Because of limited liability, insolvent banks have an incentive to continue lending to insolvent borrowers, in order to hide losses and gamble for resurrection, even though this is socially inefficient. We suggest a scheme that regulators could use to solve this problem. The scheme would induce banks to reveal their bad loans, which can then be dealt with. Bank participation in the scheme would…
This paper examines the effect of two psychological attributes, namely an individual’s risk and time preference, on withdrawal decisions. Our sample is a pool of prime depositors in Indonesia, mainly due to the country’s deposit market being heavily concentrated on such depositors. We find that most of the prime depositors are risk averse long-term depositors. The regression results show th…
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We examine heterogeneity in depositor responses to solvency risk using depositor-level data for a bank that faced two different runs. We find that depositors with loans and bank staff are less likely to run than others during a low-solvency-risk shock, but are more likely to run during a high-solvency-risk shock. Uninsured depositors are also sensitive to bank solvency. In contrast, depositors …
Perkembangan market share perbankan syariah tidak mengalami peningkatan yang signifikan. Otoritas Jasa Keuangan (OJK) berinisiatif mengenalkan Cash Waqf Link Deposit (CWLD) dengan tujuan untuk mengintegrasikan produk sosial dengan komersial. Penelitian ini bertujuan untuk mendalami produk CWLD untuk mengetahui konsep dan formula dari CWLD, serta respon stakeholders wakaf uang. Penelitian ini me…
LPS adalah Lembaga Penjamin Simpanan di Indonesia yang menjamin Simpanan nasabah. LPS rate merupakan bagian dari skema penjaminan yang digunakan LPS untuk menentukan jumlah simpanan yang layak bayar. Penelitian ini bertujuan untuk mengkaji pengaruh suku bunga penjaminan simpanan yang dikombinasikan dengan nominal maksimum simpanan yang dijamin terhadap stabilitas perbankan dan seberapa berpoten…
Cash Waqf Linked Deposit (CWLD) adalah produk baru bank syariah yang mengintegrasikan wakaf uang dengan deposito. CWLD sebagai inovasi dari produk wakaf uang diluncurkan pada tahun 2023 dengan tujuan untuk mengatasi tantangan pengumpulan wakaf uang yang masih belum mencapai potensinya. Dengan demikian, penelitian ini bertujuan untuk mengidentifikasi faktor-faktor yang berpengaruh terhadap niat …
Laporan magang ini disusun untuk mengevaluasi prosedur audit substantif atas akun kas dan setara kas pada PT NFK yang telah dilakukan oleh KAP LMK untuk periode yang berakhir pada 31 Desember 2023. PT NFK merupakan perusahaan dengan lini bisnis di bidang asuransi yang menawarkan layanan asuransi jiwa dan kesehatan. Evaluasi dilakukan untuk melihat kesesuaian antara proses audit yang dilakukan o…
Laporan magang ini berisi pembahasan dan evaluasi atas prosedur audit yang dilakukan oleh KAP ABC terhadap akun modal disetor PT K untuk periode yang berakhir pada tanggal 31 Desember 2022. PT K merupakan perusahaan logistik yang baru berdiri pada tahun 2022 dan belum melakukan kegiatan operasional. Evaluasi prosedur audit atas akun modal disetor dilakukan berdasarkan standar audit yang berlaku…
Tulisan ini menggunakan analisis pramerger agar dapat menelisik permasalahan Bank Take Over (BTO) di Indonesia sejak awal, dengan batasan beberapa variabel keuangan. Tujuan penelitian ini adalah untuk mengetahui pengaruh pangsa aset, pangsa dana, pangsa kredit, Capital Adequacy Ratio (CAR) serta Loan to Deposit Ratio (LDR) terhadap profitabilitas Bank Take Over pramerger di Indonesia dan menget…
This study examines the relation between securitization and loan performance using a comprehensive dataset from a major national mortgage lender. Loans remaining on the bank's balance sheet ex post incurred higher delinquency rates than sold loans, contrasting the negative relation between screening efforts and ex ante probability of loan sale explored by prior studies. Moreover, the performanc…
We provide estimates of holdings of highly rated securitization tranches of U.S. bank holding companies before the credit crisis and evaluate hypotheses that have been advanced to explain them. Whereas holdings exceeded Tier 1 capital for some large banks, they were economically trivial for the typical bank. Banks with high holdings were not riskier before the crisis using conventional measures…
We study the credit supply effects of the unexpected freeze of the European interbank market, using exhaustive Portuguese loan-level data. We find that banks that rely more on interbank borrowing before the crisis decrease their credit supply more during the crisis. The credit supply reduction is stronger for firms that are smaller, with weaker banking relationships. Small firms cannot compensa…
This paper studies the risk taking behavior of Indonesian Banking Industry, especially before and after the establishment and the implementation of Deposit Insurance Corporation (IDIC). Using common set of explanatory variables; we test several empirical models to reveal the conduct of risk management by banks. In the spirit of BASEL II Accord, this paper take closer look at three types of risk…
A central proposition in research on the role of banks in the transmission mechanism is that monetary policy imparts a direct impact on deposits and that deposits act as the driving force of bank lending. This paper argues that the emphasis on policy-induced changes in deposits is misplaced. A reformulation of the bank lending channel is proposed that works primarily through the impact of monet…
Financial development is critical for growth, but its microdeterminants are not well understood. We test leading theories of low demand for financial services in emerging markets, combining novel survey evidence from Indonesia and India with a field experiment. We find a strong correlation between financial literacy and behavior. However, a financial education program has modest effects, increa…
Printed Journal
Printed Journal
The objective of this study is to examine asymmetric rivalry between strategic groups in a given industry. Two research hypotheses argue for the existence of asymmetric rivalry in the sense that strategic groups of small companies have a greater degree of response but a slower speed of response to the actions of strategic groups of large companies, than vice versa. To test this, an ex post appr…
Dual-currency deposit is one of the latest innovative banking products offered by foreign banks in Indonesia. Its much higher interest rate than prevailing deposit interest rate and convertibility to another hard currency may attract many investors.As an investor, one should fully undersrand the risk and return characteristics of this deposit before pouring his funds into this product. This pap…