Another bank merger
A listed bank with asset slightly above Rp10 trillion is working on a merger with privately-held bank with asset around Rp5 trillion. The merger is likely to happen this year after significant transactions in both banks. Meanwhile, a bank with asset well above Rp100 trillion will announce a major corporate action soon.
Indonesian banking system clearly needs further consolidation to improve its efficiency. High operating costs & losses from non-performing loans are major issues in the banking system that caused huge margin between Central Bank's benchmark rates and lending rates of above 6%.
We're expecting some mergers this year. State Bank of India (SBI), for example, is expected to merge two banks it acquired last year (Indomonex & Swadesi) or Rabobank's Haga & Hagakita.
READ MORE!!!
Indonesian banking system clearly needs further consolidation to improve its efficiency. High operating costs & losses from non-performing loans are major issues in the banking system that caused huge margin between Central Bank's benchmark rates and lending rates of above 6%.
We're expecting some mergers this year. State Bank of India (SBI), for example, is expected to merge two banks it acquired last year (Indomonex & Swadesi) or Rabobank's Haga & Hagakita.
READ MORE!!!
posted by yosef at 7:43 AM
1 Comments:
Which one is the acquirer? The 10 trillion or 5 trillion? Also, is the 5 trillion a foreign bank?
For the asset above 100 trillion, is it a state-owned enterprise?
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