Six banks

Six banks
may change
status INI JUDUL DIPAKAI

JAKARTA (JP): Six commercial banks have applied to change
their status into interest-free Islamic banks, Bank Indonesia
director Soebardjo said here on Thursday.

He said that the six banks include Bank Mega, BSB, Bank Ratu,
Bank Intan, Bank IFI and Bank Nusa Nasional.

"The six banks have informally expressed their interest in
changing their status to become Islamic banks," the central
bank's director was quoted as saying by Antara news agency.

Several years ago, the government introduced a concept on
Islamic banks, which base their operations on a profit-sharing
system both with their depositors and borrowers. Bank Muamalat is
the only bank which has so far operated under the so-called
Islamic banking ethos.

According to Soebardjo, banks which operate under the Islamic
system are relatively safer than the conventional banks,
especially in facing any economic turmoil.

He said the interest-free banks are more resistant in facing
the high interest rate environment, which has put most of the
country's banks on the brink of collapse. (29)