Bank posts positive interest margin<\/p>\n
JAKARTA (JP): Publicly-listed Bank Universal reported on
\nWednesday it had posted a positive net interest margin since
\nDecember, compared to negative margin of 50 percent in the last
\nquarter of 1998 and minus 1.02 percent as of September 1999.<\/p>\n
\"This improvement resulted from the better management of the
\ncosts of our fund and the resumption of lending,\" the bank's
\npresident, Stephen Z. Satyahadi, said.<\/p>\n
Stephen said Bank Universal had resumed lendings, though still
\nin small sums and after 'extra' careful assessment, mostly to the
\nretail sector and contractors working for resource-based
\nbusinesses.<\/p>\n
It would, however, take some time before lendings to the
\nmanufacturing industry could resume, he added.<\/p>\n
\"The problem is that most manufacturing companies are still in
\nthe process of restructuring their debts under the supervision of
\nthe Indonesian Bank Restructuring Agency (IBRA),\" Stephen said.<\/p>\n
He said customer deposits at Bank Universal increased to Rp
\n8.77 trillion (US$1.16 billion) as of last September from Rp 8.09
\ntrillion as of June.<\/p>\n
Bank Universal was the first publicly-listed bank to complete
\nrecapitalization last June, having achieved the government-set
\nminimum capital adequacy ratio of 4 percent.<\/p>\n
The bank is now controlled by the government with a total
\nshareholding of 78.91 percent. PT Astra International owns 11.52
\npercent and the investing public the remaining 9.57 percent.<\/p>\n
\"But our capital standard has increased steadily to reach 6.70
\npercent as of last September,\" Stephen added.<\/p>\n
He said the recapitalization had also begun to restore foreign
\nbanks' confidence in Indonesia's banking industry.<\/p>\n
\"Bank Universal, for example, has thus far been approached by
\nfour foreign banks in the process of reopening correspondent
\nbanking.<\/p>\n
\"This is really a positive sign not only for the banking
\nindustry but also for the business sector in general as
\ncorrespondent banking would facilitate trade financing,\" Stephen
\nsaid.<\/p>\n
Almost all foreign banks have stopped accepting letters of
\ncredit opened at Indonesian banks in the wake of the banking
\ncrisis in early 1998.<\/p>\n
He hoped IBRA would speed up the restructuring of more than Rp
\n200 trillion in bad debts currently under its management so that
\nthe debtor companies could soon resume borrowings and
\nrecapitalized banks could significantly expand lending
\noperations.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-posts-positive-interest-margin-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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