Bank Bira in category B

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)