Impact of bank liquidations

Impact of bank liquidations

From Pikiran Rakyat

As we all have learnt, on Nov. 1 the government revoked the business licenses of 16 troubled commercial banks. The government also announced that the customers of these banks could withdraw up to Rp 20 million of their deposits through BNI, BRI and BDN -- temporarily funded by the government -- starting on Nov. 13.

In this context, allow me to pose the following questions:

What will happen to the customer transactions from Oct. 31 because as from Nov. 1, these liquidated banks could no longer clear any unfinished transactions?

Likewise, what will happen to the checks customers have deposited because they usually take three to seven days to clear?

What will be the procedure for customers who have obtained loans from these banks, such as home-ownership loans? Will it be enough for these customers to fully pay back their loans directly to the bank and then take back their collateral such as house certificates, motorized vehicle ownership books and/or other valuable papers?

What will happen to customers with deposits in excess of Rp 20 million? How will the government settle their accounts because it has been reported that one of the customers has a balance as high as Rp 3 billion?

Most importantly, ways must be found to find new jobs for the employees of the liquidated banks. These employees are well- educated professionals. Will they be forced to join the already swelling ranks of unemployed people -- on top of the thousands of Indonesian migrant workers who have returned from Saudi Arabia?

It is my hope that the relevant authorities will satisfactorily answer these questions.

SUGIARTO SUTANTO

Bandung, West Java