INTEREST RATE METRIS SYSTEM: ALTERNATIVE STRATEGY FOR BANKING INDUSTRY

Authors

Stephanus Ivan Goenawan, Atma Jaya University, IndonesiaFollow

Document Type

Article

Abstract

The financial transaction facilities including Automated Teller Machine (ATM), mobile banking, or internet banking can help customers to make real time transactions across location and time zones. On the basis of these two facts, this research comparatively analyze and prove that the daily interest rate system as commonly practiced by the bank potentially create loss to them. Since the daily interest rate system is based on the change of the date, the customers can double the nominal interest rate income. Using comparative analysis, this paper shows that the potential loss may be prevented when the bank use the metris interest rate system, which is based on the time in seconds.

Recommended Citation

Goenawan, Stephanus Ivan (2016) "INTEREST RATE METRIS SYSTEM: ALTERNATIVE STRATEGY FOR BANKING INDUSTRY," Bulletin of Monetary Economics and Banking: Vol. 18: No. 4, Article 2.
DOI: https://doi.org/10.21098/bemp.v18i4.576
Available at: https://bulletin.bmeb-bi.org/bmeb/vol18/iss4/2

First Page

449

Last Page

474

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Atma Jaya University