Banking reforms in Indonesia : effects on the banking industry
Indonesia government embarked on a series of deregulatory measures in order to improve the efficiency and effectiveness of its banking sector. The first package became effective in 1983 with subsequent packages being implemented in 1988, 1989, 1990, 1991 and 1992. A study of the impact of the ref...
Saved in:
| Main Authors: | , , |
|---|---|
| Other Authors: | |
| Format: | Final Year Project |
| Language: | English |
| Published: |
2015
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/63682 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Indonesia government embarked on a series of deregulatory measures in order to
improve the efficiency and effectiveness of its banking sector. The first package
became effective in 1983 with subsequent packages being implemented in 1988, 1989,
1990, 1991 and 1992. A study of the impact of the reforms on the state, private and
foreign/joint-ventures banks is provided. The reforms had promoted competition in the
Indonesian banking industry. As a result of intense competition, the dominance of the
state banks was reduced and their profit figures also suffered. However, those of the
private and foreign/joint-ventures banks continued to grow. With the rapid expansion
of the industry, bad debts, excess liquidity and shortage of banking professionals were
among some of the problems that plagued the banks. Overall, the operational
efficiency of the banking sector had improved. As the reform is an on-going process,
the regulators must continue to keep a close watch on the future developments of the
banking industry. The success of the reforms will in tum affect the growth of the
economy. |
|---|