Measuring Ability of Banks to Survive Financial Market Upheaval

Some banks need fresh cash injections soon to cope with capital ratio declines and increases in non-performing loans.

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Amid slowing loan growth, Indonesia’s banking sector is facing capital challenges. Some banks need fresh capital injections soon to cope with low capital adequacy ratios (CAR) and high non-performing loan (NPL) ratios.

Several banks are waiting for additional capital from shareholders and strategic investors: PT Bank Bukopin Tbk (BBKP), PT Bank Panin Dubai Syariah Tbk (PNBS), and PT Bank Muamalat Indonesia Tbk. Bukopin will hold a rights issue for 2.72 billion shares with a maximum target of Rp 1.91 trillion on 28 June 2018.

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