The Concept and Practice of Macroprudential Policy in Indonesia: Islamic and Conventional
This study aims to examine reserve ratio (GWM), and capital buffer toward credit growth; the impact of macroeconomic variables and micro-banking specific factors toward credit growth in Islamic and Conventional Bank. This research using Vector Error Correction Model (VECM). This research finds that macroprudential policy based on GWM instrument positively influence the credit growth of conventional and Islamic banks. From macroeconomic, the credit growth is positively affected by GDP and negatively affected by BI Rate and inflation. Also, credit also affected by deposit funds and default rate ratio. Interestingly, there is a different impact of capital buffer instrument toward credit growth. Capital buffer instrument has negatively affected the financing growth of Islamic banks in Indonesia.
Angeloni, I & E. Faia. (2009). A Tale of Two Policies: Prudential Regulation and Monetary Policy with Fragile Banks. Kiel Working Papers 1569. Kiel Institute for the World Economy.
Adebola, S. S., W. S. W. Yusoff, & J. Dahlan.(2011). An Ardl Approach to The Determinants of NonPerforming Loans In Islamic Banking System In Malaysia. Kuwait Chapter of Arabian Journal of Business and Management Review. 1(2): 20-30.
Ascarya. (2009). Lesson Learned from Repeated Financial Crises: An Islamic Economic Perspective. Bulletin of Monetary Economics and Banking. 12 (1): 27-74.
Bongini, P., L. Laeven. & G. Majnoni. (2002). How Good Is the Market at Assessing Bank Fragility? A Horse Race between Different Indicators. Journal of Banking and Finance. 26 (5): 1011–28.
Borio, C. (2003). Towards a Macroprudential Framework for Financial Supervision and Regulation? BIS Working Paper No. 128, February.
Borio, C. & M. Drehman. (2009). Assessing The Risk of Banking Crises – revisited. BIS Quarterly Review, March: 29-46.
Bordo, M., M.J. Dueker., & D.C. Wheelock. (2000). Aggregate Price Shocks and Financial Instability: An Historical Analysis, NBER Working Paper, No.7652.
Carson, C. S., & S. Ingves. (2003). Financial Soundness Indicators , IMF Board Paper, May Issue.
Cerutti, E., S. Claessens., & L. Laeven. (2015). The Use and Effectiveness of Macroprudential Policies : New Evidence. IMF Working paper, WP/15/61.
Galati, G. & R. Moessner. (2013). Macroprudential policy - a literature review. Journal of Economic Surveys. 27(5): 846–878.
Gauthier, C., Z. He., & M. Souissi. (2010). Understanding Systemic Risk: The Trade-Offs Between Capital, Short-Term Funding and Liquid Asset Holdings. Bank of Canada Working Paper. No. 2010-29.
Goodhart, C., P. Surinand., & D. Tsomocos. (2006). A Model to Analyze Financial Fragility. Economic Journal. 27(1): 107-42.
Imaduddin, M. (2007). Determinants of Banking Credit Default in Indonesia: A Comparative Analysis. Tazkia Islamic Finance and Business Review. Vol. 3 (2): 90-112
Kardar, S. Hafid (201). Macroprudential Surveillance and the Role of Supervisory and Regulatory Authorities. Third Islamic Financial Stability Forum. Amman, Jordan – 31 March 2011
Keys, B, T., Mukherjee, A Seru, & V Vig. (2009). Financial Regulation and Securitization: Evidence from Subprime Loans. Journal of Monetary Economics. 56: 700-20.
Maino, R., P. Imam., & Y. Ojima. (2013). Macroprudential Policies for a Resource Rich Economy: The Case of Mongolia. January, IMF Paper.
Nursechafia & M. Abduh (2014). The Susceptibility of Islamic Banks’ Credit Risk Towards Macroeconomic Variables. Journal of Islamic Finance. 3 (1): 23–37.
Reinhart, C.M. & S.R. Kenneth. (2008). Is The 2007 U.S. Subprime Crisis So Different? An, International Historical Comparison, American Economic Review. 98(2): 339- 344.
Segoviano, M.A. & C.A.E. Goodhart. (2009). Banking Stability Measures. Discussion Paper 627. London: Financial Markets Group, London School of Economics.
Shin, H S. (2009). Reflections on Northern Rock: The Bank Run that Heralded the Global Financial Crisis. Journal of Economic Perspectives. 23: 101-119.
Tomuleasa, I.I. (2015). Macroprudential Policy and Systemic Risk: An Overview. Procedia Economics and Finance. 20(15): 645–653.
Tucker, P. (2009). The Debate on Financial System Resilience: Macroprudential Instruments. Speech at Barclays Annual Lecture in London, 22 October
Turner, P (2000). Procyclicality of regulatory ratios?. Center for Economic Policy Analysis Working Paper No. 13.
Utari, G. D. & Arimurti, T. (2012). A Macro-Prudential Assessment For Indonesia. Chapter 3, Framework for Macro-prudential Policies for Emerging Economies in a Globalized Environment. Kuala Lumpur: The South East Asian Central Banks (SEACEN) Research and Training Centre.
- There are currently no refbacks.