JEFMS Journal

ABSTRACT:

The main challenge that remains in the process of economic recovery and financial system stability in Indonesia is restoring the banking intermediation function. The purpose of this research is to explain the macroprudential policy as one of the central bank policies in maintaining banking sustainability in Indonesia. This research was conducted using a descriptive qualitative method based on the philosophy of post-positivism. The data collection technique was carried out by interview, so that the final result gave rise to a statement or a thesis. The informants in this study are economic practitioners who are observers of banking monetary policy in Indonesia and senior managers of government bank areas who are experts in the formulation of bank monetary policy. Informants were selected using the snowball sampling technique. The results of this study conclude that macroprudential policies have an impact on the sustainability of banking in Indonesia during the Covid-19 pandemic. In general, macroprudential policies maintain the stability of the Indonesian financial system from two dimensions (cross-section and time series). This macroprudential policy is not a popular policy, but it is very important in order to prevent banking systemic risk in Indonesia.

KEYWORDS:

Macroprudential policy; monetary policy; Sustainability Macroeconomics

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