scholarly journals QUARTERLY OUTLOOK ON MONETARY, BANKING, AND PAYMENT SYSTEM IN INDONESIA: QUARTER I, 2016

2016 ◽  
Vol 18 (4) ◽  
pp. 357-378
Author(s):  
TM Arief Machmud ◽  
Syachman Perdymer ◽  
Muslimin Anwar ◽  
Nurkholisoh Ibnu Aman ◽  
Tri Kurnia Ayu K ◽  
...  
Keyword(s):  
Financial Market ◽  
Government Spending ◽  
Banking System ◽  
Financial System ◽  
Private Investment ◽  
System Stability ◽  
Domestic Economy ◽  
Limited Growth ◽  
The Government ◽  
The Stability

The growth of domestic economy in Indonesia is lower than forecasted in first quarter of 2016.However, the economy is expected to revive and will grow higher in the next quarter, with a well maintained financial system stability. The limited growth of government consumption as well as private investment are the main reason for the slower growth in this quarter, eventhough the government spending on capital goods accelerates. The growth of private consumption remains high with reasonable price movement. With the increase of several commodities’ export, the external performance of export in aggregate also increased. On the other hand, the financial system stability was stable due to viable banking system and better financial market performance. The stability of Rupiah was well maintained, supported by positive expectation on domestic economy and the lower risk of the global financial market.

scholarly journals QUARTERLY OUTLOOK ON MONETARY, BANKING, AND PAYMENT SYSTEM IN INDONESIA: QUARTER IV-2015

2016 ◽  
Vol 18 (3) ◽  
pp. 231-250
Author(s):  
TM Arief Machmud ◽  
Syachman Perdymer ◽  
Muslimin Anwar ◽  
Nurkholisoh Ibnu Aman ◽  
Tri Kurnia Ayu K ◽  
...  
Keyword(s):  
Economic Growth ◽  
Current Account Deficit ◽  
Banking System ◽  
Financial System ◽  
Private Investment ◽  
Fourth Quarter ◽  
System Stability ◽  
Fiscal Stimulus ◽  
The Stability ◽  
A Current

Indonesia ‘s economy in the fourth quarter 2015 was marked by maintained macroeconomic and financial system stability, with a starting economic growth momentum. Macroeconomic stability reflected by lower inflationary pressures, a current account deficit in a healthy level, and manageable pressure on Rupiah. The stability of the financial system remains solid, underpinned by the resilience of the banking system and the relatively stong financial market performance. As the third quarter of 2015, economic growth in the fourth quarter 2015 increased mainly driven by government spending. Looking ahead, economic growth is expected to be higher, with the support of fiscal stimulus, particularly a faster implementation of infrastructure projects, and also with the increase of private investment

scholarly journals ERROR CORRECTION MODEL ANALYSIS OF THE DETERMINANT OF STABILITY OF FINANCIAL SYSTEM IN INDONESIA

2020 ◽  
Vol 1 (2) ◽  
pp. 82-90
Author(s):  
Muhammad Rismawan Ridha
Keyword(s):  
Error Correction ◽  
Banking System ◽  
Financial System ◽  
Error Correction Model ◽  
Economic Openness ◽  
Correction Model ◽  
The Government ◽  
The Stability ◽  
Banking Credit ◽  
The International Monetary Fund

The current condition of economic openness is both an opportunity and a challenge that must be faced wisely by the government. Liberalization and economic integration will have an impact on financial market liberalization, which is highly vulnerable to create crisis in a banking system. This study aims to analyze the factors that influence the stability of the financial system in Indonesia by using the Error Correction Model (ECM). The variables used in this research is Capital Banking Credit sourced from Statistics Indonesia (BPS) and Exchange Rate, Inflation, and Money Supply sourced from the International Monetary Fund (IMF) between 2010 and 2015. The results of the study show that; 1) ECT coefficient which has negative and significant value explains that the model is valid. 2) Inflation significantly affects the stability of the financial system in Indonesia in the long and short term

Analisis Respon Perbankan atas Dana Repatriasi Program Pengampunan Pajak

2017 ◽  
Vol 2 (3) ◽  
pp. 81-99
Author(s):  
Petter Ibnu Christianto
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
Risk Profile ◽  
Third Party ◽  
System Stability ◽  
Tax Base ◽  
Vector Autoregressive ◽  
Tax Amnesty ◽  
The Government

