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Bank Global International liquidated.

Bank Indonesia, the country's central bank, said it has revoked the license of Bank Global International after suspending its operation a month ago. The shareholders of Bank Global have shown no serious attempt to improve the financial condition of the bank, the central bank said in a statement. Bank Global; was suspended a month ago for failure to increase its capital adequacy ratio (CAR) to a minimum limit of 8% set by the central bank. The bank's CAR was -39.11% when its license was cancelled on Jan. 13. In addition the bank was found later to have violated banking rules including disruption of banking data and destruction of banking documents. A central bank official Sabar Anton Tarihoran said the bank held Rp 759 billion (US$ 84.3 million) in third party fund when its operation was suspended and its assets were valued only at Rp 400 billion. The government, therefore is estimated to suffer a loss of Rp 359 billion in guarantee for the fund for the depositors. (BI/12/01/05)
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Title Annotation:Corporate News In Brief
Publication:Indonesian Commercial Newsletter
Article Type:Brief Article
Geographic Code:9INDO
Date:Jan 11, 2005
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