and has been given reminder letters three times in the past one year, its appointment as a primary dealer has been revoked,' the statement said.
It did not say what the requirements were or how or why Bank DBS Indonesia failed to fulfil them.
Bank DBS Indonesia is a unit of DBS Group, Singapore's biggest lender by assets.
According to its website, Bank DBS Indonesia has a head office in Jakarta, branches in Jakarta, Bandung, Makassar, Medan, Pekanbaru, Semarang and Surabaya, and five sub-branches in Jakarta.
These branches provide a full range of banking services including corporate and consumer lending, trade finance, time deposits, current accounts, savings accounts, money market and foreign exchange services.
Contacted by BT yesterday, DBS was unable to say how and why its licence was revoked, or what effect this would have on its Indonesian operations.
A DBS spokesman said: 'We are aware of the matter and are in discussions with the relevant authorities.'
DBS Indonesia was one of 15 banks and four securities houses named primary dealers to trade treasury bills on behalf of the central bank and the finance ministry.
Besides DBS, other foreign banks among the primary dealers include Citibank, Deutsche Bank, Standard Chartered, HSBC and JP Morgan Chase.
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