Century collapsed because of the scandal

JAKARTA - The results of the audit investigation of the BPK on Century Bank revealed that the financial crisis is only a little impact on bank failures in November 2008.

Some results of the audit was submitted by the Chairman of BPK Anwar Nasution in his presentation titled "Reform of Economic Policy and Institutions in Indonesia since 1998" at the Seminar on Indonesia in 2009, in Tokyo, 28-29 September 2009.

"The cause of the fall of Bank Century primarily due more to the various scandals for more than four years," said Anwar was quoted as saying vivanews site, yesterday. The results of this audit mementahkan government explanation for this which mentions that Century was saved by reason of the global financial crisis threatening Indonesia.

Anwar revealed no major upheavals that occurred in the financial markets, including interbank money market, capital market and foreign exchange market when the incident occurred Century Bank collapse.

Anwar said the media reports mentioned that the problem has occurred Century Bank since December 2004. Without following the prescribed requirements, the BI allowed three small banks in trouble, the CIC, Danpac and merged into Bank Pikko Century. The bank then get permission for foreign banks.

Century Bank is a bank with a small scale in Indonesia listed on Jakarta stock exchange, and under the supervision of Bank Indonesia and the Capital Market Supervisory Agency and Financial Institution. The crisis in the bank the first time this happened was when the bank failed to follow the clearance of BI on 13 November 2008. Then on November 21, 2008, Century taken over by LPS. (maghfur)

Source: Daily Publication