Get to know the possible emergency money problem after withdrawing money from BSI

TEMPO.CO, Jakarta Muhammadiyah, one of the largest Islamic organizations in Indonesia, decided to withdraw all its funds from PT Bank Syariah Indonesia, abbreviated as BSI. This decision had a significant impact on BSI's shares, which suffered a drastic decline, reaching a price of IDR 2,180 per share at the end of June 2024.

Muhammadiyah's decision has led to further speculation about whether it will lead to problems rush money. What's the real problem? rush money?

Problem RushMoney

Emergency money or also known as walk at financial institutions occurs when there is a massive withdrawal of money by the public from financial institutions. This phenomenon is often caused by public panic that doubts the stability of the financial institutions where they store their money.

The main reason behind rush money is the loss of public confidence in financial institutions, which can be caused by an economic crisis or internal problems that threaten the sustainability of these institutions.

Rode RushMoney

Phenomenon rush money can be caused by various psychological factors in society and the internal conditions of financial institutions. According to a scientific article by International journal for business administration, economics and lawOne reason is that financial institutions are facing liquidity problems due to their lending patterns of making short-term loans and making long-term loans.

When a lot of money has been lent in the form of long-term loans, only a small part of the money is available in the form of cash in the vaults or offices of financial institutions. Therefore, if there is a simultaneous withdrawal by many people, the financial institution cannot fulfill the request.

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Impact on the country's economy

Emergency money can have a significant impact on a country's economy. First, financial institutions that experience a cash shortage may go bankrupt because they are no longer able to conduct their operational activities.

This results in a loss of public confidence in the financial sector and weakens the financial system as a whole. Second, the community does it rush money may suffer financial losses because the money they withdraw is immature and its value may have diminished.

In addition, rush money It also has the potential to be exploited by irresponsible parties, such as speculators who take advantage of the public panic to profit from market fluctuations, including exchange rates and stock indices. Wider, rush money can cause an economic recession because it disrupts the flow of money and business activities in society as a whole.

To anticipate the negative consequences of rush moneyFinancial institutions often take preventive measures, such as limiting cash withdrawals, temporarily closing the institution or even requesting reserve funds from central financial institutions to meet large cash requests at the same time.

In the Indonesian context it is rush money is an issue we need to pay attention to as it can disrupt the stability of the financial sector and overall national economic prosperity. Awareness of the importance of maintaining public trust in financial institutions is critical to preventing this rush money in the future.

PRINCESS SAFIRA PITALOKA | ADIL AL HASAN
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