Indonesian bank is liquidated

April 20, 2009 - 0 comments

Jakarta -- The Bank Indonesia says it has liquidated Bank IFI after the bank failed to meet sound banking conditions imposed on it while under regulatory supervision.

ANTARA News reported Sunday that Bank IFI's license was revoked, said Wimboh Santoso, Bank Indonesia`s head of financial system stability.

Wimboh said Bank IFI`s capital adequacy ratio was below 8 percent, while its non-performing loans reached 24 percent.

The bank had been under supervision since 2002. Bank IFI was under special supervision since September, ANTARA reported.

Wimboh said the liquidation would not have wide-ranging effects since Bank IFI's assets were 0.01 percent of the total assets of the banking industry.