#TITLE_ALTERNATIVE#

• Main Author: (NIM : 101 06 068); Pembimbing Tugas Akhir : Dr. M. Syamsuddin, M.Comm, SURYOGUMILAR
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17344
• Institution: Institut Teknologi Bandung

This &#133;nal project is theoretically discussing about the &#133;nancial crisis that occurred in 2008. The crisis occurred in 2008 reminds us of a phenomenon called bank run. In 2008, the cause of the crisis was grouped into six stylized key features. Basically, the core bank invests its assets into long-term securities and short-term securities. Then the long-term securities can be sold to investors with a high discount rate. <br /> <br /> <br /> In this &#133;nal project, the selling price set will be determined by the market mechanism that whether it will largely determine the occurrence of systemic bank runs effects or not. To acknowledge this, we will try to described two variants, namely uncertainty aversion and adverse selection. Uncertainty aversion is the nature of investors in setting market security prices, security will be discounted with a high discount rate, it can cause the bank unable to meet its liquidity so that bank run with systemic effects could occur. Varian uncertainty aversion is also meets the conditions in which the crisis that happened in 2008. Varian adverse selection relies on the formation of the same market price averaged of all traded securities. This variant also causes a systemic bank run, however variant adverse selection does not interpret all the causes of the crisis in 2008. Thus, these two variants complement the existing theories and become very useful for the government or &#133;nancial institutions in making a policy to avoid a systemic bank run.