CIMB Niaga

PT Bank CIMB Niaga Tbk.

Type	Public/subsidiary
Traded as	IDX: BMGA
Industry	Financial services
Founded	1955 (as Bank Niaga)
Headquarters	Jakarta, Indonesia
Key people	Nazir Razak
Parent	Commerce Kapital (1955-2002) Lippo Group (1997-2008) CIMB Group (2002-present)
Website	www.cimbniaga.com

PT Bank CIMB Niaga Tbk (CIMB Niaga) is Indonesia's fourth largest bank by assets, established in 1955. CIMB Niaga, which is majority-owned by CIMB Group, is the largest payment bank in terms of transaction value under the Indonesian Central Securities Depository. With 11% of market share, CIMB Niaga is the third largest mortgage provider in Indonesia. ^[1]

History

Bank Niaga

CIMB Niaga was formerly known as Bank Niaga, which was first established in 1955 as a national private bank. After it was set up, the bank focused on establishing trust with its customers and on the well-being and professionalism of its employees. In 1969 when crisis hit the private sector in Indonesia, Bank Niaga remained sound and was eligible for Bank Indonesia’s Guarantee. Then in November 1974, Bank Niaga revamped its business plans and became a full service public bank to better meet the demands of customers.

After a merger period with several other commercial banks, the function and individuality of the Bank were restored in 1975. The status was resumed to that of a state-run commercial bank. The official name was changed to "Bank Niaga 1955".

In 1976, the bank launched a Professional Loan Program, providing loans for professionals like engineers and doctors. In 1981 and 1982, Bank Niaga 1955 became the first bank in Indonesia to apply an online banking system as well as a network system for its branches. It introduced a foreign currency exchange network in various branches in 1985 along with a variety of new products.

In 1987, Bank Niaga 1955 set itself apart from the competition when it became the first bank in Indonesia to introduce ATM services.

In June 1989, Bank Niaga made an initial public offering (IPO) to be listed on the Indonesian Stock Exchange. The shares were over-subscribed by four times the issued shares at 20.9 million shares.

In 1998, Bank Niaga expanded its customer base and began providing services to upper-middle class customers.

In 1999, Bank Niaga was put under the supervision of the Indonesian Bank Restructuring Agency, because it did not meet the 20% shareholders’ funds required for the recapitalization exercise.

In 2002, Commerce Asset-Holding Berhad (now known as CIMB Group) acquired Bank Niaga. It was re-branded in May 2008 from PT Bank Niaga Tbk to PT Bank CIMB Niaga Tbk.

Lippo Bank

Lippo Bank (simplified Chinese: 力宝银行; traditional Chinese: 力寶銀行; pinyin: Lì Bǎo Yínháng) was Indonesia's 9th largest bank in Indonesia by the number of the assets. It was established in 1948 and controlled by ethnic Chinese Mochtar Riady together with the Lippo Group. Indonesia sold the stake in Bank Lippo as part of asset disposals aimed at cutting the government's budget deficit and recouping the 450 trillion rupiah it spent to bail out banks after the 1997 Asian financial crisis. Swissasia Global bought 52.1 percent of Bank Lippo in February 2004 from the Indonesian Bank Restructuring Agency for $142 million. The agency took control of Bank Lippo from its previous owners, the Riady family, after the government injected funds into the lender in 1999 to boost capital.

Former Lippo Bank in Makassar on May 2008 (now CIMB Niaga Makassar brach)

The family still holds a minority stake, partly through PT Lippo E-Net, which owned 5.6% of the lender. Despite their minority holding, the Riady's retained controlling rights.

On 26 August 2005, the bank's shareholders and Bank Indonesia approved the sales of the 52.05% controlling stake held by Swissasia Global to Santubong Investment B.V which was wholly owned by Khazanah Nasional Berhad, the investment arm of the Malaysian federal government. The sales took effect on 30 September the same year.^[2]^[3]

Since Khazanah, had an indirect interest of 93 percent in Lippo Bank through Santubong Investment BV and Greatville Pte. Ltd., and also owns 64 percent of Bank CIMB Niaga through Bumiputra-Commerce Holdings, Bank Niaga and Lippo Bank had to be merged to comply to the Indonesian central bank's "single presence policy".^[4] On 1 November 2008, Lippo Bank officially merged with Bank CIMB Niaga^[5] and are known as PT Bank CIMB Niaga Tbk the Indonesian subsidiary of CIMB Group.

CIMB Niaga

Later on 1 November 2008, Khazanah Nasional Berhad, as the ultimate shareholder of Bank CIMB Niaga (via CIMB Group) and of Lippo Bank, merged the two financial institutions together under Bank Indonesia’s Single Presence Policy.^[6]

Implications

The bank's United States subsidiary was implicated in the scandal of improper contributions to the Clinton-Gore Campaign. According to a 1998 Senate Governmental Affairs Committee report, by 1992, while employed by Lippo Bank in California, John "Huang began to raise illegal foreign money for the DNC through Lippo-owned shell companies ... " This money, which wound up in Democratic coffers, was ultimately traced to the "greater China region."

