#TITLE_ALTERNATIVE#

• Main Author: DWITIYANA (NIM 10107017); Pembimbing : Dr. Novriana Sumarti, KANIA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/14268
• Institution: Institut Teknologi Bandung

Bank is one of the financial intermediaries which has important role in daily life. According to Undang-undang Negara Republik Indonesia number 10 on 1998, bank is a business entity which collects funds from the public in the form of deposits and channeled to the public in the form of credit and/or other forms in improving the standard of living of the people. Generally, there are two types of banks. They are commercial banks and rural banks. There’s also an authority financial intermediary whose job is to achieve and maintain currency stability. In Indonesia, it is known as Bank Indonesia. <br /> <br /> <br /> <br /> <br /> Every commercial bank in Indonesia has obligations to customers and also to Bank Indonesia. One of the obligations to Bank Indonesia is reserve requirement saving. Reserve requirement is one of many Bank Indonesia’s regulation which is made to control rate of inflation and conditions of excess liquidity in banks so as not to impact on increasing inflation expectation which could affect the monetary stability. Explanation of the provisions contained in Bank Indonesia Regulations number 12/19/PBI/2010 about Giro Wajib Minimum Bank Umum for Bank Indonesia in Rupiah dan foreign exchange. <br /> <br /> <br /> <br /> <br /> The amount of reserve requirement which has to be paid by any commercial bank is affected by bank’s loan rates and deposit rates. This effect can be seen on how people respond to bank rates alteration. The amount of GWM that has to be paid affected by the bank’s Loan to Deposit Ratio (LDR) value. The way the loan and deposit’s rate changes affects the value of GWM is represented by the value of LDR.