Consolidation BANKING

Consolidation is the merging of two or more banks, by establishing a new bank and liquidate banks with or without liquidation.
Causes of the banking needs consolidation:

a. In order to achieve a healthy banking system, strong and efficient to create a stable financial system and encourage a sustainable national economic growth.

b. Consolidation efforts need systematic approaches, is expected to be created so that the consolidation in the banking industry that is more solid.

c. In order to support economic growth around 5-6% per year to the next, the support of credit from the banking minimum of 22% per year.

d. The tight competition in the banking sector so that the necessary institutional strengthening, especially for small banks.

e. Organic growth plan for the banks to reach small-scale minimum capital of Rp 100 billion that was delivered on the business plan look less realistic and not show a clear planning, so that effort consolidates the only rely on grain market is estimated akn not reached.

f. Plan implementation of Basel II in tahun2008 needs support following the impact of technology, human resources, requires banks to immediately strengthen the capital commensurate with the investment needed to face these challenges.

G. To further ensure the achievement of consolidation efforts in the 2010 staging of capital banks needed a clear dampai began in 2007 with the year 2010.

Consolidation Goals:

• Strengthening the institutional banking sector through the strengthening of capital commensurate with the needs investment to meet the challenges ahead.

• Encouraging banks to prepare a more mature in the field of information technology, the quality of human resources and risk management practices, standards, so that in 2011 the bank can operate in accordance with the bank chosen strata.

• Encouraging banks to have the competitiveness that it would be able to support high economic growth annually and a minimum of globalization and the challenges facing the external increasingly complex