JSX suspends Bank Global shares

The Jakarta Stock Exchange (JSX) suspended trading in the shares of small-size Bank Global Internasional on Thursday over reports that the bank's capital adequacy ratio (CAR) had declined sharply, due to problems with its mutual fund products.

In a statement, the JSX said it had suspended share trading in its early session to prevent irregular fluctuations in the bank's shares, following reports over the bank's condition and over unanswered material questions requested by the bourse.

"In relation to recent reports on Bank Global, and since the JSX is yet to receive answers regarding some information deemed material that could affect the bank's operation, the JSX decided to temporarily suspend the bank's shares," the bourse said.

Bank Global shares were suspended at Rp 340 per share.

As reported by several local media, the central bank has put Bank Global under its special surveillance unit since Oct. 27, following a sharp decline in its CAR to below the minimum requirement of 8 percent from 44.84 percent in September.

The drop in the bank's CAR is attributable, among other things, to the bank's so-termed "Prudence" mutual funds, which were not properly managed and were unilaterally converted into deposits without the consent of its customers.

Several of the bank's mutual fund customers were reportedly unable to withdraw their money, as the money had been kept as deposits in the bank.

But bank officials have denied the media reports, saying the bank never launched any mutual fund products. -- JP