Rules for Healthy Banks

Bank Indonesia's new credit regulations may be hard on the business world in the short term, but they should be good foundations for strong economic growth.

June 7, 2005

OUR banking system has not learned much from the economic crisis of eight years ago. When the banking system collapsed, the state injected around Rp600 trillion to save it. Today, several banks are about to fall into the same trap: bad loans. The recent performance of the banking sector is emitting similarly worrying signs.

This sad conclusion came out of the recent audit conducted by the Supreme Audit Agency into loans issued by Bank Mand

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