ANALYSIS OF INDONESIA DEPOSIT INSURANCE ABILITY TO RESCUE BANK USING DEPOSIT AND LOANS MODEL

• Main Author: Pratama, Thomas
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47850
• Institution: Institut Teknologi Bandung

Financial sector is the most impactful sector in a country’s economy. Bank has a role to distribute funds from those who is willing to invest to those who needs the funds. As a bankruptcy of a bank could cause a systemic turmoil in an economy, there must be an entity who can ensure that all banks could fulfill their liabilities on time. There are diverse entities having this roles all around the world. In Indonesia, Indonesia Deposit Insurance (IDI) is the one who bears such liabilities. With the model that have been developed before, a simulation will be run to approximate the deposits and loans in a bank on a periode of January 2010 – December 2021. That model would be also used to run a simulation of Indonesia Deposit Insurance collecting its premium every one semester to measure IDI’s capability to save banks in a later period. In result, Indonesia Deposit Insurance have a good capability to save banks in a later period, explicitly in the year of 2018 and 2021 with several assumptions held.