REPUBLIKA.CO.ID, JAKARTA -- The consolidation of the banking industry lies in improving skills and strengthening capital while facing the ASEAN Economic Community (AEC) in 2020, the director of Bank Mandiri, Pahala N. Mansury, said.

"The competition of the banking industry in the AEC is completely open, and one way to seriously prepare for it is by enlarging the scale and capital through consolidation," Pahala N. Mansury said here, Saturday.

Banking consolidation can also be used as a way to improve their skills in dealing with the implementation of the ASEAN banking integration in 2020, he added.

"The competition in ASEAN will be completely open," he affirmed.

While facing ASEAN, banking integration is the most important step by regulators as way of incentives, according to him.

"Maybe, there could be more freedom given to banks for opening their branches, and ensuring regulations do not overly restrict the expansion," he noted.

The stakeholders in Indonesia rarely help the banking industry to drive business, he remarked.

"Bank mergers in Indonesia rarely happen, as not all stakeholders encourage the consolidation of the banking industry. It is not only the regulators' responsibility but also that of the community to be aware," he emphasized.

The country's banking industry should be ready to strengthen capital to compete with the foreign banks, president director of Bank Mandiri, Gunadi Budi Sadikin, pointed out.

"We need big capital, not just assets," he added.

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