Maximum Ownership in Indonesian Banks 40 Pct
The banking authority will apply certain conditions on banks' status.
(VIVAnews/Nur Farida Ahniar)
VIVAnews - Bank Indonesia is set to limit share ownership in banks by 40 percent. However, the regulation will not be applied to healthy banks.
Deputy Governor of Bank Indonesia, Muliaman D. Hadad, said the regulation on share ownership will be put into use for industries, non-bank corporations, and banks with different percentage, and is implemented both for foreign and domestic share owners.
Prior to putting the regulation into effect, the banking authority will apply certain conditions on banks' status.
"Should banks be capable of improving their status, I believe that it's okay," he said.
Muliaman said the regulation on maximum share ownership will also be applied to new investors.
Earlier, Deputy Governor of Bank Indonesia, Halim Alamsyah, said the maximum limit of share owners for individuals is set at 20 percent. In addition, as for individuals or families who own shares through certain corporations are restricted to have 30 percent of ownership.
As for ultimate shareholders, the maximum ownership is set at 40 percent.
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