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Article: SOME JOINT-VENTURE BANKS SEE RAPID PROFIT GROWTH
- Article from:
- Indonesian Commercial Newsletter
- Article date:
- July 13, 1992
CopyrightCOPYRIGHT 1992 P.T. Data Consult, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Amidst the slow process of interest rate reductions, Indonesia's banking circle has been seeing sharp decreases in profits as a result of declining income levels and increasing costs. To illustrate this, the seven state-owned banks, which play the role of market leaders for the banking circle in Indonesia, saw an average 30% decrease in profits for the period of March 1991 - March 1992 while many private national banks saw profit growth, despite at reduced rates.
Joint venture banks, which constitute a new group of banks in Indonesia, seem to have been more resistant to profit degradation resulting from the tight money policy issued by the Government in March 1990 ...