Legal Standing Creditor Customers During Banks Experience Liquidation

ABSTRACT:Bank liquidation begins with the revocation of its business license by the Financial Services Authority, which then forms a liquidation team. The liquidation team was formed by the Deposit Insurance Corporation whose role was to rescue, in the sense of guaranteeing deposits from bank customers whose licenses were revoked and implementing resolutions (restructuring) of failed banks. The guarantee for bank customer funds is based on Article 54 Paragraph (1) of the LPS Law jo. Article 17 Government Regulation Number 25 of 1999 concerning Bank Business License Revocation, Dissolution and Liquidation of Banks, depositors of funds are in the backward priority order and therefore the depositors of funds are themselves concurrent creditors, who must also compete for repayment or return of their deposits. On the other hand, legal protection must absolutely be given to customers who deposit funds. Legal protection for customers is carried out from the upstream, namely by maintaining the continuity of the bank as an institution in particular and protection of the banking system and protection by granting preferential rights to customers who deposit funds.

Keynote:legal position, customer creditors, liquidity.