"Huang's colleagues at Lippo Bank . . . never understood his corporate duties and described him as a `mystery man,' " the report said.

References

↑ CIMB Group subsidiary information
↑ Lippo Bank History
↑ NEAC - Khazanah major shareholder of Bank Lippo
↑ Jawabali.com
↑ "CIMB Niaga history". Archived from the original on 2010-04-13.
↑ CIMB Niaga History

External links

CIMB Group Official Site
CIMB Niaga Official Site
(Indonesian) Scholarship Information from CIMB Niaga

Banks in Indonesia

Central bank: Bank Indonesia

Conventional banks

State-owned banks	Bank Mandiri Bank Negara Indonesia Bank Rakyat Indonesia Bank Tabungan Negara

National private foreign exchange banks	Bank Agroniaga Bank Anda Bank Artha Graha Internasional Bank Bukopin Bank Bumi Arta Bank Capital Indonesia Bank Central Asia Bank CIMB Niaga Bank Danamon Bank Ekonomi Raharja Bank Ganesha Bank Hana Bank Himpunan Saudara 1906 Bank ICB Bumiputera Bank ICBC Indonesia Bank Index Selindo Bank Maybank Indonesia Bank Maspion Bank Mayapada Bank Mega Bank Mestika Dharma Bank Metro Express Mutiara Bank Bank Nusantara Parahyangan Bank OCBC NISP Bank of India Indonesia Panin Bank Bank Permata Bank QNB Kesawan Bank SBI Indonesia Bank Sinarmas Bank UOB Indonesia

National private non-foreign exchange banks	Anglomas Internasional Bank Bank Andara Bank Artos Indonesia Bank Bisnis Internasional Centratama Nasional Bank Bank Dipo International Bank Fama Internasional Bank Harda Internasional Bank Ina Perdana Bank Jasa Jakarta Bank Kesejahteraan Ekonomi Bank Liman International Bank Mayora Bank Mitraniaga Bank Multi Arta Sentosa Bank Nationalnobu Prima Master Bank Bank Pundi Indonesia Bank Royal Indonesia Bank Sahabat Purba Danarta Bank Sinar Harapan Bali Bank Tabungan Pensiunan Nasional Bank Victoria Internasional Bank Yudha Bhakti

Regional banks	Bank Jambi Bank Kalsel Bank Kaltim Bank Sultra Bank BPD DIY Bank Nagari Bank DKI Bank Lampung Bank Kalteng Bank BPD Aceh Bank Sulsel Bank BJB Bank Kalbar Bank Maluku Bank Bengkulu Bank Jateng Bank Jatim Bank NTB Bank NTT Bank Sulteng Bank Sulut Bank BPD Bali Bank Papua Bank Riau Kepri Bank Sumsel Babel Bank Sumut

Joint-venture banks	Bank ANZ Indonesia Bank Commonwealth Bank Agris Bank BNP Paribas Indonesia Bank Capital Indonesia Bank Chinatrust Indonesia Bank DBS Indonesia Bank KEB Indonesia Bank Mizuho Indonesia Bank Rabobank International Indonesia Bank Resona Perdania Bank Sumitomo Mitsui Indonesia Bank Windu Kentjana International Bank Woori Indonesia

Foreign banks	Bank of America Bangkok Bank Bank of China Citibank Deutsche Bank HSBC JPMorgan Chase Royal Bank of Scotland Standard Chartered Bank of Tokyo-Mitsubishi UFJ

Sharia banks

State-owned banks	Bank BNI Syariah Bank Muamalat Bank Syariah Mandiri

National private foreign exchange banks	BCA Syariah Bank BJB Syariah Bank BRI Syariah Bank Mega Syariah Panin Bank Syariah Bank Syariah Bukopin Bank Victoria Syariah

Joint-venture banks	Bank Maybank Syariah Indonesia

Sharia business units of conventional banks

State-owned banks	Bank BTN Syariah

National private foreign exchange banks	Bank Danamon Syariah CIMB Niaga Syariah BII Syariah OCBC NISP Syariah Bank Permata Syariah

Regional banks	Bank BPD Aceh Syariah Bank BJB Syariah Bank DKI Syariah Bank Kalbar Syariah Bank Kalsel Syariah Bank NTB Syariah Bank Riau Kepri Syariah Bank Sumsel Babel Syariah Bank Sumut Syariah

Foreign banks	HSBC Amanah

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CIMB Niaga

History

Bank Niaga

Lippo Bank

CIMB Niaga

Implications

See also

References

External links