VIVAnews - Indonesia Deposit Insurance Corporation (LPS) is preparing funds totaling to Rp 2 trillion (US$158.7 million) to meet capital adequacy ratio (CAR) of Bank Century.
Bank Century's CAR decreased to minus 2.3 percent due to lack of liquidity. The amount is far beyond the minimum limit that the central bank, Bank Indonesia sets.
"We will maintain CAR at 10 percent. We can then calculate how much fund is needed," said LPS Executive Director Firdaus Djaelani, Thursday, Nov 27.
When asked about the estimated amount of required fund, Firdaus replied that it was "around 2 trillion rupiah." Firdaus was convinced that with fund stimulation from LPS, CAR achievement of 10 percent can be obtained in a short period of time.
Earlier, Bank Century's new Managing Director Maryono refused to cite the amount of fund required, stating that it was against regulation. “The regulation says that some things must be kept confidential. So we are restricted by the regulation,” he said.
Apparently, with the fund stimulation, the bank's CAR has been positive in accordance with Bank Indonesia's provision. "LPS can meet the required 10 percent CAR," said Maryono.
Not only CAR, the bank's main minimum reserve requirement (GWM) has also exceeded the central bank's provision of five percent. In fact, of the prepared funds, said Maryono, there was a surplus of Rp 100 billion (approx. US$8.3 million). "Fund surplus of Rp 100 billion is saved through Bank Indonesia facilities (FASBI)," he said.
Thus, given the CAR and GWM positions, the management will organize Bank Century in line with regulator's provision and prioritizing prudence in order to achieve good corporate management.
Translated by: Bonardo Maulana Wahono
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