THE POLITICS OF BANKING: GLOBALISATION AND DOMESTIC POLICY CHANGE | Sukarman | Journal of Indonesian Economy and Business 6322 10728 1 PB

Journal of Indonesian Economy and Business
Volume 24, Number 2, 2009, 163 – 176

THE POLITICS OF BANKING:
GLOBALISATION AND DOMESTIC POLICY CHANGE
Widigdo Sukarman
Universitas Gadjah Mada, Indonesia
(w_sukarman@yahoo.com)

ABSTRACT
The current article aims to elaborate on the history of bank policy modifications as a
response towards economic and financial change, mainly due to globalisation. The central
status of banks in the economy causes a need for the government to protect it in many
forms that differ from one country to another. Bank policy makers that are closed or
esoteric and are short-lived must be opened up to be able to receive long term ideas. The
process is also marked intensively with competing interests between other actors of the
government.
Keywords: esoteric, globalisation, segmentation, deregulation, problem of coordination.