Record Details

Deposit Insurance and Bank Liquidity: Does Ownership Structure Matter?

Indonesian Capital Market Review

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Field Value
 
Title Deposit Insurance and Bank Liquidity: Does Ownership Structure Matter?
 
Creator Irwan Trinugroho; Faculty of Economics and Business, Universitas Sebelas Maret
Muthmainah Muthmainah; Faculty of Economics and Business, Universitas Sebelas Maret
Mochammad Doddy Ariefianto; Indonesia Deposit Insurance Corporation
Sutaryo Sutaryo; Faculty of Economics and Business, Universitas Sebelas Maret
Agung Nur Probohudono; Faculty of Economics and Business, Universitas Sebelas Maret
 
Subject Deposit Insurance; Insurance Coverage; Bank Liquidity; Ownership; Indonesia
 
Description We examine how the level deposit insurance coverage affects bank liquidity. We also test the role of ownership in the relationship between deposit insurance coverage and bank liquidity. This study uses quarterly data of Indonesian banks from Q1:2002 - Q2:2008. We argue that the presence of explicit deposit insurance changes a bank‘s behavior in liquidity management in the form of decreasing asset liquidity. We find some evidence on the negative impact of deposit insurance coverage on bank liquidity. However, little is found on the role of ownership structure. The credibility of deposit insurance system and implicit guarantee are the main policy implications.
 
Publisher Management Research Center, Department of Management, Faculty of Economics and Business, U
 
Contributor
 
Date 2016-07-30
 
Type Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journal.ui.ac.id/index.php/icmr/article/view/6037
 
Source Indonesian Capital Market Review; Vol 8, No 2 (2016): July 2016; 59-71
 
Language en