Tougher regulations on the capital adequacy ratio, reserve requirements, the legal lending limit and other prudential rules would force many banks to merge or sell their stakes to other banks, he said.
42.
Despite the legal lending limits, it is often extremely difficult for the supervisory authority to assess the credit quality of loans and their collateral and to evaluate the origin and quality of their capital.
43.
Two months after assuming his position as central bank governor, Soedradjad improved the 1991 prudential regulations, including those on capital adequacy ratios, allowances for bad loans, loans to deposit ratios and legal lending limits.
44.
"While we don't say to whom loans should be given, the banks should know that loans are needed by businesses and should lend out to the credit lending limit we have set, " he said.
45.
Nevertheless, Soedradjad imposed a new set of prudent regulations pertaining to disclosure requirements, higher capital standards, legal lending limits and foreign exchange exposure which were designed to ensure sound and robust growth in the industry.
46.
There are no federal limitations on the amount of credit that may be extended to buy U . S . government or municipal government debt, although most securities firms have their own internal lending limits.
47.
You might wind up with a card that has a steep interest rate and a much higher lending limit than you really need . ( Yes, credit is not magic Monopoly money; it's a loan .)
48.
Furthermore, the CBS will be enacted on the condition that the central bank is not permitted to provide financial loans to banks and all banks are presumed to be rational and efficient in setting their lending limit.
49.
This explanation implies that the problems of the country's banks have been caused only by inadequate liquidity, while Bank Indonesia and analysts have often stated that many banks have violated legal lending limits and many other prudential regulations.
50.
The government should consider allowing the liquidated banks to resume operations if their shareholders increase capital from their own funds, not from banking loans, to cope with their losses and to correct their violations on the legal lending limit.
