Journal of Public Administration, Finance and Law (Dec 2022)

SKIM OF BANK’S DEPOSIT GUARANTEE SYSTEM IN SOME COUNTRIES IN THE WORLD BASED ON PRINCIPLES OF JUSTICE

  • Catarina MANURUNG,
  • SUHARININGSIH,
  • Siti HAMIDAH,
  • Hero SAMUDRA

DOI
https://doi.org/10.47743/jopafl-2022-26-17
Journal volume & issue
Vol. 11, no. 26
pp. 190 – 205

Abstract

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The banking business is a trust business. This customer trust can be obtained by the existence of justice and legal certainty in bank regulation and supervision as well as guaranteeing bank customer deposits to improve the continuity of the bank's business in a healthy manner. The continuity of a bank's business in a healthy manner can ensure the security of customer deposits and increase the role of banks as providers of development funds and banking services. The Deposit Insurance Corporation is a deposit insurance company for bank customers that can significantly maintain customer trust in the banking industry after the 1998 crisis. With the 1998 global financial crisis, it is necessary to anticipate that there will be no large-scale withdrawal of bank funds due to the decline in public confidence in guarantee the safety of the money saved. The establishment of the Deposit Insurance Corporation in Indonesia is one of the efforts made by the Government to increase public trust in banking. The government's blanket guarantee program has succeeded in restoring public confidence in the banking system. However, this policy increases the burden on the state budget and has the potential to create moral hazard by bank managers and bank customers. The author will use a normative legal research method with an approach to the relevant laws and regulations, with the hypothesis: there is an injustice in the regulation of the amount of customer deposits in Article 11 (1) of Law Number 24 of 2004 and Government Regulation Number 66 of 2008 concerning the amount of guaranteed deposit value. Deposit Insurance Agency. For depositors whose deposit value is above two billion rupiah, of course this does not fulfill the principle of justice. It is necessary to make a customer deposit guarantee system scheme (Deposit Protection System) that fulfills a sense of justice for all banking customers.

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