Making Banks More Efficient
Tuesday, February 13, 2007
A number of banks are offering their staff early retirement. Guarantees for adequate compensation would be required.
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ALTHOUGH the economic crisis has lasted 10 years, the national banking industry is still unsteady on its feet. The sluggishness of credit flows shows that the intermediary function is not working. On the operational side, domestic banks are not as busy as banks in neighboring countries. The efficiency of banks here is still low.
The ratio of costs to operational income is high. The average for banks in Indonesia is 80-90 percent. Two of the top 10
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