This article the stages of The Indonesian banking crisis of the late 1990s. Almost every stage of the handling of the crisis was compilcated by governance issues. Beyond these, among the lessons identified are how quickly things can get out of hand in an apparently strongly perfoming economy; that at the outset of a crisis will be evolving process. A blanket guarantee covering all bank liabilities may be indispensable, to generate public trust and support, and to ensure that actions taken by the authorities are irreversible. Overall, while not everything was done right, the strategy put in place had positive elements that have served to protect a core banking system and establish condition.