Going forward, Bank Indonesia will continue to escort banking industry in the context of financial stability system. For this purpose, Bank Indonesia will conduct surveillance both on banks and non banks, examine banks in the context of macro-prudential, and will coordinate closely in the context of crisis prevention and resolution.
The recent recommendations by the FSB are in my view not sufficiently far-reaching regarding the re-hypothecation and re-use of securities in repos.37 Regarding the use of margins and haircuts, the FSB recommendations to introduce minimum initial levels are also quite narrow: they exclude sovereign paper and transactions between regulated institutions and apply only to non-centrally cleared operations.