BI denies naming bad banks

JAKARTA (JP): Bank Indonesia denied on Friday that it had ever disclosed a list of nine banks that might be facing difficulty in meeting the year-end minimum 8 percent capital adequacy ratio (CAR).

"Bank Indonesia has never disclosed documents containing such information," the central bank said in a statement.

The central bank confirmed, however, that there were nine banks that might be unable to meet the CAR requirement, a state of affairs that brings the risk of closure, but it added that the banks were still being given time to take the necessary measures to address the problem.

This paper quoted in its Thursday issue the name of the nine troubled banks, based on information from Dow Jones newswires.(rei)