The Boom, Bust and Restructuring of Indonesian Banks
AbstractThis paper studies why currency and monetary shock hit Indonesia's economy and banking sector so severely and the measures that were taken to deal with the banking crisis, the lessons learned, and challenges faced in restructuring and strengthening the banking system. The vulnerable state of the banking sector, in combination with exchange rate and interest rate shocks, led to a systemic banking crisis. The priorities for bank restructuring are to complete the separation of nonviable from viable banks, recoup losses, implement new rules and regulations, and develop an incentive-based system for the consolidation of banks.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 02/66.
Date of creation: 01 Apr 2002
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