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Premi Penjaminan Simpanan Berbasis Risiko: Studi Kasus LPS Indonesia
[Risk-Based Deposit Insurance Premium: A Case Study of Indonesia Deposit Insurance Corporation (IDIC)]

Author

Listed:
  • Nizar, Muhammad Afdi
  • Mansur, Alfan

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.

Suggested Citation

  • Nizar, Muhammad Afdi & Mansur, Alfan, 2019. "Premi Penjaminan Simpanan Berbasis Risiko: Studi Kasus LPS Indonesia [Risk-Based Deposit Insurance Premium: A Case Study of Indonesia Deposit Insurance Corporation (IDIC)]," MPRA Paper 97894, University Library of Munich, Germany, revised 31 Dec 2019.
    • Handle: RePEc:pra:mprapa:97894
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    flat rate; deposit insurer; premium; banking restructuring; banks’ risk; risk-based;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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