Premi Penjaminan Simpanan Berbasis Risiko: Studi Kasus LPS Indonesia

Risk-Based Deposit Insurance Premium: A Case Study of Indonesia Deposit Insurance Corporation (IDIC)

Muhammad Nizar and Alfan Mansur

MPRA Paper from University Library of Munich, Germany

Abstract: This research aims to: (i) identify banking performance indicators that can potentially become the basis for risk-based deposit insurance premium in Indonesia, (ii) estimate risk-based deposit insurance rates for individual banks; and (iii) approximate the incurred costs of premium for individual banks. The results show that a number of banking performance indicators that can be used as the basis for risk-based deposit insurance premium encompass such as capital adequacy ratio (CAR), loan to deposit ratio (LDR), non-performing loans, (NPL), and cost to income ratio (CIR). CAR poses the largest weight of 48.48 per cent. Another result estimates the risk-based deposit insurance rates for individual banks ranging from 0.200 to 0.352 per cent per annum. The other result reveals that big banks do not always have a better risk management compared to small banks. Also, banks with a good risk management, indicated by low scores in this research, will burden the same premium costs either based on risk-based scheme or the current flat rate scheme.

Keywords: flat rate; deposit insurer; premium; banking restructuring; banks’ risk; risk-based (search for similar items in EconPapers)
JEL-codes: C12 C54 G21 G28 G30 (search for similar items in EconPapers)
Date: 2019-12-20, Revised 2019-12-31
New Economics Papers: this item is included in nep-ias, nep-isf and nep-sea
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