SINGAPORE (Standard&Poor's) Feb. 21, 2005--The Indonesian banking system risk profile remains high by international standards, despite progress in rebuilding its financial base, said Standard&Poor's Ratings Services today. According to a commentary titled "Bank Industry Risk Analysis: Indonesia" published today, the industry faces risks such as the overhang of sizable, although declining, nonperforming assets (NPAs), sluggish loan growth to the real sector, regulatory forbearance and a degree of economic uncertainty caused by terrorist bombings in 2003 and 2004. "The Indonesian banking sector has slowly begun to rebuild its financial base since the 1997 economic crisis, and progress in this has accelerated in the past three years," said Standard&Poor's credit analyst Adrian Chee of the Financial
