JAKARTA, Sept 17 Indonesia's central bank plans
to roll out new banking regulations in October or November that
will link the kind of services lenders can provide to the
strength of their capital, a move that could force some smaller
banks to raise capital or seek mergers.
Governor Darmin Nasution said on Monday the new
'multi-license' regulations will improve the efficiency of
banks. The changes come after new bank ownership norms were
issued earlier this year.
The multi-licenses will replace the single licenses that now
allow banks to engage in multiple businesses, and under the new
rules, only banks with a large amount of core capital will be
able to conduct more than one business.
The new norms could drive consolidation in the nation's
banking sector by making it mandatory for banks who wish to
expand services such as ATMs and branches to meet the new
central bank capital requirements. Small banks would thus have
to add capital or sell out to bigger banks.
"We met with bankers this morning and we're going to
finalise the regulation at end of October or early November,"
Nasution told reporters.
He gave no further details but said Bank Indonesia welcomes
input from bankers before the regulation comes into effect.
(Reporting by Rieka Rahadiana; Editing by Matthew Bigg and