Central Bank governor Boediono said Bank Century, which had a clearing payment problem, was closed for business on Friday but would resume operations on Monday.

'The move is aimed at calming the public,' Boediono was quoted as saying by Dow Jones Newswires.

Bank Century, one of the country's smallest, was rumoured to be facing a liquidity shortage after it failed to settle an interbank obligation, but the lender said it merely had an administrative problem that delayed the payment.

Deposit guarantee agency head Rudjito said 'temporary funds' would be injected into the bank to boost its equity capital to loans ratio. He said the agency would run the bank until it found a buyer.

The bank had US$1.2 billion (S$1.83 billion) dollars in assets as of September 30. -- AFP