Indonesian Regional Banks Challenged
(The following statement was released by the rating agency) Link to Fitch Ratings’ Report: Indonesian Regional Development Banks here JAKARTA, August 18 (Fitch) Fitch Ratings says access to new capital and corporate governance continue to be the biggest challenges canada goose uk black friday that canada goose factory sale Indonesia’s regional banks face in supporting their rapid loan canada goose uk shop growth. The financial positions of the regional governments in Indonesia, which canada goose uk outlet are the major shareholders of the BPDs, are considered weak, limiting the buy canada goose jacket cheap capital they can canada goose store provide to the banks, Fitch says in a new special report. In addition, many regional development banks, known as Bank Pembangunan Daerah (BPDs), do not have appropriate corporate governance due mainly to weak internal controls, canada goose coats poor canada goose coats on sale accounting practices and ineffective risk management. Intervention from regional governments also makes it difficult for the banks’ management teams to uk canada goose outlet conduct business prudently. There are 26 BPDs in 31 provinces in Indonesia. Although they have cheap Canada Goose high market shares in their respective regions, their contribution to the overall banking system remains small, at about 8% of total banking assets as of end 2013. Fitch’s ratings on the banks reflect the potential support they may receive from the central government through the regional governments. The BPDs are important to the central government, which use them to channel funds to pay civil servants cheap canada goose uk and finance government special projects. Their importance will grow as Indonesia’s regions contribute to a larger share of national revenue. The BPDs’ uk canada goose financial performances are expected canada goose coat to come under pressure in the short term due to the weaker economic environment and rising interest rates, buy canada goose jacket which will hurt the sector’s margins and asset quality, which is already weaker than the average for Canada Goose online the wider banking sector. This compares with the recent past when profitability has been helped by rapid loan growth and wide margins. The ratings of the four Fitch rated Indonesian regional development banks are: PT Bank Pembangunan canada goose black friday sale Daerah Riau Canada Goose Jackets Kepri National Long Term Rating at ‘A(idn)’; Outlook Stable PT Bank Pembangunan Daerah Lampung National Long Term Rating at ‘A(idn)’; Outlook Stable Canada Goose Online PT Bank Pembangunan Daerah Sulut National Long Term Rating at ‘A(idn)’; Outlook Stable PT Bank Pembangunan Daerah Maluku National Long Term Rating Canada Goose Outlet at ‘A(idn)’; Outlook Stable Contacts: Iwan canada goose clearance sale Wisaksana Director 62 21 2988 6807 PT Fitch Ratings Indonesia Canada Goose Coats On Sale DBS Bank Tower 24th Floor Suite 2403 Jl. Prof. Dr. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS canada goose clearance LINK: https://www.canadagooseoutlet4online.com here. PUBLISHED RATINGS, canadian goose jacket CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT Canada Goose sale ALL TIMES. FITCH’S Canada Goose Parka CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE canada goose FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.