The Deposit Insurance Corporation (LPS) emphasizes the importance of banking stability for the Indonesian economy. Banking plays a role as guardian of public deposits, provider of financing, and facilitator of payments. Failure of one of these functions can lead to economic collapse, such as what happened in the 1997-1998 crisis. LPS is committed to maintaining the health of the banking sector so that the Indonesian economy remains resilient amidst various global pressures. Signs of an unhealthy bank include high interest rates, low liquidity, and a high risk of loan defaults.
