Asia: Asia bans on BTN amid fraud investigation

State-owned lender Bank Tabungan Negara (BTN) has been banned from opening any type of new bank accounts at its cash offices and also from finding third-party funds, be it through marketing efforts or opening new branches. Both bans have been handed down by the Financial Services Authority in Indonesia.

These bans come amid an investigation into a time deposit slip forgery case which allegedly involved BTN’s employees. Four institutions and an individual are involved in this fraud case. Police have already arrested Bambang Suparno, the Head of BTN Cikeas Cash Office in West Java, due to his alleged involvement in this case.

BTN is the market leader in mortgages, holding 33% of all mortgage relationships and capturing 30% of all main mortgage relationships.

According to data from RFi Group, BTN is the market leader in mortgages, holding 33% of all mortgage relationships and capturing 30% of all main mortgage relationships.

The measures will last until BTN’s internal control improves and its operation risks decrease. BTN Corporate Secretary, Eko Waluyo, has ensured that his firm will work in accordance to the prevailing regulations.


Source: RFi Group – Indonesia Retail Banking Council (H2 2016)

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