Banking - LPS maintains commercial bank deposit guarantee

Banking - LPS maintains commercial bank deposit guarantee The Deposit Insurance Corporation (LPS) has decided to maintain the interest rate for guaranteeing commercial bank deposits at 4.25%, which is valid from June 1 to September 30, 2024. Meanwhile, the interest rate for guaranteeing deposits at the People's Economic Bank (BPR) remained at 6.75% and the interest rate for guaranteeing foreign currency deposits at 2.25%. As of April, LPS recorded that the number of Commercial Bank accounts guaranteed by LPS was 99.94%, or around 573.91 mn accounts. Meanwhile, the number of BPR accounts guaranteed by LPS is 99.98%, or around 18.32 mn accounts. (Source: Kontan) Comment : We like that LPS maintains its deposit guarantee. We also believe the total accounts guarantee will be increased following our expectation of better TPF growth as a result of continuing uncertainty. As such, the industry's liquidity is likely to continue to solid. Maintain our OW stance for the sector with BBRI and BBNI as our top picks.