Indonesia's new deposit guarantee law
Bibliographic Data
| ID | 8415702 |
|---|---|
| Authors | Ross H Mcleod (Australian National University, corresponding author) |
| Year | 2006 |
| Volume | 42 |
| Issue | 1 |
| Pages | 59-78 |
| Publication date | 2006-01-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Bulletin of Indonesian Economic Studies (JOURNAL) |
| Journal identifiers | ISSN: 0007-4918 • E-ISSN: 1472-7234 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00074910600632377 |
| OpenAlex | W1993075987 |
| Language | EN |
| Citations received | 3 |
| References cited | 11 |
The blanket guarantee introduced in 1998 in response to the emerging banking and economic crisis resulted in $50 billion of losses to the general public. The government has now introduced a law that allows the phasing out of this blanket guarantee, but also allows its reinstatement in the event of a threatened collapse of the banking system. Rather than eliminating the possibility of any repetition of the previous banking disaster, the new law effectively mandates an almost identical approach to handling system-wide banking collapses in the future, suggesting that the authorities and their advisers learned very little from the recent bitter experience. It is argued here that the crucial starting point for formulating policy in this field is to specify correctly the exact purpose that government intervention is intended to serve: namely, the avoidance of major macroeconomic disruption as a result of bank failures
Business · Control (management) · Economic interventionism · Economic policy · Economics · Government (linguistics) · Intervention (counseling) · Law and economics · Point (geometry) · Political science · Politics · Banking stability, regulation, efficiency · Global Financial Crisis and Policies · Islamic Finance and Banking Studies · Law
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,15 |
| Citation span | 2006 - 2008 (3) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |