Supervision and Development of Microfinance Institutions are based
b. Assign employees appointed for training organized by the FSA
c. Prepare means of operational Support and Supervision.
Besides supervision is assigned to the local government districtcity includes several things, namely:
a. Acceptance of the financial statements and impute data into the application system
b. Conduct analysis of MFI’s financial statements c. Receive and analyze another report
d. Do the follow up on other reports e. Prepare a work plan examinations, investigations, and follow up on the results
of MFIs f. Impose of administrative sanctions to MFIs in addition to revoke the business
license and fined g. Undertake measures appropriate response to MFIs experiencing liquidity
problems and solvency were harmful to business continuity
b. Examination Authority MFIs by financial services 1 In the framework of the implementation of the function of supervision, the
FSA conduct an examination of the MFI 2 The examination of the MFI as referred to in paragraph 1 is delegated to the
districtcity in region where MFI operates or other parties appointed by the FSA. 3 If necessary, the FSA can make a direct examination of the MFI either
individually or jointly with local government districtcity or other parties appointed
4 The examination aims to: a. Obtain assurance regarding the actual condition of MFIs.
b. Examine the suitability of conditions MFIs with legislation and practices
regarding business healthy MFIs; and c. Ensure that MFIs have made efforts to fulfill its obligation to its customers.
Article 9 describes the implementation of the examination will be undertaken of the MFI is based on:
1 The examination of the MFI is done by: a. Upon analysis of the periodic reports of MFIs should be assumed that the
implementation of MFIs business activities intended to deviate from the legislation in the field of MFIs that could pose risks which harmful to MFI
business continuity andor depositary interests in lending or financing activities and management savings
b. Complaints or reports received from the public there is a presumption that the operation of business activities of MFIs deviate from the provisions of the
legislation in force divides MFIs that may cause harm to the public. 2 The examination as referred to in paragraph 1 shall include an examination
of the substance of the periodic reports and compliance with laws and regulations in the field of MFIs.
3 The examination referred to in Article 8 paragraph 3 shall be done in the case of suspected conditions:
a. The occurrence of both MFI financial abuse by the directors, commissioners and employees of the MFIs.
b. The liquidity and solvency difficulties that lead to dangerous conditions for the sustainability of the MFIs business.
c. There is a deviation from Islamic principles for MFIs in conducting business based on sharia principles.
d. Delinquent loans or financing the purchasing large enough to affect the financial condition of the MFIs
e. The existence of irregularities in the form of a loan or financing fictitious f. The occurrence of errors in recording andor accounting calculations that result
in financial losses for the MFI; g. There are conditions beyond the provisions under consideration of the FSA
need to be inspected directly by the FSA of the MFI.
MFIs that do not comply with the provisions in article 13 paragraph 1 and 2 the FSAs regulations, are subject to administrative sanctions in the form of a
written warning, written warning sanction is given 3 times. If the validity period has not ended but the warning sanction has been fulfilled or obeyed by MFIs, the FSA or
the districtmunicipality or other parties are appointed by the FSA to revoke the sanction of a written warning. And if sanctions not heed the warnings by the FSA
MFI shall ask shareholders or meeting of cooperative members.
B. The Effort of the Financial Service Authority FSA to Protect the Customer of Baitul Maal wat Tamwil BMT
From the theory of Philip M. Hadjo on legal protection, it is found that legal protection Islamic Microfinance consumers is an important thing to make sure legal
certainty, surety, and give legal protection to customers who have difficulty in withdrawing funds. To provide legal certainty and legal protection to customers of
legal complaints process through an easy process and the existence of legal guarantees for customers as well as collateral against funds is unbelievably important
savings for the community.
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