Indonesian lawmakers are considering a bill that will force foreign banks to sell down majority stakes in local lenders, which, if approved, would drive away the foreign capital needed to further develop the country's financial services sector. The proposed restrictions would reduce the appeal of Indonesian banks for foreign investors as other Southeast Asian nations such as the Philippines and Thailand loosen foreign ownership rules in preparation for the region's economic integration.The multi-party parliamentary commission overseeing banking and finance in Southeast Asia's largest economy is considering a bill that would make foreign banks sell down holdings in Indonesian banks to a maximum of 40 percent within a decade, deputy commission chairman Harry Azhar Azis told Reuters.The central bank has since 2012 limited foreign banks' holdings in local lenders to a maximum of 40 percent. Foreign banks that own controlling stakes in Indonesian lenders include Malaysia's Malayan Banking Bhd, CIMB Group Holdings Bhd, and HSBC Holdings PLC.The proposed bill also calls for investments by foreign banks to be evaluated according to "reciprocity" or whether Indonesian banks can have similar market access to these banks' home countries.
HSBC Holdings plc (HSBC) is a global banking and financial services organizations. Shares of HSBC traded higher by 0.16% or $0.08/share to $51.11. In the past year, the shares have traded as low as $48.86 and as high as $57.97. On average, 1485090 shares of HSBC exchange hands on a given day and today's volume is recorded at 2739570.
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