Opportunity to Accelerate Banking Consolidation
An employee walks past monitors displaying stock prices at Indonesia Stock Exchange (IDX) in Jakarta on Friday (23/3). The Jakarta Composite Index closed down 0.69 percent, or 43.48 points, at the level of 6,210.7 points.
JAKARTA, KOMPAS -- Banking consolidation is the most relevant narrative concept in any economic condition. However, the fact remains that consolidation has never been easy due to numerous factors, including the perceived availability of huge opportunities for banks.
In the current economic conditions marked by high interest rates and increasingly limited liquidity, for instance, banks may consider the possibility of consolidation. “This can even be an opportunity to speed up banking consolidation. Thus far, banking consolidation happens mostly due to poor economic conditions,” Atma Jaya Catholic University lecturer Prasetyantoko told Kompas on Tuesday (22/1/2019).