JSX suspends Bank Global shares<\/p>\n
The Jakarta Stock Exchange (JSX) suspended trading in the
\nshares of small-size Bank Global Internasional on Thursday over
\nreports that the bank's capital adequacy ratio (CAR) had declined
\nsharply, due to problems with its mutual fund products.<\/p>\n
In a statement, the JSX said it had suspended
\nshare trading in its early session to prevent irregular
\nfluctuations in the bank's shares, following reports over the
\nbank's condition and over unanswered material questions requested
\nby the bourse.<\/p>\n
\"In relation to recent reports on Bank Global, and since the
\nJSX is yet to receive answers regarding some information deemed
\nmaterial that could affect the bank's operation, the JSX decided
\nto temporarily suspend the bank's shares,\" the bourse said.<\/p>\n
Bank Global shares were suspended at Rp 340 per share.<\/p>\n
As reported by several local media, the central bank has put
\nBank Global under its special surveillance unit since Oct. 27,
\nfollowing a sharp decline in its CAR to below the minimum
\nrequirement of 8 percent from 44.84 percent in September.<\/p>\n
The drop in the bank's CAR is attributable, among other
\nthings, to the bank's so-termed \"Prudence\" mutual funds, which
\nwere not properly managed and were unilaterally converted into
\ndeposits without the consent of its customers.<\/p>\n
Several of the bank's mutual fund customers were reportedly
\nunable to withdraw their money, as the money had been kept as
\ndeposits in the bank.<\/p>\n
But bank officials have denied the media reports, saying the
\nbank never launched any mutual fund products. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-suspends-bank-global-shares-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}