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Liquidity support and the financial crisis : the Indonesian experience

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Liquidity support and the financial crisis : the Indonesian experience

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Title: Liquidity support and the financial crisis : the Indonesian experience
Author: Djiwandono, J. Soedradjad
Copyright year: 2002
Abstract: During the Indonesian financial crisis, Bank Indonesia provided liquidity supports to banks facing liquidity problems. This paper argues that this policy became a public controversy because of the magnitude of the possible loss to the governement, which ultimately would have to be borne by the taxpayers. Suspicions of corruption amongst bankers (as the receiving parties) and offficals of Bank Indonesia (as the party that made the decision and the provisions) also added to the public debate. The public's lack of understanding about the issues, given the non-transparency of operations in the banking sector in general, further complicated the issues.
Subject: DRNTU::Social sciences::Economic development::Indonesia
Type: Working Paper
Series/ Journal Title: RSIS Working Papers; 40/02
School: S. Rajaratnam School of International Studies
Rights: Nanyang Technological University

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