IDEAS home Printed from https://ideas.repec.org/a/taf/bindes/v40y2004i1p59-75.html
   My bibliography  Save this article

Liquidity support to banks during Indonesia's financial crisis

Author

Listed:
  • J. Soedradjad Djiwandono

Abstract

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.

Suggested Citation

  • J. Soedradjad Djiwandono, 2004. "Liquidity support to banks during Indonesia's financial crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(1), pages 59-75.
    • Handle: RePEc:taf:bindes:v:40:y:2004:i:1:p:59-75
    DOI: 10.1080/0007491042000205204
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/0007491042000205204
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0007491042000205204?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cole,David C. & Slade,Betty F., 1996. "Building a Modern Financial System," Cambridge Books, Cambridge University Press, number 9780521570923.
    2. Armida Alisjahbana & Chris Manning, 2002. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 277-305.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. McLeod, Ross, 2014. "The ill-fated currency board proposal for Indonesia," Studies in Applied Economics 17, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    2. Ross Mcleod, 2006. "Indonesia's new deposit guarantee law," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(1), pages 59-78.
    3. Louis O'Sullivan & Lena Rethel, 2023. "Financial Globalization, Local Debt Markets and New State Financial Activism in Middle‐income Countries," Development and Change, International Institute of Social Studies, vol. 54(2), pages 304-330, March.
    4. Stephen Grenville, 2004. "What sort of financial sector should Indonesia have?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(3), pages 307-327.
    5. Emmanuelle Nys & Amine Tarazi & Irwan Trinugroho, 2013. "Political Connections, Bank Deposits, and Formal Deposit Insurance: Evidence from an Emerging Economy," Working Papers hal-00916513, HAL.
    6. Nys, Emmanuelle & Tarazi, Amine & Trinugroho, Irwan, 2015. "Political connections, bank deposits, and formal deposit insurance," Journal of Financial Stability, Elsevier, vol. 19(C), pages 83-104.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ross McLeod, 2003. "Towards improved monetary policy in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(3), pages 303-324.
    2. Latif Adam & Siwage Dharma Negara, 2015. "Improving Human Capital through Better Education to Support Indonesia’s Economic Development," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 61, pages 92-106, August.
    3. Lavezzolo, Sebastián, 2020. "Political regimes and bank interest margins," Economic Systems, Elsevier, vol. 44(2).
    4. Muhamad Purnagunawan & Victor Pirmana, 2013. "Labor market development in Indonesia Has it been for all?," Working Papers in Economics and Development Studies (WoPEDS) 201317, Department of Economics, Padjadjaran University, revised Jul 2013.
    5. Rodd McGibbon, 2006. "Indonesian Politics In 2006: Stability, Compromise And Shifting Contests Over Ideology," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(3), pages 321-340.
    6. Hadi Soesastro & Haryo Aswicahyono & Dionisius A. Narjoko, 2006. "Economic Reforms in Indonesia after the 1997/98 Economic Crisis," EABER Working Papers 21831, East Asian Bureau of Economic Research.
    7. Manning, Chris. & Aswicahyono, H. H., 2012. "Trade and employment in services : the case of Indonesia," ILO Working Papers 994717673402676, International Labour Organization.
    8. Hal Hill, 2018. "Asia's Third Giant: A Survey of the Indonesian Economy," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 469-499, December.
    9. Budy P. Resosudarmo & Ani A Nawir & Ida Aju P. Resosudarmo & Nina L Subiman, 2012. "Forest Land Use Dynamics in Indonesia," Departmental Working Papers 2012-01, The Australian National University, Arndt-Corden Department of Economics.
    10. Mark Pitt, 1980. "Alternative Trade Strategies and Employment in Indonesia," NBER Chapters, in: Trade and Employment in Developing Countries, Volume 1: Individual Studies, pages 181-238, National Bureau of Economic Research, Inc.
    11. Hal Hill, 2020. "Indonesian Living Standards over 50 Years: A Multidimensional Analysis," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 249-274, September.
    12. Michael T. Rock, 2003. "The Politics of Development Policy and Development Policy Reform in New Order Indonesia," William Davidson Institute Working Papers Series 2003-632, William Davidson Institute at the University of Michigan.
    13. Booth, Anne, 1999. "Initial Conditions and Miraculous Growth: Why is South East Asia Different From Taiwan and South Korea?," World Development, Elsevier, vol. 27(2), pages 301-321, February.
    14. repec:ilo:ilowps:471767 is not listed on IDEAS
    15. repec:ilo:ilowps:295038 is not listed on IDEAS
    16. Prema-chandra Athukorala & Archanun Kohpaiboon, 2013. "Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia," Departmental Working Papers 2013-18, The Australian National University, Arndt-Corden Department of Economics.
    17. Krishna, Vijesh V. & Pascual, Unai & Qaim, Matin, 2014. "Do emerging land markets promote forestland appropriation? Evidence from Indonesia," EFForTS Discussion Paper Series 7, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    18. Gellert, Paul K., 2005. "The Shifting Natures of "Development": Growth, Crisis, and Recovery in Indonesia's Forests," World Development, Elsevier, vol. 33(8), pages 1345-1364, August.
    19. Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:bindes:v:40:y:2004:i:1:p:59-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CBIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.