Dealing with bank system failure: Indonesia, 1997–2003

McLeod, Ross H.

doi:10.1080/0007491042000205222

Cited by 21 publications

(11 citation statements)

References 9 publications

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“…The difference in the result for Indonesia might have been due to the banking crisis faced by the country compared to its peer countries. The massive breakdown in the Indonesian banking sector during the Asian Financial Crisis was an extraordinary aspect for the country [68] compared to its peer countries. The banking sector collapse intertwined with a currency devaluation to spur a twin crisis [69], owing mostly to the undercapitalized and poorly supervised banks [70].…”

Section: Countrymentioning

confidence: 99%

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

et al. 2019

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This study examines the relationship between energy consumption, financial development and economic growth for ASEAN-5 countries, namely Malaysia, Indonesia, the Philippines, Singapore and Thailand, over the period from 1980 to 2017. Finance-growth and energy-growth relationships have been well researched; however, the energy-finance-growth nexus is an equally important but less explored area. Our Auto Regressive Distributed Lags (ARDL) bounds test for cointegration results suggests that the variables tend to move together in the long run for all countries, apart from Indonesia. Our study also considers the effect of a structural break due to financial crisis and confirms that the break does not affect the long-term relationship among the variables; in other words, the financial crisis does not affect the energy-finance-growth nexus. Hence, considering the consistency of energy consumption, the importance of the energy sector must not be undermined, and appropriate energy policies are instrumental in maintaining a well-managed financial sector for sustainable economic growth.Sustainability 2020, 12, 5 2 of 16 demand [15], while the importance of financial variables in investigatng the energy-growth nexus is well documented by [16]. Financial development indicates the actual level of financial resources available for production and channels these funds through banks and stock markets [17]; thus, this promotes economic growth by boosting investment via transparent transactions for productive ventures [15]. A higher level of economic development through raising the capacity of the production sector and attracting foreign investment requires a stable power supply, which necessitates support by the financial sector through channeling resources to the energy sector [18]. A well-developed financial market makes financial resources available to high-return projects; at the same time, this implies better accounting and reporting standards, which increases investors' confidence [19], and attracts Foreign Direct Investment(FDI) [7]; which in turnaffects energy consumption. Similarly, financial development increases energy consumption by enhancing liquidity through the allocation of assets to appropriate ventures [15]. Hence, financial development affects the growth of an economy, which may influence energy consumption [20], and consequently, can act as the missing link in the energy-growth nexus [5]. With the growth in the economy, more productive inputs are needed which are supported by activities such as capital accumulation and energy expenditure where the role of finance is undisputable [21].However, to date, the nature of the relationship remains inconclusive from the relatively small amount of prevailing literature. Some researchers have found a negative relationship between energy consumption and financial development [22], while others detect a positive relationship [13,23]. Similarly, the results of the cointegration and causality analysis-based studies are also inconclusive. Several studies reported bidirectional ...

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Section: Countrymentioning

confidence: 99%

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

et al. 2019

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“…Only a small proportion of the BLBI was repaid, and top offi cials of the central bank who had approved it were subsequently accused of improper behaviour-a number of them ending up in prison-so it is not surprising that their successors would want to avoid a similar fate. On the other hand, these policies ended up costing the general public at least $50 billion (Frécaut 2004;McLeod 2004), so the legislators had good reason to insist that similar policy choices could not be taken too lightly in the future.…”

