No bank liquidation

No bank liquidation

Central bank (BI) governor, Syahril Sabirin, has assured that
there will be no bank liquidation, at least for this year -- a
comforting statement amid reports that many banks have failed to
meet the capital adequacy ratio requirement of 8 percent.

For the time being, the nation is free from panic and the
other psychological effects of bank liquidation. The government
can also save on huge funds needed for such measures.

However, such comfort would only be temporary; there is no
guarantee that no bank will be liquidated next year. This would
happen if bank owners do not seriously consolidate their banks.
The government and the central bank should try harder in
encouraging bank consolidation. A forced bank merger could work
out.

Take the "forced marriage" of Bank Mandiri and Bank Danamon,
the two banks now living as a happy family although they have
been forced to adapt to a new environment.

Other "single" banks should not hesitate in seeking strategic
partners for mergers. The key lies in the good will of
stakeholders.

-- Bisnis Indonesia, Jakarta