Lock-Up Regulation of Bank Ownership will Release in May

Lock-Up Regulation of Bank Ownership will Release in May
Tuesday, April 08, 2008

Bank Indonesia stipulation that foreign investor have to keep the ownership in local bank (lock-up) for five years after the acquisition will be release next month.

At the present, the study on the regulation still on final phase.

Made Sadguna, Deputy Director for Banking Research and Arrangement (04/07) said the stipulation also regulating the foreign investor controlling the management of local banks.

Cyrillus Harinowo, Commissioner of PT Bank Central Asia (BCA) Tbk said the growth of indonesian banks much better compared with other countries in the region.

This condition motivate foreign banks to acquire local banks even with expensive price. for example Rabo Bank bought Haga bank 3,5 times from its book price and the last is Maybank that bought PT Bank International Indonesia (BII) Tbk.

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