Banks under IBRA supervision unveiled
JAKARTA (JP): Minister of Finance Fuad Bawazier yesterday named the 40 commercial banks placed under the supervision of the Indonesian Bank Restructuring Agency (IBRA) as part of efforts to overhaul the ailing banking sector.
When announcing the list, Fuad called on the public not to rush to withdraw their savings because the government guaranteed all deposits held in the banks.
"Placing the banks under IBRA will not affect depositors because all domestic banks are covered by the government's guarantee scheme," Fuad said.
The list of banks did not include the seven suspended by IBRA on April 4, or the seven placed under the agency's management on the same date.
The 40 banks included three state banks, 11 provincial development banks and 26 private banks. (see table)
However, Fuad said that of the 40 banks, the three state banks, one provincial development bank and four private banks had subsequently improved their standing and left IBRA supervision.
The three state banks listed were Bank Bumi Daya (BBD), Bank Pembangunan Indonesia (Bapindo) and Bank Dagang Negara.
Fuad said they were placed under IBRA supervision along with state Bank Ekspor Impor Indonesia (Exim) as part of plans to merge the four.
But the plan was changed and only BBD and Bapindo were merged. The three banks were therefore released from IBRA supervision, he added.
The government is expected to inject fresh capital into Bank Exim shortly so that the bank can once again begin to operate normally under its own management. The bank was among the seven banks brought under IBRA management earlier this month.
Of the 11 provincial development banks initially placed on the list, only South Sumatra Provincial Development Bank managed to improve its standing and leave IBRA supervision after raising its capital adequacy ratio (CAR) to above 5 percent. It has not received liquidity credits from Bank Indonesia.
The 26 private banks placed under IBRA supervision were mostly smaller banks, including Bank Bira, Ficorinvest Bank, Bank Papan Sejahtera and Bank Umum Servitia, which are listed on the Jakarta Stock Exchange. The latter subsequently left IBRA supervision after it too increased its capital adequacy ratio to over 5 percent.
Three other banks -- Bank Kharisma, Bank Nasional Komersial and Bank Sri Partha -- have also left IBRA supervision for the same reason.
Fuad also said four banks under IBRA supervisions, Bank Nasional, Bank Nusa Internasional, Bank Angkasa and Bank Nasional Komersial, had requested a merger. The request has been improved in principle, Fuad added.
IBRA, a government body set up in January to help rehabilitate the banking sector, takes over the management of banks considered to be vulnerable or possess a weakened financial profile. It has wide-ranging powers to restructure such banks, including changing bank shareholders, selling assets, and arranging merger.
A number of criteria are used to determine which banks are placed under its direct supervision. These criteria are used to place the banks in one of three categories.
Category A banks are those which have received liquidity credits from the central bank equivalent to more than five times their total equity, or equal to 74 percent of their total assets. The seven suspended banks are in this category.
Category B banks are those which have received government liquidity credits in excess of Rp 2 trillion (US$250 million), or an equivalent sum equal to more than five times their total equity. The seven banks now under the management of IBRA are classified thus.
Category C banks have received liquidity credits equivalent to more than 200 percent of their capital and which have a capital adequacy ratio below 5 percent. (prb/rid)
A. Suspended banks (April 4, 1998)
1. Bank Kredit Asia
2. Bank Pelita
3. Bank Subentra
4. Bank Surya
5. Centris International Bank
6. Deka Bank
7. Hokindo Bank
B. Bank managements taken over by IBRA
1. Bank Dagang Nasional Indonesia
2. Bank Danamon
3. Bank Expor-Impor Indonesia
4. Bank PDFCI
5. Bank Tiara Asia
6. Bank Umum Nasional
7. Modern Bank
C. Banks placed under IBRA supervision
Private banks:
1. Bank Aken
2. Bank Asia Pacific
3. Bank Baja International
4. Bank Bira
5. Bank Central Dagang
6. Bank Dagang dan Industri
7. Bank Danahutama
8. Bank Dewa Rutji
9. Bank Ficorinvest
10. Bank Intan
11. Bank Lautan Berlian
12. Bank Nasional
13. Bank Nusa International
14. Bank Papan Sejahtera
15. Bank Patriot
16. Bank Putra Surya
17. Bank Sewu
18. Bank Tabungan Pensiun Nasional
19. Bank Tata
20. Bank Uppindo
21. Bank Pesona Kriya Dana (formerly Bank Utama)
22. Indomitra Development Bank
Provincial banks:
1. BPD Daerah Istimewa Aceh
2. BPD Jawa Timur
3. BPD Kalimantan Barat
4. BPD Lampung
5. BPD Maluku
6. BPD Nusa Tenggara Barat
7. BPD Nusa Tenggara Timur
8. BPD Sulawesi Tengah
9. BPD Sulawesi Utara
10. BPD Sumatera Utara
D. Banks withdrwan from supervision
State banks:
1. Bank Bumi Daya
2. Bank Dagang Negara
3. Bank Pembangunan Indonesia
Private banks:
1. Bank Kharisma
2. Bank Nasional Komersial
3. Bank Sri Partha
4. Bank Umum Servitia
Provincial bank:
1. BPD South Sumatra