MALAYSIA SAYS IT DEPOSITED FUNDS IN AILING BANK
The Malaysian government has
deposited 405 mln ringgit with the financially troubled
<Cooperative Central Bank Bhd> (CCB) since last October, Deputy
Finance Minister Sabaruddin Chik said.
    He told Parliament the government has always supported CCB.
The statement is the government's first acknowledgment that it
has put money into the bank.
    CCB's management board has been changed twice since last
June. It reported pretax profit of 10.57 mln ringgit in the
half-year to June 30, 1986, down from 19.83 mln ringgit a year
earlier. The bank did not release its net results.
    New bank chairman Nik Hussein Abdul Rahman has said he
asked police to investigate possible wrongdoing and
malpractices related to loans made mainly to property
developers and politicians.
    The bank had a paid-up capital of 52.16 mln ringgit and
deposits totalling 1.67 billion at June 30 last year.
    Malaysia's Central Bank has rescued two large commercial
banks, United Asian Bank Bhd and Perwira Habib Bank (Malaysia)
Bhd, since late 1986.
 REUTER
