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Jakarta Post

HSBC, Bank Ekonomi wrap up full integration

HSBC, Bank Ekonomi wrap up full integration It's official: PT Bank HSBC Indonesia head of global banking Haryanto Suganda (left to right), retail banking and wealth management director Blake Hellam, president director Sumit Dutta, commercial banking director Catherine Hadiman and head of global markets Ali Setiawan attend the launch of the bank in Jakarta on Tuesday. (JP/Anton Hermansyah)
Anton Hermansyah (The Jakarta Post)
Jakarta   ●   Tue, May 9, 2017 2017-05-09 14:20 1469 4065a5a8898c7cc661d4adf97a014595 1 Business HSBC,bank,integration Free

The Indonesian unit of global bank HSBC launched Tuesday the operation of its merged entity with another local lender, Bank Ekonomi Raharja, under the name PT Bank HSBC Indonesia.

Bank Ekonomi Raharja, which was acquired by HSBC Asia Pacific Holdings Ltd in 2009, became the surviving entity. The assets and liabilities of HSBC Indonesia was transferred to it and the name changed to PT Bank HSBC Indonesia.

The Financial Services Authority (OJK) officially approved the integration on April 17.

(Read also: HSBC, Bank Ekonomi to unify fully in 2017)

“I think this integration demonstrates HSBC's commitment in Indonesia. We invested over US$1 billion in the integration and we believe it is a worthwhile investment,” Bank HSBC Indonesia president director Sumit Dutta said on Tuesday in a press conference.

Dutta added that the new investment was mainly aimed at upgrading the status of Bank Ekonomi Raharja from a bank with a core capital of Rp 1 trillion to Rp 5 trillion (BUKU II) to a bank with a core capital of Rp 5 trillion to Rp 30 trillion (BUKU III). Prior to the integration, HSBC Indonesia was operating as BUKU III bank.

Currently, PT Bank HSBC Indonesia has Rp 14 trillion in capital.

The liquidation of HSBC Indonesia, meanwhile, is expected to be completed in two years. (hwa)