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Indonesia:
Cause Célèbre: Save the Banks
Snapshot: 36 banks in the 500 (1999: 36) Assets: $92.9b.
($52.7b.) Profits: -$9.6b. (-$19.4b.)
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The
banks are a disaster. What did you expect?
RESTRUCTURING They are by no means pictures of financial health,
but 160 banks technically remain in business after the Crisis took
out 80 or so. Experts think about 20 would be enough. Bank Indonesia
is considering implementing a minimum capital requirement of 1 trillion
rupiah ($120 million), which would certainly speed up a shakeout.
Standard Chartered's experience in trying to acquire and run tainted
Bank Bali scared away many foreign institutions.
RECAPITALIZATION Indonesia has spent nearly $66 billion on
recapitalization already more than any bank restructuring in
history (but barely more than half what is likely to be needed). Too
bad some of it was apparently wasted on already insolvent borrowers.
REGULATION Stronger bank regulations that require such things
as more comprehensive disclosure of related-party transactions are
in place. The concerns now: Are the rules enforceable? Are penalities
realistic? Can regulators seriously oversee their buddies the
bankers?
Performance
Topnotchers: 10 Best Performing Banks
|
Institution |
HQ |
Assets
$
Mill |
Profits
$
Mill |
Profit
as
% of |
500
Rank
|
Assets |
Equity |
1 |
BANK
MANDIRI
|
Jakarta |
31,708
|
-3,809.8 |
|
|
73 |
2 |
BANK
NEGARA INDONESIA
|
Jakarta |
13,792
|
-1,871.5 |
|
|
147 |
3 |
BANK
CENTRAL ASIA
|
Jakarta |
13,613
|
90.5 |
0.7% |
12.5% |
149 |
4 |
BANK
INTERNASIONAL INDONESIA
|
Jakarta |
5,672
|
-295.4 |
|
|
245 |
5 |
BANK
RAKYAT INDONESIA
|
Jakarta |
4,378
|
-243.8 |
|
|
277 |
6 |
BANK
DANAMON INDONESIA
|
Jakarta |
3,666
|
-988.3 |
|
|
296 |
7 |
BANK
LIPPO
|
Jakarta |
3,356
|
-231.5 |
|
|
305 |
8 |
BANK
PANIN
|
Jakarta |
1,600
|
5.0 |
0.3% |
1.2% |
376 |
9 |
BANK
UNIVERSAL
|
Jakarta |
1,493
|
-240.3 |
|
|
382 |
10 |
BANK
BUANA INDONESIA
|
Jakarta |
1,347
|
39.4 |
2.9% |
50.6% |
387 |
Write to Asiaweek at mail@web.asiaweek.com
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Rating
show the number of banks in each category; "E" is the lowest
grade for financial soundness.
Souce: Moody's Investors Service
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