The Central Bank has decided to wind up Pramuka Savings & Development Bank’s operations, following a Monetary Board meeting late Tuesday. The Central Bank has decided to wind up Pramuka Savings & Development Bank’s operations, following a Monetary Board meeting late Tuesday. The Bank has opted for it after carefully studying Asia Capital’s restructuring proposal and reports from an independent firm of consultants and the Banking Supervision Dept, a the Central Bank said Wednesday.
Pramuka has dominated the headlines for allegedly irregular financial transactions after the Central Bank suspended its operations in October 2002.
The Bank says it explored all options; including seeking help from the banking industry and the move to wind up is in the interest of Pramuka’s depositors.
Having exhausted all available opportunities, the Bank defended its stance saying: “The decision is consistent with international regulatory practice, including action taken by Central Banks of other countries.”
The Bank said it looked for a few key issues, when it reviewed Asia Capital Ltd.’s (ACL) restructuring proposal. “Strict rescheduling/tr