2017
Keywords: Islamic Microfinance Institution, Islamic Cooperatives, Lender of the Last Resort, Liquidity.
PDFAbstrak
As a financial intermediary institution, Islamic Microfinance Institutions (IMFI), that are known as Islamic Financial Cooperatives, accepts short-term deposits and disburses to long-term loans. This situation makes IMFI desperately need a lender of last resort (LOLR). So far, there has been no LOLR for Indonesian IMFI, so they formed its own LOLR. This study aims to find out how IMFI formed LOLR and find the best LOLR model for IMFI in Indonesia. This study use a qualitative approach with case study analysis. Subjects of this study are IMFIs in Indonesia that selected purposively with 30 managers as key informants. Triangulation of sources and techniques are used to confirm and test the veracity of the information. The results show that there are four models of LOLR of IMFIs; individual, other IMFIs, Islamic bank, and Islamic secondary cooperatives. The best model of LOLR is secondary cooperatives, because the form of IMFIs in Indonesia are primary cooperatives. Some primary cooperatives build a secondary cooperative as LOLR and places excess liquidity. All members of secondary cooperatives have deposit as reserve requirement on Central Bank in banking industry.