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Banking

Big Banks, Vulnerable Banks

Tuesday, March 12, 2002

Bank Indonesia is sticking close to the vulnerable banks. But if this sector is ever to recover, their numbers must be reduced.

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The news sounded serious: 14 banks are in vulnerable condition, presently under intensive and special monitoring by Bank Indonesia (BI), the central bank.

Even more frightening is that these are no run-of-the-mill banks, they are big, government-owned banks and former private banks that are not small in size. On average, they're all upper-class banks. According to Deputy Director for Research & Banking Regulation at Bank Indonesia, Nels

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