ANALYSIS OF CHANGES IN THE PROPORTION OF GOVERNMENT BOND ON BANK'S UTILITY

• Main Author: PRAMESWARI (NIM: 10108051); Pembimbing : Dr. Novriana Sumarti, ARUNI
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/15041
• Institution: Institut Teknologi Bandung

<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Bank is a financial intermediary that has two main activities; accepting deposits and making loans. According to Undang-Undang Negara Republik Indonesia Nomor 10 Tahun 1998, bank is a business entity which collects funds from the public in the form of deposits and channels to the public in the form of credit and or other forms to better the people welfare. There are two types of banks; commercial banks and rural banks (BPR). <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Banks obtain profits from their products that are grouped into an asset. One of bank's assets is government bond. As a financial intermediary, not only do they have to consider about their profits, but they must also consider about society beneffits. Balancing between the bank profits and their contribution for the society could be seen by using the utility function. This thesis shows how the proportion of government bond affects bank's profits and utility function using the system dynamics of deposits and loan volume. The result show the greater proportion of government bond, the better profit and utility of bank. <br />