Sunday, September 5, 2010

BI Ponders Plans to Eradicate Majority Shareholding




Jakarta, Indonesia (News Today) - Bank Indonesia is studying plans to eradicate majority shareholding in banks to improve the banks’ compliance to regulations. The governor of the central bank, Darmin Nasution, said here on Wednesday the eradication of majority shareholding could also help limit foreign ownership in national banks.

"Here we tend to think that shareholders in banks must always include majority shareholders making it easy for foreign parties to become majority shareholders while such thing does not happen in other countries," he said.

He said in other countries majority shareholding is not allowed to prevent violations of regulations and "so that all owners could also watch each other."

Darmin said the matter was still being discussed by a team in Bank Indonesia particularly with regard to maximum ownership in banks.

"(Such as) whether it should be pegged at 20 percent. It is also about affiliations that have to be merged. Family and group (ownerships) must be merged. In this way, if a foreign party comes he will be subjected to maximum regulations" he said.

Source : kompas

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