Nationalization of Banks is not a new concept in this part of Asia. In most South Asian countries, as also in Indonesia, the banking system is very state owned. Both in India and Pakistan banks have been nationalized. The reasons are more or less same everywhere. The importance of efficient banks for an efficient economy and economic growth are well recognized by the public but there is an ingrained suspicion of banks, of private banks, as anti-social elements that need to be kept on a tight leash. Bank makes money and must therefore be controlled in the interest of monetary policy for economic stability.