To Merge or Not To Merge - Economy - magz.tempo.co

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Banking

To Merge or Not To Merge

Tuesday, April 17, 2001

With the continued deterioration of the banking sector, there are now calls for banks to merge. Only five are ready to be parent banks. How ready, though?

. tempo : 172849468533.

A cloud is hovering over Indonesian banking. Although last year’s average performance showed an improvement, with an increase in third-party funds and a decrease in non-performing loans, the sector really hasn’t changed all that significantly.

Because the banks are still unable to carry out their intermediary functions, they—especially the recapitalized banks—are highly dependent on the government. The banking environme

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