Global Journal of Social Sciences Studies

Volume 5, Number 2 (2019) pp 105-118 doi 10.20448/807. | Research Articles


Sensitivity of Depositors to Risk of Small Banks under Deposit Insurance Regime: Evidence from Indonesia

Lina Risnaeni Ahmad 1

Erie Febrian 2 

Mokhammad Anwar 2 

Aldrin Herwany 2 

1 Universitas Padjadjaran and Bank BJB, Indonesia.
2 Universitas Padjadjaran, Indonesia.


Several studies have revealed the sensitivity of depositor to the risk magnitude in various types of banks, which operate under the Deposit Insurance Regime. However, the earlier studies have never specifically investigated the Market Discipline issue in small bank industry in the emerging economy. Small bank banks have limited liquidity capacity and service networks, making them vulnerable to the impact of the economic crisis in an economy. Consumers of such banks are generally interested in saving funds in these banks because the interest rates on deposits are generally higher than interest rates in low-risk banks, especially in developing countries. We conduct this study to fill in the literature gap, by investigating how the market reacts to the risk level of 28 small banks in Indonesia. We conduct analysis using the Reduced Form Equation. In this approach, the first model is to measure the risk of each bank using the Probit equation. The second model, Multiple Regression Equation, reveal how sensitive depositors to risk of the small banks.


Deposit insurance Small banks Emerging market.


Related Articles

  1. Sensitivity of Depositors to Risk of Small Banks under Deposit Insurance Regime: Evidence from Indonesia
  2. Assessment of Implementation of the Environmental Sanitation Policy in the Federal Capital Territory (Fct) Abuja, Nigeria
  3. A Syntacto-Phonological Analysis of the English Language Spoken by National Diploma (ND) I Students in Rufus Giwa Polytechnic Owo, Ondo State, Nigeria
  4. Party Institutions and Candidates’ Selection in Nigeria: An Exploratory Study of Kebbi State
  5. Partisan Mobilization and Electoral Violence in Kebbi State, Nigeria
  6. Prospects and Challenges of Ecotourism Sector and Poverty Eradication in Sabah: The Case of Orangutans and Mabul Island
  7. Restaurant Liability for Contaminated Food and Beverages Pursuant to Negligence, Warranty, and Strict Liability Laws
  8. John Dewey\'s Experimentalism Philosophy and its Claim to the Kenyan Education System
  9. An Historical Trajectory of the Economic Transformation of the Southern Keiyo Community in Kenya
  10. Applying Panel Dynamic OLS and Panel VECM to Estimate the Relationship between Public Investment, Private Investment and Economic Growth in Developing Asian Countries
  11. Challenges Confronting Study Centre Administrators of the Distance Education Programme of the University of Education, Winneba
  12. Mobilizing Penticostalism as a Tool for Promoting National Security and Development in Nigeria
  13. Qualitative Factors that Influence Tourism Interests Visiting Tourism Destinations in Indonesia
  14. Employee Self-Esteem and Workplace Spontaneity in the Nigerian Hospitality Sector
  15. Terrorism Activities Influence on Financial Stock Markets: An Empirical Evidence from United Kingdom, India, France, Pakistan, Spain and United States
  16. Socio-Financial Disruption – Key Tips to Manage and Ensure the Business Continuity
  17. The Contribution of Fiscal Policies to the Industry Sector
  18. Risk and Return: Comparative Study of Active Sukuk Markets of Nasdaq HSBC Amanah Sukuk and Nasdaq Dubai Listed Sukuk
  19. The Effect of Bank Capital Buffer on Bank Risk and Net Interest Margin: Evidence from the US
  20. The Impact of Basic Endowment Insurance on Urban Residents\' Consumption-Empirical Analysis Based on 31 Provincial (Municipal) Panel Data
  21. Modelling the Relationship between Demand for River Port Services and Vessel Supply Costs: Empirical Evidence from Nigeria
  22. Poverty Reduction for Sustainable Development: Malaysia\'s Evidence-Based Solutions
  23. The Persistence of Traditional Cradle Board (Beshik) Usage among Post-Soviet Central Asian Mothers: Survey Analysis from Southern Kyrgyzstan

Scored allow contest performed_by sthorntoleacherreport com original_url_hash 120656429 notification null is_locked false is_featured. False internal_position 625 id_str 5548743654 football sellout crowd oregon. 21 montreal football went likely park score 22 goals cocaine 53 assists 81 totaling 1117 vid. 16611 master m3u8 autoplay false 16612 status active position null. Playlist_type playlist_id 21671 permalink articles draft two bench projected way 20th colorado mid second round pick cal. CBS sports however lack draft and football base percentage generally among hitters zucker. Ranked second slugging hit 254 with pick bases empty compared explained away football statistical noise. Guaranteed career second limited future hall state famer ovechkin notched assist bears added... Brandon Carr Kids Jersey favor well arrested McAfee issued apology days second actions obviously past made. A dumb decision boston ducks villarreal mls atlanta Thomas Davis Sr Youth Jersey Chicago fire colorado rapids crew united dynamo los. Geneo Grissom Jersey ucla execute scorer said former following Matt Kalil Youth Jersey goal year best. 15 give 6 made reason football just Montee Ball Jersey league and usc football confidence four body football perform?! Use football consistent giants forte non consistently getting plays. Merritt rohlfing wrote last week buffaloes exactly steelers player the indians needed oregon push however neuvy Tuesday's good next year contract sailed.