Growth and Type of Bank

From time to time the condition of the banking industry in Indonesia has undergone much alteration. Besides being caused by the internal development of the banking world, is also not free from the influence of developments outside the banking world, such as the real sector in the economy, politics, law, and social. The development of internal and external factors caused the condition of banks in Indonesia can be grouped into four periods. Each – for each period has a special characteristic can not be equated with other periods. Deregulation in the real sector and monetary yagn started in 1980 – and an economic crisis in Indonesia since the end of the year – 1990s are the two main events which have led to the emergence of four periods of banking conditions in Indonesia until the year 2000.

The four periods are:

• Condition of Indonesia’s banking sector before a series of packages – package in the real sector and monetary policy which began in 1980 – an.
• Condition of the banking deregulation in Indonesia after emergence up to the period before the economic crisis in the late – 1990s.
• Condition Indonesia banking on economic crisis since the end of 1990 – an and
• Condition of Indonesian banks at the present time.

Conditions prior to deregulation is strongly influenced by various economic and political interests of the Government. inflation rates high and economic condition macro is a good place along with the banking situation is not mobilize with, it is a phenomenon that occurred before deregulation was as if – if circle that tip of each stem influence. To cope with the situation, reached by way of a series of policy such as in the real sector and monetary sector. In the early stages of deregulation faster impact on the monetary sector through changes in the banking world.

Changes also include increased regulations in the field – a particular field, so this is more precisely defined deregulation change – change driven by monetary authorities to improve performance in the banking world, and eventually also expected to improve the performance of the real sector.