Bank Mayapada announces 9.16 percent CAR after audit
Bank Mayapada announces 9.16 percent CAR after audit
JAKARTA (JP): Publicly listed Bank Mayapada Internasional
revealed on Wednesday that its capital adequacy ratio (CAR) was
9.16 percent, according to a financial due diligence audit
conducted by international auditors.
The bank said in a media statement that the CAR level was
above the government's year-end minimum requirement of 4 percent,
and the minimum level of 8 percent set by the Bank for
International Settlement.
Bank Mayapada is the first to announce publicly its CAR
status, following Minister of Finance Bambang Subianto's
announcement last week on the initial result of the government-
sponsored due diligence.
Bambang said only 54 commercial banks had a CAR level of more
than 4 percent. He declined to disclose any names, but pledged
that he would make the disclosure in January.
The announcement was based on financial audit results on the
country's 166 commercial banks. Seventy banks were revealed to
have CAR levels of between minus 25 percent and plus 4 percent.
These banks will have to join the recapitalization program to
meet the year-end minimum CAR requirement if they want to
survive.
The remaining banks have a CAR level of less than minus 25
percent, meaning that they are not eligible to join the
recapitalization program.
The banks have been given until the end of this month to take
measures, such as merging or injecting fresh capital in order to
be eligible to the recapitalization program.
The banks with a CAR of above 4 percent will not have to join
the recapitalization program.
Bank Mayapada was established in 1990, became a foreign
exchange bank in 1993, and was listed on the stock exchange in
August 1997. At the end of September 1998, the bank had total
assets of Rp 880.49 billion, outstanding credit of Rp 454.51
billion, and third party funds (deposits) of Rp 604.3 billion .
The bank said that although it expected to book a profit this
year, its profitability had deteriorated due to the negative
spread suffered by the banking sector as a whole. (rei)
JAKARTA (JP): Publicly listed Bank Mayapada Internasional
revealed on Wednesday that its capital adequacy ratio (CAR) was
9.16 percent, according to a financial due diligence audit
conducted by international auditors.
The bank said in a media statement that the CAR level was
above the government's year-end minimum requirement of 4 percent,
and the minimum level of 8 percent set by the Bank for
International Settlement.
Bank Mayapada is the first to announce publicly its CAR
status, following Minister of Finance Bambang Subianto's
announcement last week on the initial result of the government-
sponsored due diligence.
Bambang said only 54 commercial banks had a CAR level of more
than 4 percent. He declined to disclose any names, but pledged
that he would make the disclosure in January.
The announcement was based on financial audit results on the
country's 166 commercial banks. Seventy banks were revealed to
have CAR levels of between minus 25 percent and plus 4 percent.
These banks will have to join the recapitalization program to
meet the year-end minimum CAR requirement if they want to
survive.
The remaining banks have a CAR level of less than minus 25
percent, meaning that they are not eligible to join the
recapitalization program.
The banks have been given until the end of this month to take
measures, such as merging or injecting fresh capital in order to
be eligible to the recapitalization program.
The banks with a CAR of above 4 percent will not have to join
the recapitalization program.
Bank Mayapada was established in 1990, became a foreign
exchange bank in 1993, and was listed on the stock exchange in
August 1997. At the end of September 1998, the bank had total
assets of Rp 880.49 billion, outstanding credit of Rp 454.51
billion, and third party funds (deposits) of Rp 604.3 billion .
The bank said that although it expected to book a profit this
year, its profitability had deteriorated due to the negative
spread suffered by the banking sector as a whole. (rei)