Tax Amnesty Program initiated by the government from 2016 to 2017, showed quite encouraging results. Big asset declaration could increase the future tax base, and asset repatriation is also expected to encourage the growth of the economy in the short term. Incoming repatriation funds, as a result of tax amnesty, are expected to have an impact on the financial system, particularly in the banking sector to add liquidity or third party funds (DPK). The research attempts to show the response of banks in the event of an increase in liquidity in the financial system and how government policies and monetary authorities maintain financial system stability after tax amnesty programs or when liquidity fluctuations in the financial system occur. The dynamic linkage of bank indicators is modeled by the Panel-Vector-Autoregressive (p-VAR) framework. The results of the analysis of the bank's response showed that liquidity changes or liquidity fluctuations in the financial system does not significantly affect to Risk Profile indicators, Profitability indicators, Capital Indicators in the banking system. This conditions shows that the financial system, especially the banking system, has a strong fundamental to reduce the liquidity turmoil in the financial system. Abstrak Program Pengampunan Pajak yang dilaksanakan pemerintah mulai tahun 2016 sampai dengan 2017 menunjukkan hasil yang cukup menggembirakan. Deklarasi aset yang cukup besar dapat meningkatkan basis pajak di masa yang akan datang. Repatriasi aset diharapkan juga mampu mendorong tumbuhnya perekonomian dalam jangka pendek. Dana repatriasi yang masuk sebagai hasil program pengampunan pajak diharapkan memberikan dampak terhadap sistem keuangan, terutama terhadap sektor perbankan sebagai tambahan likuiditas atau dana pihak ketiga (DPK). Kajian ini mencoba menunjukan respon dari perbankan apabila terjadi pertambahan likuiditas dalam sistem keuangan dan bagaimana kebijakan pemerintah dan otoritas moneter dalam mempertahankan stabilitas sistem keuangan paska program pengampunan pajak atau saat terjadi gejolak likuiditas dalam sistem keuangan. Keterkaitan dinamis antar indikator-indikator bank dimodelkan dalam kerangka Panel-Vector-Autoregressive (p-VAR). Analisis terhadap respon perbankan dalam penelitian ini menunjukkan bahwa perubahan likuiditas atau gejolak likuiditas dalam sistem keuangan tidak terlalu berpengaruh terhadap indikator Profil Risiko (Risk Profile), indikator rentabilitas/profitabilitas (Profitability), Indikator permodalan (Capital) dalam sistem perbankan. Hal tersebut menunjukkan bahwa sistem keuangan terutama sistem perbankan mempunyai fundamental yang kuat untuk meredam gejolak likuiditas dalam sistem keuangan.

The Financial System Stability: The Essence, Vulnerability, Ways to Provide

2021 ◽  
pp. 81-90
Author(s):  
Yurii Lupenko ◽  
◽  
Yurii Radionov ◽  
◽  
◽  
...  
Keyword(s):  
Budget Deficit ◽  
Financial System ◽  
Decisive Role ◽  
The State ◽  
System Stability ◽  
State Budget ◽  
Internal Factors ◽  
Endogenous Factors ◽  
The Government ◽  
The Stability

The state financial system must function smoothly and respond promptly to destabilizing exogenous and endogenous factors that can arise at any time. Therefore, ensuring the financial system's stability and improving its mechanisms is an important component of public policy. The purpose of the article is to reveal the essence of the financial system's stability, identify internal factors of the financial vulnerability of Ukraine that may affect the effectiveness of the country's financial system, and find ways to overcome them. The content of the concept of "stability of the financial system" is revealed. It is established that the use of different terminology indicates the complexity and, at the same time, the versatility of this term. According to international experience, the country's central bank has a decisive role in assessing the stability of the financial system; in Ukraine, this function is performed by the National Bank of Ukraine. It was found that inefficient use of budget funds is one of the key factors in the financial system's vulnerability. The state of execution of the State Budget of Ukraine in 2020 is analyzed. It has been established that over the last decade, the budget has been executed with a deficit, and the existence of a significant budget deficit leads to a movement in the “debt spiral”. The Government borrows a significant amount of money to implement the budget, and therefore it is becoming increasingly difficult to attract them on reasonable terms. Failure to receive the funds leads to late spending. Thus, the budget deficit, public debt, and inefficient use of budget funds are the internal factors that increase the financial system's vulnerability and undermine its stability.

