Bank portfolio model and monetary policy in Indonesia

Zulverdi, Doddy; Gunadi, Iman; Pramono, Bambang

doi:10.1016/j.asieco.2006.12.006

Cited by 16 publications

(4 citation statements)

References 2 publications

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“…However, it is possible that state-owned banks' greater increase in government securities in the post-crisis period can be partly explained by the government's efforts to recapitalize insolvent banks. For instance, in Indonesia, the government issued bonds to the central bank in exchange for funds needed for the recapitalization program initiated in 1999, and at the same time the central bank resold the bonds to the recapitalized banks (Zulverdi et al, 2007).…”

Section: Regression Results On Other Performance Measuresmentioning

confidence: 99%

The Impact of State Ownership on Performance Differences in Privately-Owned Versus State-Owned Banks: An International Comparison

et al. 2008

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Section: Regression Results On Other Performance Measuresmentioning

confidence: 99%

The Impact of State Ownership on Performance Differences in Privately-Owned Versus State-Owned Banks: An International Comparison

et al. 2008

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“…For example, Santoso (1998) examines the determinants of problem banks in Indonesia. Zulverdi, Gunadi, and Pramono (2007) study banks' behavior in portfolio selection and its impact on the effectiveness of monetary policy. However, to the best of our knowledge, no extensive study has examined how product diversification relates to bank risk in Indonesia.…”

Section: Introductionmentioning

confidence: 99%

Bank risk and non-interest income activities in the Indonesian banking industry

Hidayat

Kakinaka

Miyamoto

2012

Journal of Asian Economics

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The recent trend of product diversification in the Indonesian banking industry underscores the importance of non-interest income activities. This study examines the relationship between product diversification and bank risk over the period of 2002-2008. Our analysis shows clear evidence that the effect of product diversification on bank risk depends highly on the bank's asset size. Specifically, the degree of product diversification is negatively associated with bank risk for small-sized banks. Conversely, the degree of product diversification is positively related to bank risk for large-sized banks. This finding suggests that deregulation encouraging banks to become more involved in non-traditional activities may have an adverse effect on the overall banking system where large-sized banks are playing a significant role in Indonesia.

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“…In the aftermath of the Asian financial crisis, the Indonesian financial authorities tightened the prudential regulations in order to strengthen the banking industry. In response, the Indonesian banking industry expressed risk‐averse behavior in supplying finance only to well‐known borrowers and denying funds to new or more risky borrowers (Rosengard & Prasetyantoko, ; Zulverdi, Gunadi, & Pramono, ). In such an environment, decreases in information asymmetries from increases in the perceived credibility of financial statements could be very relevant.…”

Section: Introductionmentioning

confidence: 99%

Affiliation of Indonesian audit firms with Big4 and second‐tier audit firms and the cost of debt

2019

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This paper documents that in Indonesia, where litigation risk is low and foreign audit firms can only enter the market through affiliation with a local audit firm, the appointment of a local audit firm affiliated either with a Big4 or a second‐tier audit firm reduces the cost of debt for listed companies significantly. This finding holds irrespective of the risk profile of the client and is independent of whether or not we control for endogenous auditor choice. There is less conclusive evidence of a difference in the magnitude of the effect of Big4 affiliation versus affiliation with a second‐tier audit firm. Our evidence is in line with the idea that Big4 and second‐tier audit firms are perceived as applying uniform quality criteria around the world, regardless of the local circumstances in which they operate.

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Bank portfolio model and monetary policy in Indonesia

Cited by 16 publications

References 2 publications

The Impact of State Ownership on Performance Differences in Privately-Owned Versus State-Owned Banks: An International Comparison

The Impact of State Ownership on Performance Differences in Privately-Owned Versus State-Owned Banks: An International Comparison

Bank risk and non-interest income activities in the Indonesian banking industry

Affiliation of Indonesian audit firms with Big4 and second‐tier audit firms and the cost of debt

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