-----
WAP:
Why banks in Indonesia have many problems from 1988 to 1997?
AI:
Banks in Indonesia faced many problems from 1988 to 1997 due to several factors, including:
(1) Weak regulation and supervision: The regulatory framework for the banking sector in Indonesia was weak, and the supervision of banks was not effective. This allowed for poor lending practices and poor management of risk.
(2) Lack of competition: The Indonesian banking sector was dominated by a few large state-owned banks, which limited competition and reduced incentives for banks to improve their performance.
(3) Political interference: The allocation of credit was often influenced by political considerations, rather than economic factors, which led to poor lending decisions and high levels of non-performing loans.
#RepublikIndonesia1998
Republik Indonesia 1998
CATATAN: Berarti #reformasi bukan istilah milik #politik, tapi #ekonomi.
CATATAN (2): Buk Mar (@Mari_Pangestu) waktu masih muda. Zaman ekspor pete ke Washington. Courtesy of @AP (Agus Parluten). #WEFhumour
(4) Insufficient capital: Many banks in Indonesia had insufficient capital to support their operations, which made them vulnerable to financial shocks.
