Jan
an. 6, p1
The Financial Services Authority (OJK) and Bank Indonesia (BI) are planning to come up with a framework to identify 'domestic systematically important banks' (D-SIBs) that are critical to the stability of the country's entire financial industry.
Your comments:
My opinion is that the Bank Century bailout was a purely academic decision. You can argue for it or against it, while everyone uses their crystal balls to prepare their arguments. I am not defending the bailout, but we should consider the psychological effect that was probably considered at the time. The jury is still out.
Kosrtlet
Why are these banks considered too big to fail? So what if they are big and they fail? Just liquidate the bank and cut the losses. Indonesian taxpayers should not be made to pay for inefficiency, incompetence and mismanagement! Those employees who lose their jobs will be temporarily unemployed but they will eventually be hired by competing banks that are more efficient.
Please do not go down the same path as the Bank Century fiasco with this 'too big to fail' excuse. If it fails, shut it down and cut the losses and move on. It is only in this way that the banks and the banking industry can grow stronger and more resilient.
Taxpayers' money cannot be used to pay for mismanagement; period.
Malam
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