Indonesia will determine bank ownership limits based on a grading system that measures the quality of lenders’ corporate governance and financial “health,” Bank Indonesia Deputy Governor Halim Alamsyah said.
Indonesian banks graded three or lower on a five-level scale won’t be eligible for single-entity majority ownership, and investors in such banks who own majority stakes will be required to divest over a five-year period, Alamsyah said at a seminar in Bogor, West Java today.
The rules, which may affect DBS Group Holdings Ltd.’s bid for PT Bank Danamon Indonesia, could take effect at the end of July, Alamsyah said.
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