IBRA banks' key indicators improve<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Key financial indicators of banks under the control of the
\nIndonesian Bank Restructuring Agency (IBRA) improved in the third
\nquarter of this year compared to the previous quarter, according
\nto State Minister for State Enterprises Laksamana Sukardi, whose
\noffice oversees the agency.<\/p>\n
Laksamana pointed out on Wednesday that the average capital
\nadequacy ratio (CAR) of the 11 IBRA banks increased to 17.26
\npercent compared to 16.78 percent in the second quarter.<\/p>\n
Speaking during a hearing with the House of Representatives
\nbudget committee, he said that the average non-performing loan
\n(NPL) level had declined to 12.04 percent from 14.65 percent.<\/p>\n
Bank Indonesia has required all domestic banks to have a
\nminimum CAR of 8 percent by the end of this year or risk closure.
\nThe central bank has also required banks to have NPLs of not more
\nthan 5 percent by year-end, although there will be no severe
\nsanctions if banks fail to meet this requirement.<\/p>\n
The government via IBRA nationalized four ailing private banks
\nand recapitalized seven private banks between 1998 and 1999
\nduring the height of the country's banking crisis.<\/p>\n
The four nationalized banks included the publicly-listed Bank
\nCentral Asia (BCA), Bank Danamon, Bank Bali, and Bank Niaga. The
\nrecapitalized banks -- the government financed more than 80
\npercent of the recapitalization cost -- are the publicly listed
\nBank Universal, Lippo Bank, Bank Internasional Indonesia (BII),
\nand non-listed Bank Bukopin, Bank Prima Ekspress, Bank Patriot,
\nand Bank Arthamedia.<\/p>\n
Laksamana said that Danamon recorded the highest CAR level of
\n39.01 percent with NPLs of 7 percent, followed by BCA with a CAR
\nof 36.72 percent and NPLs of 3.99 percent.<\/p>\n
He said that as several banks might not be able to meet the
\nyear-end CAR requirement, the government had decided to merge
\nfive banks, namely Bank Bali, Bank Universal, Bank Prima
\nEkspress, Bank Arthamedia and Bank Patriot.<\/p>\n
Key financial indicators (in percent) of 11 IBRA banks in Q3<\/p>\n
CAR NPL Credit growth<\/p>\n
Bank Danamon 39.01 7.0 7.55
\n BCA 36.72 3.99 7.88
\n Lippo Bank 23.25 23.91 2.54
\n Bank Bukopin 22.47 3.24 3.68
\n Bank Niaga 18.70 9.75 10.12
\n BII 14.14 17.93 5.52
\n Bank Bali 13.01 15.53 12.53
\n Bank Prima Ekspress 7.09 18.09 14.11
\n Bank Patriot 6.10 5.40 5.0
\n Bank Arthamedia 5.32 17.02 -20.5
\n Bank Universal 4.07 10.60 2.94<\/p>\n
Average 17.26 12.04 4.67<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ibra-banks-key-indicators-improve-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }