Loans from my neighbours: East Asian commercial banks, financial integration, and bank default risk

Nguyen, Dung Thuy Thi; Diaz‐Rainey, Ivan; Roberts, Helen; Le, My Loan Phung

doi:10.1016/j.irfa.2021.101659

Cited by 9 publications

(3 citation statements)

References 36 publications

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“…Whereas in well-developed financial sectors, micro-institutions will compete with banks that can easily adjust their credit contracts. In the analysis of financial integration in the microfinance industry, it is necessary to consider bank default risk (Nguyen et al , 2021), credit risk (Bhattacharya et al , 2020) and system risk (Fecht et al , 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

The sustainability and performance of Bank Wakaf Mikro: waqf-based microfinance in Indonesia

Yusgiantoro,

Pamungkas,

Trinugroho

2023

IMEFM

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Purpose This study aims to empirically investigate the sustainability and performance of Bank Wakaf Mikro (hereafter called BWM), which is a waqf-based microfinance in the context of Indonesia. Design/methodology/approach The authors use several model specifications. The specifications mainly take the BWM’s characteristics and governance into account. The authors use a standard-panel data approach with a fixed-effects model as the Hausman test result favors the fixed-effects model. The authors collected monthly data from the Indonesia Financial Services Authority for the period 2018–2020. The detailed data, 39 BWM enabling us to observe the financial, social and governance elements of BWMs. Findings The results reveal interesting findings. The authors find that BWM characteristics, governance and social capital are significant in shaping BWM’s sustainability, performance and risk. Furthermore, the authors find that BWM located in a province with higher lending density has lower performance than those located in a province with lower lending density. The results provide some evidence on how waqf-based microfinance could achieve both economic and social goals. It could provide perspectives for stakeholders in designing microfinance institutions. Originality/value This paper is the first to empirically study the waqf-based microfinance institutions in Indonesia by looking at the determinants of performance and sustainability of those institutions.

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Section: Literature Reviewmentioning

confidence: 99%

The sustainability and performance of Bank Wakaf Mikro: waqf-based microfinance in Indonesia

Yusgiantoro,

Pamungkas,

Trinugroho

2023

IMEFM

View full text Add to dashboard Cite

show abstract

“…Second, we contribute to family firms literature by studying the impact of family firms from the perspective of creditors in East Asia, given that Asian banks have been emerging lenders to the region in recent years beside traditional lenders from the United Kingdom, the United States, and the European Union (Nguyen et al, 2021). This is consistent with the efforts of East Asian countries to promote intraregional financial integration starting with the Chiang Mai Initiative in 2000, the Asian Bond Markets Initiative in 2003, and culminating with the formation of the ASEAN Economic Community in 2015.…”

Section: Introductionmentioning

confidence: 99%

“…This is consistent with the efforts of East Asian countries to promote intraregional financial integration starting with the Chiang Mai Initiative in 2000, the Asian Bond Markets Initiative in 2003, and culminating with the formation of the ASEAN Economic Community in 2015. The share of Asian banks rose from 16% in 2007 to 25% in 2018 (Nguyen et al, 2021).…”

Section: Introductionmentioning

confidence: 99%