The selection process has begun with the central bank initiating a review of 75 category-A banks. These banks maintain a CAR (capital adequacy ratio) of at least 4 percent and NPLs (Non-Performing Loans) of less than 35 percent but are nonetheless showing signs of vulnerability due to the slow pace of debt restructuring and recovery in the real sector.

Ali Said Kasim, official at Bank Indonesia’s Bank Monitoring Section, stated that the ce