S&P welcomes Lippo Bank fine

S&P welcomes Lippo Bank fine

JAKARTA: Standard & Poor's Ratings Services said Friday that a
fine of Rp 2.5 billion (about US$277,000) imposed on Lippo Bank
Tbk by the Indonesian Capital Market Supervisory Agency is an
encouraging regulatory development.

While an investigation into irregularities in the trading of
shares in the bank continues, the fine nevertheless signaled a
step towards tighter regulations for the financial system as a
whole, S&P said in a statement.

The Indonesian Capital Market Supervisory Agency has also
ordered the bank's current management to explain to shareholders
the contradiction between two financial reports released in late
2002.

A separate directive by the Indonesian Bank Restructuring
Agency ordering a change in the bank's management team later this
month will not, however, affect the rating on the bank, as it
already incorporates the risks inherent in the bank's credit
profile and the environment in which it operates, the agency
said. -- JP