ANALYSIS OF CHANGES OF THE BONDS INTEREST RATE ON THE BANK UTILITY FUNCTION
Bank is a financial intermediary that is an important part of our daily lives. According to the Law of the Republic of Indonesia Number 10 of 1998 On 10 November 1998 about the banks, which is a bank is a business entity which collects funds from the public in the form of savings and channel them to...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/16761 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Bank is a financial intermediary that is an important part of our daily lives. According to the Law of the Republic of Indonesia Number 10 of 1998 On 10 November 1998 about the banks, which is a bank is a business entity which collects funds from the public in the form of savings and channel them to the public in the form of loans or other forms in order to improve the standard many people's lives. There are two types of banks, namely commercial banks and rural banks (BPR). The distinction between commercial banks and rural banks is commercial banks from engaging in activities providing trafic service payment or a commercial bank, while rural banks do not provide payment trafic services in its activities. Each bank had assets for profit. One of the bank assets are securities / bonds issued by Bank Indonesia with a particular interest. In the Monti-Klein models is said that the bank will maximize profit and utility functions. At this final project will be seen how the effect of interest rate securities / bonds to the bank through the completion of the utility functions of the system dynamics is constructed. The results show that the greater the interest rates of government bonds, the bank gets smaller utilities. |
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