Bakrie's banks to merge

JAKARTA (JP): Four private banks under the Bakrie Group, Bank Nasional, Bank Nusa International, Bank Angkasa and Bank Nasional Komersial, are set to merge soon.

Chief commissioner of PT Bakrie Capital Indonesia Nirwan D. Bakrie said the planned merger had received the endorsement of Minister of Finance Fuad Bawazier. The company is the holding firm for the four banks.

"We expect that the merger will be completed faster than previously scheduled,' Nirwan said, adding that it would be named Bank Nusa Nasional.

He said the combined paid-up capital of the banks was expected to exceed the minimum capital requirement set by the government this year.

Commercial banks are required to have minimum capital of Rp 1 trillion (US$125 million) by the end of 1998, Rp 2 trillion by 2000 and Rp 3 trillion by 2003.

Under a recently announced regulation, however, "sound" banks -- those which have cleared their nonperforming loans -- will be allowed to operate with paid-up capital of Rp 250 billion by the end of this year. (aly)