Policy Impact Analysis of Multiple Licenses to Indonesia Business Banking

Bank Indonesia as monetary authorities issued Bank Indonesia Regulation (PBI) the number of 14/26/PBI/2012 about Business Activity and Office Network Based on Core Capital Bank on December 2012. This policy is known as multiple license policy. With the issuance of this regulation that the whole business should be linked bank core capital owned. Multiple License policy will have an impact to business banking Indonesia, there are will be a fulfillment of capital by the old owner, the transfer of partial ownership of banks, there was a wave of mergers, sales of small banks, there was a wave of foreign ownership, bank stock price fluctuations, customer migration to higher BUKU, downsizing bank became a common BPR which will increasing competition for existing, increased lending to the productive sector in particular for SME financing, expansion of branch network especially by BUKU 3 and 4.