Half-hearted bank liquidation?

Half-hearted bank liquidation?

Owners and employees of dozens of ailing banks are worried
whether their name will appear on the list of liquidated or
recapitalized banks. These concerns are also affecting the banks'
clients.

Despite an absence of mass panic, many bank clients remain
anxious about the security of their bank deposits. Disregarding
claims made by certain banks' of unfair pressure caused by
clients wishing to withdraw their savings, in general, the
government's liquidation plan for ailing banks is running
smoothly.

Four state banks have been appointed to serve the clients of
the banks which will eventually be named insolvent. The state
banks are BNI, BRI, BCA and Danamon.

Coordinating Minister for Economy, Finance and Industry
Ginandjar Kartasasmita and executives of Bank Indonesia (the
central bank), have suggested that the number of banks affected
will be close to 40. However, some sources speculate that it
could be half that number.

The discrepancy in numbers can be accounted for in two ways.
Either the owners have injected fresh funds into their
institutions so that their banks can follow the recapitalization
program or owners have 'special' relations with top government
officials allowing their banks to dodge the liquidation threat.

We hope the first motive explains the possible decreasing
number of unhealthy banks to be liquidated. If the rationale is
caused by the second possibility, we will have reason for
exasperation, because the hard work of the central bank and
Finance Ministry -- bowing to pressure exerted by certain parties
-- will have been futile.

-- Bisnis Indonesia, Jakarta