Commercial Bank Liquidity Case Study

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CHAPTER 1 INTRODUCTION 1.1 Background of the study Commercial bank liquidity become a serious issue which faced by the citizen of Indonesia during year 2010. The business tendency index in Indonesia issued by the Central Statistics Agency (BPS) recorded its highest level for the first time after the onset of the global financial crisis, reaching 110.24 in June 2016 from 102.2 in 2010 and 96.3 in the first quarter of 2015 (Soedarmono, 2016). However, the significant drop in the growth rate of commercial banks’ third party fund limits the credit supply to the business expand in Indonesia. A bank’s liquidity framework should maintain sufficient liquidity to withstand all kinds of stress event that will be faced and should be able to satisfy credit demand in the country. Therefore, this study will be carried out to determine the specific factors which may…show more content…
What examine the relationship between all the variables with the bank liquidity in Indonesia? What investigate the most significant variable that affect the commercial bank liquidity in Indonesia? 1.4 Research Objective To determine specific factors of bank that affect the commercial bank liquidity in Indonesia To examine the relationship between all the variables with the bank liquidity in Indonesia To investigate the most significant variable that affect the commercial bank liquidity in Indonesia 1.5 Scope of the Study This study is mainly focus on the banks performance in one country which is Indonesia. According to the information collected from the Banks of Indonesia, 50 banks are selected from the list of banks in Indonesia as our sample study. These banks are Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia, Bank Negara Indonesia, Bank CIMB Niaga, Bank Danamon, Bank Permata, Bank Panin, Bank Internasional Indonesia, Bank Tabungan Indonesia and etc. 1.6 Significance of the

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