Four banks plan to merge<\/p>\n
JAKARTA (JP): The publicly listed Bank Mashill Utama, Bank
\nJayabank International, Bank Artamedia Indonesia and Bank Ciputra
\nannounced yesterday their intention to merge to enable them to
\nmeet new capital requirements.<\/p>\n
Bank Mashil said that under an agreement signed yesterday it
\nwould become the surviving bank in the merger, with combined
\nassets of Rp 3.6 trillion (US$240 million) and total equity of Rp
\n563 billion.<\/p>\n
Early this year the government introduced a regulation that
\ncommercial banks are required to have minimum capital of Rp 1
\ntrillion by the end of this year, Rp 2 trillion by the end of
\n2000 and Rp 3 trillion by 2003.<\/p>\n
However, under a recently issued regulation, sound banks --
\nthose which have cleared their nonperforming loans -- will be
\nallowed to operate with paid-up capital of Rp 250 billion by the
\nend of this year.<\/p>\n
The statement said the merger agreement was still awaiting
\napproval from the Capital Market Supervisory Agency (Bapepam) and
\nthe central bank, Bank Indonesia. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/four-banks-plan-to-merge-1447893297",
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"sponsor": "Okusi Associates",
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