Bank Indonesia halts operations of Bank IFI

Indonesia's central bank said today it had withdrawn the operating licence of small lender, Bank IFI, after it failed to increase its capital, but said it was an isolated case and the banking sector remained solid.
It was the second time Indonesian authorities have moved to liquidate a commercial bank since 2004, when some small banks were closed.
Unlisted Bank IFI had total assets of 442 billion rupiah ($41.30 million) as of March 31, the central bank's Makhijani said.
Bank IFI's capital adequacy ratio, a key measure of financial health, was below the minimum requirement of 8 percent, while gross non-performing loans stood at 24 percent as of March, against below 5 percent in most other banks, the official said.
Bank IFI is controlled by the Ramako Gerbang Mas Group, which is owned by businessman Bambang Rachmadi.
Late last year, the state deposit insurance agency rescued middle-sized lender Bank Century Tbk, the first bank rescue since the Asian financial crisis in 1997-1998.