Bank IFI Officially Liquidated

VIVAnews - Bank Indonesia officially announced the annulment of the business permit of Bank IFI. The decision was taken during a meeting involving the Board of Governor of Bank Indonesia.

"As of today, the board of governors has decided that the business license of IFI Bank is revoked. The mechanism and procedure have been specified in the decision issued by Bank Indonesia," said Strategic Director of Bank Indonesia, Dyah Mahkijani, during a press conference on Friday, April 17.

Earlier, a number of VIVAnews anonymous sources in Bank Indonesia said Bank IFI had been given the chance to increase its capital. However, the bank failed to add more capital.

In fact, several investors who were previously said as intending to invest in the bank are yet to stimulate fund.

Bank Indonesia stated that the impact of the liquidation will not be as significant as it was concerning Bank Century. The reason for this is that Bank IFI, different from Century, is not a public company.

"This has nothing to do with the stock market," said Banking Stability Head of Bank Indonesia, Wimbo Santoso, on Friday, April 17.

He said that Bank Indonesia has studied the liquidation from various points of view.

According to him, it has as well small effect toward inter-bank transaction. IFI only possessed inter-bank loans between Rp 8 billion and Rp 9 billion. "Compared to other banks, this is really low," he said.

--

Translated by: Bonardo Maulana Wahono