Indonesian central bank preparing rules to quit single-owner manage of banks

The Indonesian central bank has prepared regulations that may stop a single investor from controlling a majority stake in a commercial bank, a move it hopes will stop misuses of energy that could result in a collapsed bank, media quoting deputy governor as saying on Monday.

The central bank deputy governor Muliaman Hadad quotd by the Jakartaglobe as saying that the guidelines would make the banks have greater corporate governance.

"We are also pushing banks to go public, a single step at a time. The spirit is the fact that we desire to enhance the governance of commercial banks by means of more balanced control by their shareholders," Muliaman mentioned.

Muliaman said a 1999 government regulation allowed Indonesians and foreign folks or entities to very own as much as 99 percent of a bank.

That regulation, he said, could see a bank become dominated by one particular shareholder who controls the bank's operations without being supervised by other owners.

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