PERAN LEMBAGA PENJAMIN SIMPANAN DALAM MENGATASI RISIKO SISTEMIK DI SEKTOR PERBANKAN INDONESIA

Abstract

The Deposit Insurance Agency (LPS) plays a vital role in addressing systemic risks in the Indonesian banking sector. With its mandate as a deposit insurer, LPS provides certainty to bank customers in facing potential bank failures. Additionally, LPS also contributes to strengthening financial system stability by providing protection to customer deposits in crisis situations. Through strict supervision and regulation policies, LPS mitigates risks that could disrupt banking sector stability. Furthermore, LPS also enhances public trust in the banking sector by guaranteeing customer deposits. Thus, LPS not only serves as a financial security guard for individual customers but also acts as a frontline defender in maintaining overall financial system stability in Indonesia.