Banks' losses total Rp 38.7t

JAKARTA (JP): Indonesia's 164 commercial banks suffered losses of Rp 38.70 trillion (about US$5.3 billion) in 1999, which is a sharp turnaround from Rp 62.49 trillion in the previous year.

Despite the massive losses, profitability of the country's banking industry showed an improvement, according to the research department of Infobank magazine.

The monthly magazine reported that 72 banks recorded meager profits but the other 92 still suffered significant losses.

The largest losses were suffered by banks joining the government-sponsored recapitalization programs, including Bank Niaga, Bank Danamon, Bank Nusa Nasional, Bank Duta, Bank Internasional Indonesia (BII), Bank Lippo, Bank Universal and three state-owned banks -- Bank Mandiri, Bank Tabungan Negara (BTN) and Bank Negara Indonesia (Bank BNI).

Total assets of the country's banks also showed an improvement, rising by about 30 percent to Rp 812.13 trillion. The total public funds raised by the banks increased by 33 percent to Rp 768.15 trillion. The capital adequacy ratio (CAR) of 13 banks were still below the minimum level of 4 percent set by th central bank. (hen)