Section: Figure 7 Effectiveness Index For Governments In Asiamentioning

confidence: 99%

Survey of recent developments

Gunawan

Siregar²

2009

Bulletin of Indonesian Economic Studies

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Two major elections and the increasingly severe global financial crisis (GFC) will dominate politics and economics in Indonesia in 2009. The parliamentary election will be held in April, followed by the presidential election in July. The public is now experienced at voting, and these events are expected to be peaceful and successful. The impact of the GFC is of much greater concern. The economy continued to perform well in 2008. With quite robust economic growth, commendable progress with administrative reform in the finance ministry, and higher than expected oil prices, both tax and non-tax revenues significantly exceeded their 2008 budget targets, leaving the government with unspent funds in excess of Rp 50 trillion. The banking sector also performed well, with lending continuing to expand rapidly. However, there was a significant fall in average capital adequacy as banks took on more risky assets and wrote down their capital in response to falling bond portfolio values. Signs of economic slowdown began to emerge in the second half of 2008, however. The collapse of the global financial services firm Lehman Brothers in September sparked massive sell-offs on stock exchanges and foreign exchange markets around the world, including in Indonesia. In the fourth quarter the disruption in the global economy finally hit Indonesia's real sector. General slowdowns were felt in both the tradable and non-tradable sectors, although the quarterly data were distorted by strong seasonal effects. The robust annual growth of non-oil and gas exports over the last four years came to an abrupt end in the fourth quarter, but the same was true of imports. Thus, although the GFC and a weak rupiah are likely to have a negative impact on export-oriented and high import content industries in 2009, potential balance of payments pressures are more likely to originate in the capital account than in the current account. With a growing expectation that the GFC's impact would intensify, a wide range of fiscal, monetary, finance and trade policy packages were announced in recent months. Financial sector safety net policies were given high priority initially, with the primary aim of supporting the balance of payments rather than avoiding worker lay-offs. Subsequently, fiscal stimulus packages have been introduced, expanded and modified, and the official stance of monetary policy has become more expansionary. However, institutional shortcomings and political bottlenecks seem likely to constrain the effectiveness of these policies as a whole.

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“…Pertama, krisis yang melanda bangsa Indonesia itu tidak diprediksi sama sekali sebelumnya, khususnya tingkat keparahannya itu. Kedua, krisis tersebut disebabkan oleh faktor yang ringan dan bukan berasal dari dalam negeri sendiri, tetapi berasal dari luar negeri, yaitu karena depresiasi mata uang Bath Thailand pada Bulan Juli 1997 (McLeod, 2004). Depresiasi mata uang domestik tersebut ternyata merembes kepada negara-negara Asia Tenggara lainnya, termasuk Indonesia didalamnya.…”

Section: Latar Belakang Penelitianunclassified

Prospek Pengembangan Perbankan Syariah Nasional Pasca Undang Undang Perbankan Syariah (Analisis Dengan Pendekatan Model Statistika Chow Test)

Khalidin¹

2012

SJEKI

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ABSTRAK -Penelitian ini bertujuan untuk mengetahui sejauhmana pengaruh Undang-Undang Perbankan Syariah (UUPS) terhadap pertumbuhan industri perbankan syariah nasional. Metode analisis yang dipakai adalah Ordinary Least Square (OLS), dengan instrumen statistik Chow Test. Pengolahan data menggunakan program ekonometrika SHAZAM Versi 10.1. Hasil penelitian menunjukkan bahwa UUPS tidak mempunyai pengaruh yang signifikan terhadap pertumbuhan industri perbankan syariah secara umum. Dana Pihak Ketiga, Jumlah Nasabah dan Pembiayaan tidak mengalami perubahan sama sekali. Disamping itu, penerapan sistem bagi hasil Profit-Loss Sharing (PLS) yang merupakan prinsip utama operasional perbankan syariah, juga tidak mengalami perubahan yang signifikan. Ini ditunjukkan dengan pembiayaan produk murabahah masih mendominasi portofolio pembiayaan industri perbankan syariah nasional. Kata Kunci : Pertumbuhan Perbankan Syariah, Undang-Undang Perbankan Syariah & Chow Test ABSTRACT -This article aims to determine the influence of Undang-Undang Perbankan Syariah (UUPS) on the growth of Islamic banking industry in

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Dealing with bank system failure: Indonesia, 1997–2003

Cited by 21 publications

References 9 publications

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

Energy–Finance–Growth Nexus in ASEAN-5 Countries: An ARDL Bounds Test Approach

Survey of recent developments

Prospek Pengembangan Perbankan Syariah Nasional Pasca Undang Undang Perbankan Syariah (Analisis Dengan Pendekatan Model Statistika Chow Test)

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