scholarly journals Stabilność systemu finansowego Unii Europejskiej

Studia BAS ◽  
2021 ◽  
Vol 3 (67) ◽  
pp. 87-116
Author(s):  
Małgorzata Mikita
Keyword(s):  
Financial Stability ◽  
Stock Price ◽  
Banking System ◽  
Financial System ◽  
Price Volatility ◽  
System Stability ◽  
Volatility Index ◽  
Degree Of Stability ◽  
The Stability ◽  
The Eu

The aim of the article is to present activities undertaken at the EU level to ensure financial stability, and to assess the degree of stability of the EU financial system on the basis of selected indicators. The first part of the article introduces the concept of financial system stability and describes its importance in the modern economy and the methods of estimating the stability of the financial system. The second part of the article is devoted to the presentation of activities undertaken by the EU to increase the stability of the financial system, and the assessment of financial stability on the basis of two indicators: the Z-score indicator, used to assess the stability of the banking system, and the Stock Price Volatility index, showing the stability of the capital market.

scholarly journals Debt-Sale Securities as a Monetary Policy Instrument in the Islamic Banking System of Iran

2021 ◽  
pp. 31-40
Author(s):  
Hossein Meisamy
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Market ◽  
Banking System ◽  
Financial System ◽  
Policy Instrument ◽  
Islamic Banking ◽  
Private Banks ◽  
The Government ◽  
First Time

This paper discusses the legitimacy of securitizing the central bank receivables from the government and banking system in the Iranian financial market and making use of this instrument to conduct monetary policy. Ijtihad or independent jurisprudential reasoning based on Imamiah Fiqh (prevailing in the Iranian Islamic banking system), is used as paper methodology. The results show that considering the jurisprudential ‘ownership unity’ between the central bank, the government, and governmental banks in the Iranian banking system, securitizing the central bank receivables from the government or the governmental banks is not legitimate and not Shariah-compliant. Nevertheless, it is possible to issue debt-sale securities based on the debts of private banks to the central bank. Therefore, issuing debt-sale securities based on central bank receivables from the private banks can be considered a suitable instrument for conducting Shariah-compliant monetary policy in the Islamic banking system of Iran. This paper discusses for the first time the idea of issuing debt-sale securities as a monetary policy instrument in the Iranian financial system. Besides, the analysis is based on the Imamiah School of Fiqh, which is also new.

scholarly journals Deposit flows and structure in Serbia

Bankarstvo ◽  
2020 ◽  
Vol 49 (4) ◽  
pp. 68-87
Author(s):  
Milena Lazić ◽  
Ksenija Zorčić
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Banking Regulation ◽  
The Stability ◽  
The Global Financial Crisis ◽  
Deposit Guarantee Schemes

Having drawn attention to the existing banking regulation issues, the Global Financial Crisis also raised awareness of the importance of depositors' confidence for the stability of the financial system, and brought the role and significance of the deposit guarantee schemes to the fore. Serbian economy started experiencing its effects in Q4 2008, in parallel with the global spreading of the crisis. This paper focuses on the fluctuations in deposit levels and structure in the Serbian banking system, between 2008 and 2019. It also aims to underscore the importance and development perspectives of the Serbian deposit guarantee scheme.

Transformation of the Ecuadorian financial system: regulation and response

2015 ◽  
Vol 23 (1) ◽  
pp. 84-102 ◽  
Author(s):  
Luisa Ana Unda ◽  
Julie Margret
Keyword(s):  
Interest Rates ◽  
Development Strategy ◽  
Initial Conditions ◽  
Political Process ◽  
Banking System ◽  
Financial System ◽  
Reform Process ◽  
Motivating Factors ◽  
Content Type ◽  
The Government

