The determination of Systemic Bank Failure, raises a variety of issues, one
of which is the criteria of Systemic Bank Failure which is not clearly stipulated in
the legislation. This research was used normative method through library research,
which aims: (1) To identify and analyze the legally relevant criteria of Systemic
Bank Failure, (2) To identify and analyze whether needed or not the criteria of
Systemic Bank Failure expressly regulated provided in the legislation, and (3) To
determine and analyze the importance of the role of institutions in determining the
Systemic Bank Failure. The result of this research found that: (1) The criteria of
Systemic Bank Failure was not expressly provided in the legislation, this is due, to
formulate these criteria requires in-depth analysis of various factors, (2) Legal
arrangements of Criteria Systemic Bank Failure, is not required to be set out
clearly in the rules and regulations, consider the development of highly-situational
economy that can cause new indicators, and can lead to moral hazard, (3) Bank
Indonesia as an independent Central Bank requires the role of other agencies to
achieve the goal of creating and maintaining monetary stability in Indonesia, in
addition to the position of banking institutions are important in the national
economy, makes the banking institutions need to be maintained its existence.