BI To Run Share Ownership Treshold On Commercial Banks

Jakarta, March 21 (Antara) - Bank Indonesia (BI), the central bank, will run share ownership restriction (treshold) on the commercial banks regulation which is diverted into three categories. BI`s Director of Banking Research and Regulation Irwan Lubis said here on Thursday, that those three categories were based on the bank ownership which are owned by a bank or a financial organization (maximum 40 percent), non-financial organization (maximum 20 percent) and individual (maximum 20 percent). "The treshold category was also related to the financial connection of family acting and concerning," he said. Lubis added the new regulation on the bank share treshold was aimed to achieve a better governance since the control function on bank will be assessed through several steps. Those several steps consist of the regular bank`s manageability check up which is based on the Good Corporate Governance (GCG) assessment rating with its required result is two. "The first manageability check up will be held by the end of December 31, 2013. If there were banks who get bad result, three, four or five GCG rating during the general check up, they were ordered to do divestment of their shares within a period of five years," he said. "And BI will hold monitoring of the divestment process every six months," added Lubis. Lubis noted the share treshold regulation was excluded the state-owned bank and the regional development bank (BPD), however their shares are beyond the treshold requirement. "But, it doesn`t mean we obey the bank`s wellness factor since we will hold more sophisticated supervision to those banks," he said. Actually, the detail of the bank share treshold has included on the BI regulation, but the central bank was considered to issue a form letter as a complement to ease the adjustment by the general bank in Indonesia, he explained.