The Right Way for Muamalat
Indonesia’s oldest sharia bank is once again faced with the threat of failing to increase its capital. It is struggling because of poor risk management.
THE government should not interfere with the authority of the Financial Services Agency (OJK) in order to save Bank Muamalat. The bank’s future cannot be determined by affirmative policies because this will lead to an unhealthy banking industry. The moral risk of saving a financial company for political motives could lead to more serious problems in the future.
For the third time in the last two years, Bank Muamalat has failed to incr...