BI transfers four banks to IBRA

BI transfers four banks to IBRA

JAKARTA: Bank Indonesia announced Friday it had transferred the
supervision of Bank Prima Express, Bank Patriot, Bank Universal
and Bank Artha Media to the Indonesian Bank Restructuring Agency
(IBRA).

The transfer will pave the way for the merger of the four
ailing banks with Bank Bali.

The central bank has previously said that the legal merger of
the five banks could be completed within three months of the
transfer.

The five banks are among the 11 private banks under the
control of IBRA, who is in charge of rehabilitating the banks
back into good financial shape before returning them to the
private sector.

Merging local banks is seen as part of efforts to restructure
the country's troubled banking industry.

At the peak of the 1997 financial crisis, IBRA assumed control
of the banks after most of their loans turned sour. --JP