Tiara, Mashill banks discuss merger<\/p>\n
JAKARTA (JP): Bank Indonesia's managing director for
\nsupervision of commercial banks, Hendrobudiyanto, acknowledged
\nyesterday that Bank Tiara and Bank Mashill are negotiating a
\nmerger.<\/p>\n
"There are some discussions between Bank Tiara and Bank
\nMashill about their merger plan," he told announced to clarify
\nrumors about the two banks' merger plan.<\/p>\n
He, however, said the two banks, which are both listed on the
\nJakarta Stock Exchange (JSX), have not yet formally asked for
\napproval from the central bank to merge.<\/p>\n
Hendrobudiyanto said the central bank basically agrees with
\nthe two banks' merger plan as long as the purpose of the merger
\nis to create a business synergy.<\/p>\n
Sources said that the two banks have reached an initial
\nagreement about merging but they could not sign the deal because
\nof a procedural problem.<\/p>\n
Bank Indonesia Governor J. Soedradjad Djiwandono said early
\nthis week that the central bank and the Capital Market
\nSupervisory Agency (Bapepam) are currently preparing a regulation
\nto ensure that a merger involving listed banks will not lead to
\nthe entry of undesirable people in bank management.<\/p>\n
According to the existing regulation, people with a criminal
\nrecord or those who have a shady background in their business
\npractices in the past are prohibited from having bank shares or
\nbecoming bank executives.<\/p>\n
Bank Mashill, which was founded in 1989 by the Karta Wijaya
\nfamily, had total assets of Rp 1.23 trillion as of last December.
\nIts net profit slightly rose to Rp 16.89 billion last year from
\nRp 16.56 billion in 1994.<\/p>\n
A number of local businesspeople made a surprising move early
\nthis year to take over a majority stake in a bank, which is now
\ncontrolled by the Karta Wijaya family. However, the move was
\nfoiled by Bapepam.<\/p>\n
Bank Tiara, which was listed on the stock exchange in August
\n1993, is controlled by PT Ometraco. Last year, the bank recorded
\ntotal assets of Rp 1.31 trillion and a profit of Rp 33.28
\nbillion.<\/p>\n
Hendrobudiyanto said yesterday that the central bank's merger
\nruling covers only mergers among small banks or between small and
\nlarger banks.<\/p>\n
The ruling was issued early last year as part of its bad debt
\nsettlement program. A number of incentives such as a tax break
\nhave also been issued to encourage mergers but banks have not yet
\nbenefited from it. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tiara-mashill-banks-discuss-merger-1447893297",
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