Liquidation of Bank IFI

Sudden liquidation of a bank would be very frightening for the management, employees and customers of the bank. That’s what I thought when I read about the liquidation of Bank IFI this morning.

According to Detik Finance, the central bank i.e. Bank Indonesia (BI) has liquidated Bank IFI based on the Decision of the Governor of BI No.11/19/KEP. GBI/2009 dated 17 April 2009. According to the Head of BI's Bureau for Financial Stabilization i.e. Wimboh Santoso this action was taken because Bank IFI has suffered losses since it was placed under BI's intensive surveilance in 2002. He said that the liquidation would not have a systemic impact because Bank IFI’s asset as of March 2009 is only Rp 440 Billion, 0.01% of the total asset of our banking industry. While it’s inter-bank loan is less than Rp 8 Billion, and Capital Adequate Ratio (CAR) is less than minimum i.e. 8%.

Meanwhile, Tempointeraktif reported that the Chief Executive of the Savings Guarantor Agency (LPS) Firdaus Djaelani has stated that LPS shall guarantee Rp 175 Billion of the Rp 250 Billion of third party’s money placed in said bank.

Further, TVOne reported that the Head of LPS's Liquidation Division i.e Robert Hutabarat promised that LPS shall guarantee the rights of Bank IFI's 130 employees.

In conclusion I felt that the sudden liquidation of Bank IFI would cause fears among its customers, its employees as as well as other parties who are involved with the operation of said bank. Therefore, I hope that the above mentioned authories would keep all their promises.