Indonesia central bank to issue bank ownership rule by end-June

Bank Indonesia said on Tuesday that it was likely to issue new rules on bank ownership by the end of this month, with majority ownership to be allowed above 40 percent depending on the central bank’s approval.

Deputy governor Muliaman D. Hadad, in charge of banking regulation, said approval of majority ownership would depend on the bank’s financial health.

The central bank said last month that it planned to cap single ownership in the country’s banks at 40 percent for new investment, a rule that if implemented would scupper a $7.3 billion bid by Singapore’s DBS Group Holdings for Bank Danamon.

http://in.reuters.com/article/2012/06/26/indonesia-economy-bank-idINL3E8HQ2LP20120626

 

Category: Indonesia