10 Rural Credit Banks Liquidated in 2010

VIVAnews - The Deposit Insurance Agency (LPS) along 2010 handled liquidation processes of 10 rural credit banks. Since its establishment in 2005, the Agency has dealt with 37 banks including one apex bank, 35 rural credit banks and one Sharia rural credit bank.

LPS Executive Chief Firdaus Djaelani said the Agency settled the liquidation process of five banks. Another 26 banks however were still under assessment.

Firdaus said the process resulted in low recovery rate as the assessed banks' assets were of poor quality. Moreover, various illicit practices were found perpetrated by certain banks' officers. "In 2011, nonetheless, the recovery rate has increased by between 10 and 15 percent," he said on Friday.