Arab Today, arab today stress tests show indonesia’s banks are ok
Last Updated : GMT 11:50:01
Arab Today, arab today
Arab Today, arab today

Stress tests show Indonesia’s banks are OK

Arab Today, arab today

Arab Today, arab today Stress tests show Indonesia’s banks are OK

Jakarta - Arabstoday

Indonesia\'s central bank has stress-tested its domestic banks against possible euro zone downgrades or worse and sees minimal exposure, and expects liquidity to hold up if Western credit is cut in an extreme scenario, a deputy governor told Reuters. Muliaman Hadad said he was very concerned about unease caused by the euro zone debt crisis spreading to consumer expectations, given Southeast Asia\'s largest economy is mostly driven by domestic demand from the world\'s fourth largest population. \"We did some kind of stress-testing — let\'s say if Portugal goes down then what happens to our banking, if Spain goes down, if all goes down — the total exposure is quite minimal,\" Hadad, responsible for banking regulation, said in an interview on Friday. He said domestic banks\' exposure to Europe and the United States was 100 trillion rupiah ($11.1 billion), including letters of credit, or 4.7 percent of total assets. The country\'s largest lenders are Bank Mandiri, BCA and Bank Rakyat Indonesia.   Domestic liquidity would be \"still OK\" if Western trade credit was pulled from the country, said the 51-year-old career central banker. Indonesian markets have been volatile in recent weeks on investor worries over euro zone debt, leading the central bank to intervene to prop up a weakening rupiah this week. Southeast Asia\'s largest economy had earlier this year been attracting strong portfolio flows. \"We\'re very concerned about the next round of the crisis,\" Hadad said, adding he was still optimistic on the fundamentals of the country\'s economy and did not see global turmoil turning out as bad as during the 2008 credit crisis. Bank ownership reforms     Hadad said the focus for the central bank, which unexpectedly slashed its benchmark rate by 50 basis points to a record low of 6 percent earlier this month and next meets on Dec. 8, should now become interpreting and maintaining financial stability. \"It\'s a new era of central banking,\" said Hadad, who will face lawmakers in parliament in early December for tests himself to be re-appointed as a deputy governor since his current term is ending. This focus meant new regulations mooted earlier this year to limit bank ownership to improve the governance in the sector were unlikely anytime soon. The details of the rule, such as whether state banks would be exempted, were still being discussed, Hadad said. The central bank said in August it was temporarily barring takeovers in the banking sector pending implementation of the rule, which has already scuppered some cross-border deals as investors sought clarity, while existing owners worried they may have to sell up. \"We are very busy with the European situation. I don\'t want to trigger something unnecessary, or unintended consequences,\" he said, adding it was better investors waited for clarity, in comments that are likely to prolong takeover uncertainty. However, he said investors were still eyeing a sector with high returns on assets and equity and current loan growth of around 25 percent, in a country touted as one of the world\'s most promising emerging markets. \"Indonesian banking is like a beautiful lady ... everybody is looking of course,\" he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today stress tests show indonesia’s banks are ok Arab Today, arab today stress tests show indonesia’s banks are ok

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today stress tests show indonesia’s banks are ok Arab Today, arab today stress tests show indonesia’s banks are ok

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday