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Lead story:

AFTER THE CRISIS
Getting Rid of the Rust: Three years after the Crisis, many in the Asiaweek Financial 500 are in the black. Will profitability last?

NATIONS UPDATE
Mini-charts on your nation's banking market:
Australia China IndonesiaJapanPhilippines SingaporeSouth KoreaTaiwan Thailand Hong Kong Malaysia and the best performing banks in
India Sri LankaPakistanBangladesh


ASIA'S HOTTEST STOCKS

Money and Investing: Riding the hottest financial stocks in Asia (plus the 100 hottest bank stocks)

PLUS
Foreign Invasion?: Overseas banks go slow on buyouts
Technology: The nitty gritty of Internet banking
Halfway at full speed: Hong Kong and Singapore rebound
The Acquired: What Danu Bank learned form its new owner
The Home-Alone Bank: Why Taiwan's Chinatrust didn't expand
Int/B> Malaysia
and the best performing banks in
India Srii LankaPakistanBangladesh


Financial 500 Archive
1999 | 1998 | 1997
1996 | 1995


Asiaweek 1000
Your guide to Asia's 1000 largest companies

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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.)


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

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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