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