Bank Danamon to face test before merger: BI<\/p>\n
JAKARTA (JP): Bank Indonesia senior deputy governor Anwar
\nNasution said on Thursday plans by the Indonesian Bank
\nRestructuring Agency (IBRA) to merge Bank Danamon with eight
\nother nationalized banks could not yet be implemented because it
\nhad yet to fulfill the central bank requirements on merger and
\nacquisition.<\/p>\n
Anwar said Bank Indonesia had yet to audit the new personnel
\nof the board of commissioners and board of directors of Bank
\nDanamon.<\/p>\n
"They have to pass our fit and proper test as one of the
\nrequirements," he said at a media conference.<\/p>\n
IBRA plans to merge publicly listed Bank Danamon with Bank
\nPDFCI, Bank Duta, Bank Nusa Nasional, Bank Pos Nusantara, Bank
\nRama, Bank Tamara, Bank Tiara Asia and Jaya Bank Internasional
\nlater this year.<\/p>\n
The failure to meet merger requirements is likely to delay the
\nmerger plan, which is a key bank restructuring program from IBRA.<\/p>\n
After the nationalization of Bank Danamon, its senior
\nexecutives were replaced by top people from Bank PDFCI, which was
\nnationalized by IBRA after it almost collapsed in the wake of the
\neconomic crisis last year.<\/p>\n
Anwar said Bank Indonesia had asked PDFCI and IBRA several
\ntimes to provide the necessary documents for the fit and proper
\ntest since July, but IBRA only gave the nod to provide the
\ndocuments on October 27.<\/p>\n
Anwar dismissed earlier media reports that the central bank
\nwas trying to block the merger plan of Bank Danamon.<\/p>\n
Anwar also said IBRA could not proceed with the merger plans
\nif the newly merged banks could not meet the minimum four percent
\ncapital adequacy ratio (CAR) requirement.<\/p>\n
Anwar said if Bank Danamon merged with PDCI, their resulting
\nCAR level would be 17 percent, which would meet the merger
\nrequirement.<\/p>\n
But if the two banks were to be merged with the other seven
\nbanks, the resulting CAR level would be negative, he said.<\/p>\n
He pointed out that based on the August due diligence process,
\nthe resulting CAR level of the nine merged banks was minus 59.4
\npercent.<\/p>\n
Meanwhile, Bank Indonesia licensing director Sukarwan said a
\nfit and proper test could take between one and two weeks if the
\nnecessary documents were complete and available.<\/p>\n
He expected they would be able to start the fit and proper
\ntest of Bank Danamon personnel as soon as possible. (rei)<\/p>",
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