{
    "success": true,
    "data": {
        "id": 1225688,
        "msgid": "bankers-oppose-higher-car-requirement-1447893297",
        "date": "2002-09-12 00:00:00",
        "title": "Bankers oppose higher CAR requirement",
        "author": null,
        "source": "JP",
        "tags": null,
        "topic": null,
        "summary": "Bankers oppose higher CAR requirement The Jakarta Post, Jakarta Bankers urged Bank Indonesia not to apply the minimum 12 percent capital adequacy ratio (CAR) requirement yet as it would impede banks from resuming their lending activities. Chairwoman of the Indonesian Private Banks Association (Perbanas) Gunarni Soeworo said on Wednesday that local banks needed another three years to four years to be able to meet the internationally accepted CAR standard.",
        "content": "<p>Bankers oppose higher CAR requirement<\/p>\n<p>The Jakarta Post, Jakarta<\/p>\n<p>Bankers urged Bank Indonesia not to apply the minimum 12 percent<br>\ncapital adequacy ratio (CAR) requirement yet as it would impede<br>\nbanks from resuming their lending activities.<\/p>\n<p>Chairwoman of the Indonesian Private Banks Association<br>\n(Perbanas) Gunarni Soeworo said on Wednesday that local banks<br>\nneeded another three years to four years to be able to meet the<br>\ninternationally accepted CAR standard.<\/p>\n<p>She said that what was more important now was to take measures<br>\nto strengthen the banks so that they could resume lending<br>\nactivities and help accelerate economic growth.<\/p>\n<p>President of state-owned Bank Rakyat Indonesia (BRI)<br>\nconcurred.<\/p>\n<p>He said that BRI currently had a CAR level of around 13<br>\npercent, and if the central bank imposed the minimum 12 percent<br>\nCAR requirement, it would be hard for the bank to expand its<br>\ncredit.<\/p>\n<p>\"The tough requirement must be delayed,\" he said.<\/p>\n<p>CAR is the ratio between capital and risk-weighted assets<br>\nmainly credit. The higher the CAR, the healthier the bank is.<\/p>\n<p>Currently, Bank Indonesia set a minimum CAR requirement of 8<br>\npercent.  Raising this requirement would force banks to allocate<br>\nmore funding to meet the capital requirement instead of<br>\nchanneling them as loans to the business sector.<\/p>\n<p>Bank Indonesia is planning to apply the 12 percent CAR<br>\nrequirement soon, possibly next year, in a bid to meet the<br>\ninternational banking standard.<\/p>\n<p>The late 1990s financial crisis had sent the CAR of many banks<br>\nplunging into negative territory, prompting the government to<br>\nlaunch a costly bailout program or to close some of the banks.<\/p>\n<p>Under the central bank plan, banks which were not able to meet<br>\nthe CAR requirement would have to either merge with stronger<br>\nbanks or close.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bankers-oppose-higher-car-requirement-1447893297",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}