Indonesia’s central bank said on Thursday it is proposing to cap single ownership in the country’s banks at a maximum 40 percent for new investment, from up to 99 percent currently.

Halim Alamsyah, the central bank deputy governor responsible for banking supervision, told analysts on a conference call that individuals or families can only own up to 30 percent of local lenders while financial institutions can own up to 40 percent.

“This new regulation will only hold for new initiatives, new investment…there will not be a retroactive regulation,” said Alamsyah.

The rule, if it goes ahead, could scupper a $7.3 billion bid by Singapore’s DBS Group Holdings for Indonesia’s Bank Danamon

(Source: Bank Indonesia)