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View all search resultsBukopin closer to solving liquidity issue, but may have lost trust
The OJK's approval of the rights issue has paved the way for South Korea’s KB Kookmin Bank to become Bank Bukopin’s controlling shareholder.
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ublicly listed Bank Bukopin is inching closer to solving its liquidity problem amid reports that customers are facing difficulties withdrawing their funds, sparking concerns over the bank's health.
The Financial Services Authority (OJK) said in a statement on Tuesday that it had approved the shareholders’ plan to inject more capital through a rights issue after a series of leaked documents exposed commotion among Bukopin’s shareholders. The plan was actually approved during a shareholders meeting on Oct. 24, 2019.
“We support Bank Bukopin’s corporate action to restore its customers’ and the public’s trust, especially regarding the bank’s services in the future,” the OJK said in the statement.
The approval also paved the way for South Korea’s KB Kookmin Bank to become Bank Bukopin’s controlling shareholder.
“We are grateful for the shareholders’ and the regulators’ support since the start of this capital injection process,”Bukopin president director Rivan Purwantono said in the statement.
Bukopin has faced problems at a time when the country’s banking industry is experiencing slumping loan growth due to cooling economic activity during the COVID-19 pandemic.
Loan disbursement grew 5.7 percent annually in April, slowing from 7.9 percent in March, Bank Indonesia (BI) data show. At the same time, third party funding expanded 8.08 percent year-on-year (yoy), also cooling from 9.54 percent annual growth in March.
