Eight national banks currently in acquisition, merger process: BI official

Jakarta (Antara News) - Eight national banks are currently in an acquisition and merger process in order to meet the Rp80 billion minimum capital requirement this year, Bank Indonesia (BI) Deputy Governor Muliaman D. Hadad said.

The acquisitions and mergers will hopefully result in a reduction in the number of banks that are not able to meet the minimum capital requirement stipulated in Indonesian Banking Architecture (API) rules, Muliaman said on the sidelines of an Asia Pacific Conference & Exhibition on Banking Excellence (Apconex) here Thursday.

The acquisitions and mergers, he said, were also expected to contribute to the development of a stable and conducive banking industry.

Muliaman, however, said acquisitions and mergers were not the only way to improve core banking skills to develop a sound and strong banking industry.

BI as the central bank had set September 2007 as the deadline for the acquisitions and mergers, and would downgrade the status of banks that failed to meet the target, he said.

Bank Indonesia, he said, was ready to give advice to the concerned banks to reach the target so that the acquisitions and mergers would be successful.(*)
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