Oversight Unseen

Three banks were closed within the year, an indication that BI's oversight function is still weak and that its prevention policies are not working.

December 21, 2004

BANK Indonesia was right to close down Bank Global. Nevertheless, many questions should be asked of its role as the nation's banking oversight body. Why, for instance, are many banks still applying bad banking practices? This year, apart from Bank Global, BI has suspended the licenses of Bank Dagang Bali and Bank Asiatic. There are signs more banks may follow that route.

All three banks have something in common: they were ruined by the acti

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