Bank Bira in category B

JAKARTA (JP): Publicly listed Bank Bira has announced its listing in the "B category" by Bank Indonesia, making it eligible to join the government's recapitalization program.

"Bank Bira is currently working on a business plan for the recapitalization program," the bank said in a statement.

The government requires all of the country's commercial banks to have minimum CAR levels of 4 percent by the end of March this year. CAR is the ratio between risk-weighted assets and equity capital.

Under the central bank's plan, banks with CAR above 4 percent are listed in the A category, meaning they are exempt from the recapitalization program.

Banks with CAR of between less than 4 percent and minus 25 percent fit the B category, allowing them to take part in the recapitalization in which 80 percent of the funds needed to meet the minimum CAR level. Institutions with CAR less then minus 25 percent, listed in the "C" category, may face liquidation if their owners are unable to upgrade their status. (aly)