We develop a tractable model of systemic bank runs. The market-based banking system features a two-layer structure: banks with heterogeneous fundamentals face potential runs by their creditors while they trade short-term funding in the asset (interbank) market in response to creditor withdrawals. The possibility of a run on a particular bank depends on its assets' interim liquidation value, and…
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Penelitian ini menggunakan Component Expected Shortfall (CES) sebagai ukuran risiko sistemik yang berbasis data pasar dan termasuk dalam kategori ukuran distribusi probabilitas. CES menangkap risiko tail dari sistem keuangan secara agregat dan dapat mendekomposisi volatilitas, korelasi, ekspektasi tail, dan bobot dari institusi keuangan. CES mengkuantifikasi kontibusi absolut risiko sebuah bank…
Kehadiran bank asing dalam dalam sistem perbankan Indonesia memberikan dampak bagi kinerja perbankan domestik karena adanya kompetisi. Dengan adanya kehadiran bank asing diharapkan dapat menciptakan efisiensi dalam perbankan nasional. Penelitian ini menganalisis dampak kehadiran bank asing dalam sistem perbankan Indonesia terhadap kinerja perbankan domestik. Metodologi penelitian yang digunakan…
The cotemporary dual monetary system is characterized by an interest system in conventional system and the profit-and-loss sharing (PLS) system in Islamic system, where each of them has a different behavior in influencing the money demand and the monetary stability. This study analyses the components of money demand under both the conventional and Islamic financial system in Indonesia, using a …
We examine the impact of competition and portfolio diversification on banking stability for conventional and Islamic banks in Indonesia. We find that the Islamic banking sector is less stable, when compared to the conventional banking sector. Competition in the banking sector reduces stability, while diversification enhances it. We find that competition negatively impacts the Islamic banks, but…
It is widely suggested in the literature that procyclicality of bank lending behavior may lead to financial instability. This study examines bank-lending channel over the business cycle for Indonesian dual banking system by ascertaining to what extent Islamic banks have a role in the credit smoothing. In this context, we utilize Indonesian dual banking system unbalanced panel data for the perio…
Financial inclusion has been widely discussed in the global level. The increasedengagement in discussion of financial inclusion is inseparable from the implementationof policy priorities which are seemingly leaning towards improving financial inclusionto tackle poverty and growing inequality in a country. This article seeks to identifywhether regional variables (income level, educational level,…
The opening of the Indonesian banking system to foreign penetration following the 1998 financial crisis have led to a series of takeovers and mergers of domestic banks by/with foreign institutions. Following Taboada (2011), we study attempts to find if changes in foreign ownership in the Indonesian banking system affects the efficiency of capital allocation, that is increasing the loans the ban…
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