IBRA declares BII, Permata, Danamon financially fit

IBRA declares BII, Permata, Danamon financially fit

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) has declared
Bank International Indonesia (BII), Bank Permata and Bank Danamon
financially sound, as it handed back the monitoring of the three
banks to Bank Indonesia (BI).

"The three banks have all fulfilled the minimum required
capital adequacy ratio (CAR), kept their non-performing loans
(NPL) in check and fulfilled all their other obligations to the
state," IBRA chief Syafruddin A. Temenggung said on Thursday
during the handing-over ceremony.

The central bank has set a minimum CAR of 8 percent and a
maximum NPL of 5 percent for banks under IBRA's supervision to be
declared financially fit.

BI's senior deputy governor Anwar Nasution, meanwhile, said
that the monitoring transfer would hopefully restore the public's
trust in the three banks and the banking sector as a whole.

"To further maintain this restoration of trust, BI will
continue to monitor the banks and insist that all banks implement
risk management for their operations," Anwar said.

The three are the last of banks supervised by IBRA to be
declared financially fit, after the agency previously declared
Bank Central Asia (BCA) and Bank Niaga fit.

In wake of the late 1990s financial crisis, the government set
up IBRA to take over many mismanaged banks that crumbled due to
the crisis. The agency has injected some Rp 144.5 trillion (US$17
billion) in emergency liquidity funds to bail out the banks.

IBRA was officially closed late last month, but a skeleton
staff is still helping to wrap up some cases until the end of
April.