Indonesian Bank Restructuring Agency
Indonesian Bank Restructuring Agency The Indonesian Bank Restructuring Agency (Indonesian: Badan Penyehatan perbankan Nasional (BPPN)) is part of a series of strategic policies taken by the Indonesian government in response to the banking and economic crisis which befell the country following the onset of the Asian monetary crisis in mid-1997. Among other things, the drastic depreciation of the Rupiah reduced bank liquidity, and loss of public confidence to the Rupiah and the banking system in general. As a measure to cope with the scarcity of liquidity in the nation's banking system, Bank Indonesia, as a lender of the last resort, provided liquidity assistance loans to banks. In addition, the Government instituted a blanket guarantee program for all bank liabilities, in order to arrest further erosion of confidence towards the system. IBRA had been established on January 26, 1998 and was planned to have lifespan of five years for undertaking its tasks. Even though IBRA’s liqu...