Abstract
This study analyzes the regulatory and supervisory authority of banks conducted by the Financial Services Authority set out in Law no. 21 of 2011, which was previously undertaken by Bank Indonesia, to apply the principles of prudence and good faith principles to banks to prevent the risk of banking crime. Banking supervision and regulation after the issuance of the Financial Services Authority Law, Bank Indonesia, as the central bank only acts as a monetary policy regulator to maintain monetary stability. The problem in this research is about the concept of law of regulation and supervision of the banking sector by the Financial Services Authority and how the legal relationship with Bank Indonesia. The type of research used is juridical normative, then the data used secondary data and primary data, the approach in this study using a conceptual approach, and comparative approach. Bank Indonesia's regulatory and supervisory duties transferred to Financial Services Authority are only related to micro-prudential, and the banking arrangements by Bank Indonesia are still conducted by Bank Indonesia only macro-prudential, while the regulation of banking by Financial Services Authority is not fully independent.
Highlights
The presence of a bank is very closely related to developments in the field of trade
This study analyzes the regulatory and supervisory authority of banks conducted by the Financial Services Authority set out in Law no. 21 of 2011, which was previously undertaken by Bank Indonesia, to apply the principles of prudence and good faith principles to banks to prevent the risk of banking crime
The establishment of the Financial Services Authority will have an impact on the implementation of duties and its authority in the banking sector, which must be carried out optimally
Summary
The presence of a bank is very closely related to developments in the field of trade. Provisions of Article 34 of Act Number 3 of 2004 concerning Amendments to the Law of the Republic of Indonesia Number 23 of 1999 concerning Bank Indonesia this regulation mandates the establishment of financial service sector oversight institutions that include banking, insurance, pension funds, securities, venture capital, and finance companies as well as agencies that administer public funds. The problem discussed in this study is the legal concept of the authority to regulate and supervise financial institutions in the activities of financial services in the banking sector by the Financial Services Authority and Bank Indonesia. This research used primary legal material and secondary legal material because is relevance with with the nature of normative legal research
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