Depositors rush to withdraw funds from troubled banks<\/p>\n
JAKARTA (JP): Thousands of anxious depositors rushed to
\nwithdraw their deposits Monday from the seven banks placed under
\nthe management of the Indonesian Bank Restructuring Agency (IBRA)
\nby the government over the weekend.<\/p>\n
Hundreds of people lined up at the headquarters of Bank
\nDanamon on Jl. Sudirman, South Jakarta, Bank Modern on Jl.
\nThamrin, Central Jakarta, and Bank Umum Nasional (BUN) on Jl.
\nRasuna Said, South Jakarta, to withdraw their money.<\/p>\n
The government announced Saturday that IBRA had taken over the
\nmanagement of Bank Danamon, Bank Dagang Nasional Indonesia
\n(BDNI), BUN, Bank Tiara Asia, Bank PDFCI, Modern Bank and state
\nBank Ekspor-Impor Indonesia (Exim).<\/p>\n
Most customers said they wanted to withdraw their money
\ndespite repeated government assurances that their deposits were
\ntotally guaranteed by the central bank.<\/p>\n
Thousands of customers reportedly withdrew funds from Bank
\nDanamon branches in Bandar Lampung and Tanjung Karang in Sumatra.<\/p>\n
Hundreds of people were seen rushing into Bank Exim's branches
\non Jl. Raden Intan, in Tanjung Karang, and Jl. WR Supratman,
\nTeluk Betung in Sumatra, Antara reported Monday.<\/p>\n
\"People do not trust the government anymore despite its
\nassurances,\" an executive at Bank Danamon said.<\/p>\n
BDNI and Bank Danamon branches in Aceh were also overrun by
\npanicked customers wanting to withdraw their money.<\/p>\n
Massive withdrawals took place at Bank Exim, BUN and Bank
\nDanamon in Mataram in Lombok, West Nusa Tenggara.<\/p>\n
Similar scenes occurred at Bank Danamon offices in Manado,
\nTomohon and Bitung in North Sulawesi where customers hurried to
\nwithdraw their deposits from both tellers and automated teller
\nmachines (ATMs).<\/p>\n
Most customers were disappointed to find that Bank Danamon's
\nATMs had either run out of cash or did not work.<\/p>\n
Mounting fears that the country's banking industry may be on
\nthe brink of collapse also caused massive withdrawals at some
\nbanks not under IBRA management.<\/p>\n
Hundreds of depositors were seen lining up at Bank Central
\nAsia's branch in Cakranegara, Bali, to withdraw their deposits.<\/p>\n
IBRA vice chairman Rini M Soewandi said the government would
\ntake over the ownership of the suspended banks after they held
\ntheir annual shareholder meetings next month.<\/p>\n
Rini, who is also finance director of the country's largest
\nautomaker PT Astra International, said Monday the owners of the
\nsuspended banks would remain responsible for their banks'
\nliabilities.<\/p>\n
She said IBRA would evaluate the banks' assets and match them
\nwith the total liquidity credits they had received from the
\ncentral bank.<\/p>\n
\"If their assets are not sufficient to repay the central bank
\ncredits, the owners of the banks will be held responsible for
\nrepaying the liquidity credits,\" she said.<\/p>\n
Asked if the government should ban the owners from leaving the
\ncountry, Rini said: \"It's up to the Minister of Finance.\"<\/p>\n
Widigdo Sukarman, the president Bank Negara Indonesia (BNI),
\nwhich was assigned to repay the depositors of the suspended
\nbanks, said Monday that not all of the depositors would withdraw
\ntheir money from his bank.<\/p>\n
\"We expect at least 85 percent of them will keep their
\ndeposits in new accounts at BNI,\" he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/depositors-rush-to-withdraw-funds-from-troubled-banks-1447893297",
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