Purpose – The aim of this study is to analyse the transformation of the Ecuadorian financial system using the regulatory dialectic approach (Kane, 1977). This research examines the initial conditions and motivating factors of the reform process, as well as the interplay between government and bankers during the period 2007-2012. Design/methodology/approach – Kane’s regulatory dialectic suggests that regulation of financial institutions is a series of cyclical interactions between opposing political and economic forces. Three main stages are identified: thesis (measures and regulatory actions), antithesis (avoidance/lobby against those reforms) and synthesis (adaptive reregulation resulting from the interaction between interest groups). Findings – Since 2007, the government focused on regulating interest rates, developing a liquidity fund for banking emergencies, increasing taxation and restricting international capital flows. These government initiatives took place against a background of conflicting interests. Private bankers opposed the majority regarding them as burdensome new rules, rather than enlightened reforms. Publicly, these reforms as intended by the government were seemingly supported. Finally through the political process, they were approved. To date, these reforms have strengthened the financial system, produced encouraging social policy results and placed the financial sector to serve the government’s development strategy. Originality/value – Using Kane’s notion of regulatory dialectic, we explain the process of financial reform in Ecuador as part of a cyclical interaction between opposing forces. Drawing on this framework enabled insight into the nature of government intervention. Hence, we show how that intervention affected the growth, development and structure of the banking system.

scholarly journals Information and Statistical Efforts of Selected Safety Network Institutions in the Area of Financial System Stability

2019 ◽  
pp. 143-157
Author(s):  
Piotr Komorowski ◽  
Dariusz Filip
Keyword(s):  
Public Good ◽  
Statistical Data ◽  
Financial System ◽  
System Stability ◽  
Main Role ◽  
Overall Stability ◽  
System Information ◽  
The Stability ◽  
The Impact

Financial system stability is considered a public good. The main role of the financial safety network is to stabilise the system. Information and statistical activities of institutions which belong to the safety network are the tools which may improve the stability. We need to stress that most decisions are based on information, in particular decisions on investment or speculation, hence by providing information and statistical data these institutions indirectly enhance the overall stability of the system. An overview and analysis of selected studies addressing financial system stability helped the authors draw theoret- ical and practical conclusions as to the stability itself and the impact of information and statistics upon its improvement.

scholarly journals Combating crime in the banking sector as a method for ensuring its stability (evidence from Ukraine)

2020 ◽  
Vol 15 (1) ◽  
pp. 143-157
Author(s):  
Alyona Klochko ◽  
Oksana Kvasha ◽  
Zoia Zahynei ◽  
Mykola Logvinenko ◽  
Mykola Kurylo
Keyword(s):  
Banking Sector ◽  
Effective Interaction ◽  
Legal Aspect ◽  
Banking System ◽  
System Stability ◽  
Law Enforcement Agencies ◽  
Public Authorities ◽  
Registration Number ◽  
The Stability ◽  
State Registration

An effective system for combating banking crimes can ensure the stability of the Ukrainian banking sector. Developing such a system requires an analysis of public policy institutional instruments to counter threats to the banking system stability. The article proposes the crime counteraction concept for the Ukrainian banking system based on the analysis of scientific articles dealing with the issue, relevant provisions of legal acts and on the study of functions of law enforcement agencies, individual executive bodies, central public authorities, state collegial bodies, territorial NBU departments, Ukrainian banks and their branches, the Deposit Guarantee Fund, international institutions, and bank clients.It has been established that the stability of the Ukrainian banking system can be ensured by effective interaction of all actors in combating crime in the banking business. Overlapping of their functions and some conflict rules negatively affect ensuring the banking system stability by entities engaged in banking crime counteraction. Therefore, an algorithm of cooperation between relevant counteraction entities should be developed and reflected in the Banking and Financial Security Strategy on the legislative level. Optimization of statistical reporting on crime in the Ukrainian banking sector in a more informative format requires data on both individual types of banking crimes and on the persons who commit them. As part of the work of the National Bank of Ukraine’s Public Council, it is necessary to organize regional public councils and ensure cooperation between bank clients and local banking institutions. It is assumed that the development of effective mechanisms for protecting rights and legitimate interests of depositors and creditors, as well as combating criminalization in the banking sector will be the main functions of these regional public councils. The relevant innovations require amendments to the Regulation on the NBU Public Council. AcknowledgmentThe article was prepared as part of a project for young scientists of Ukraine in 2017 (state registration number – 0117 U 006531), Improving the Legislation of Ukraine Regarding the Protection of Banking Activities in the Context of European Integration: Economic and Legal Aspect, by Alyona M. Klochko, Ph.D. (Law), Sumy National Agrarian University, Head of the Chair of International Relations.

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