Announces new regulations limiting bank ownership
13 Jul 2012
Indonesia's Central Bank announced new regulations limiting bank ownership. The new regulations limit ownership of new acquisitions by financial institutions to 40 percent, non-financial institutions to 30 percent and individual shareholders in conventional banks and their families to 20 percent. However, financial institutions may own more than 40 percent of an Indonesian bank as long as they obtain approval from the Central Bank of Indonesia. In addition, any existing shareholder that controls more than 40 percent of a commercial bank in Indonesia must ensure that its bank remains healthy by the end of 2013. In case that the shareholder fails to abide by the regulations, it will be required to divest its ownership over the limits within five years after January 2014.
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Type:
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Entry and establishment (Ownership and control)
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Industry:
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Services (Financial and insurance activities)
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Sources:
