Liquidity support to banks during Indonesia's financial crisis

Bibliographic Data

ID8416264
AuthorsJ Soedradjad Djiwandono (corresponding author)
Year2004
Volume40
Issue1
Pages59-75
Publication date2004-04-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueBulletin of Indonesian Economic Studies (JOURNAL)
Journal identifiersISSN: 0007-4918 • E-ISSN: 1472-7234
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/0007491042000205204
OpenAlexW2065429894
LanguageEN
Citations received9
References cited5

During the 1997-98 financial crisis, Bank Indonesia provided liquidity support to many banks experiencing difficulties. This policy became controversial because of the magnitude of the likely losses to the government, which in the end would have to be borne by the general public. Suspicions of corruption involving bankers and officials of Bank Indonesia fuelled the debate. Surprisingly, however, concerns of this kind have not been raised in relation to the far larger amount of support provided to banks by the government in the form of recapitalisation bonds. The public's lack of understanding of the operations of the banking sector further complicated the debate. This paper attempts to shed some light on the central bank's actions and on the proposed solutions to the problems that arose from them

Business · Economic policy · Economics · Economy · Financial crisis · Financial system · Government (linguistics) · Language change · Liquidity crisis · Macroeconomics · Market liquidity · Public sector · Recapitalization · Finance · Islamic Finance and Banking Studies

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