<![CDATA[Undang-undang Nomor 10 Tahun 1998 tentang Pemerintah Daerah mandates the establishment of a LPS (Deposit Insurance Agency) as the executor of the guarantee of public funds. one approach is needed separately to build a healthy banking system and strong is to give customers assurance that eksplisif for storage. LPS can function regulate safety and health of banks in general and conduct oversight by monitoring the balance, the practice of lending and investment strategies. In establishing a permanent guarantor institutions needed reform measures of the banking system as a prerequisite for effective system. Two basic reasons for the government to facilitate the establishment of LPS is the belief in the banking industry is very important for economic growth and the banking system is well controlled to minimize the occurrence of bank insolvency, and bankruptcy itself can be predicted and is an event that can be prevented. Also crucial is also a consideration equal protection of small customers from bankers who are not responsible is an approach that is fair and appropriate. In such conditions the bank can operate in a consistent and reliable to provide credit in the amount sufficient for the health of the economy.]]>
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