MORAL HAZARD PADA LEMBAGA PERBANKAN

Abstract

Moral hazard in banking institution correlated with stockholder interest in transferring wealth from bondholders. It can happened when first, there is losses insurer  from the outside such as surety deposit. Second, lenders deviate from the agreement being approved before, so result in losses in banking institution. Third, moral hazard may also happen is there is majority ownership that  result in high ownership concentration in stock value relatively low.

Moral hazard can also happened when stock holders with managements do it together for the interest of stockholders. However, moral hazard will decrease when stock value is high , because of the stake holder do not bears cost of bankruptcy  due to  their own fault. Moral hazard in banking institution eliminated if stock holder and management perform control function tightly and taking action prudentially together.

Key words: moral hazard, stock holder,  losses insurer and surety deposit.