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This paper examines the relationship between bank capital inflows and financial stability. Using a sample of publicly-traded commercial banks in Asia over the 2002-2008 period, the empirical results show that higher capital inflows in banking markets measured by the share of foreign liabilities in banking reduces systematic risk, but increases bank-specific risk and total risk. A deeper investigation further suggests that an increase in total risk and bank-specific risk is driven by strong institutional development. Specifically, higher foreign liabilities in banking exacerbate bank-specific risk and total risk in countries with greater economic freedom. Hence, the reinforcement of prudential regulations is necessary to overcome bank-specific risk and total risk, particularly when the countries move to a more liberal economic environment..Printed Journal
| Call Number | Location | Available |
|---|---|---|
| BEMP1402 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Jakarta: Bank Indonesia, Direktorat Riset Ekonomi dan Kebijakan Moneter 2011 |
|---|---|
| Edisi | Vol. 14, No. 2, Oct., 2011 |
| Subjek | Economic freedom Banking Globalization Capital Market Measures of Risk |
| ISBN/ISSN | 14108046 |
| Klasifikasi | NONE |
| Deskripsi Fisik | 16 p. |
| Info Detail Spesifik | Buletin Ekonomi Moneter dan Perbankan |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas |