scholarly journals Banking credit restructuring in Indonesia: Quo vadis?

2021 ◽  
Vol 6 (02) ◽  
pp. 47-58
Author(s):  
Dendy Indramawan
Keyword(s):  
Financial Service ◽  
Capital Adequacy ◽  
Financial Accounting ◽  
Net Income ◽  
Financial Service Authority ◽  
Tremendous Amount ◽  
Assets Assessment ◽  
Quo Vadis ◽  
The Impact ◽  
Banking Credit

This research aims to analyze the impact of Coronavirus Disease (Covid-19) on the accounting practices in banks associated with Indonesian Financial Accounting Standards (PSAK) 71 – Financial Instrument, particularly the allowance for impairment losses (CKPN) to respond to the Indonesian Financial Service Authority's Regulation (POJK) Number: 11/POJK.03/2020 concerning credit restructuring program and quality assets assessment. The research methodology is triangulation. This study reveals that the restructuring program helps banks from a significant jump of weak quality credits. Banks need to analyze the recovery rate of debtors as a basis for the stage of PSAK 71 with the Expected Credit Loss approach. The higher the CKPN, the smaller the net income. Besides, a tremendous amount of CKPN will pressure the Capital Adequacy Ratio (CAR). Therefore, shareholders should increase the capital, or the Indonesian Financial Service Authority (OJK) forces the bank(s) into a merger or acquisition.

scholarly journals Analyzing the Impact of Financial Services Authority (OJK) Regulations in Supporting Economy Recovery During Covid-19 Pandemic: Evidence from Indonesia

2021 ◽  
Vol SP (2) ◽  
Author(s):  
Evi Aryati Arbay ◽  
Lusita Astuti Nusantari
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Economic Recovery ◽  
Financial Service Authority ◽  
National Economic ◽  
Keynesian Economic ◽  
The Stability ◽  
The Impact ◽  
Banking Credit

COVID-19 has disrupted economic growth and business conditions globally including in Indonesia. One of the most obvious impacts is in the banking sector as many bank debtors have lost their livelihoods. This situation affects the quality of bank assets and profitability. An increase of non-performing loans experienced by some national banks has decreased the capability to generate optimal profit from bank operations that normally would keep the banks healthy, liquid, solvent, and in a profitable state. To strengthen the stability of Indonesian financial services and support the national economic recovery effort, the Financial Services Authority (OJK) issued several regulations on macroprudential policy relaxation and stimulus provision. The regulations ensure that banks are capable to control the bad credit of the debtors affected by the COVID-19 pandemic. This study aims to analyze the impact of Financial Service Authority Regulations on the quality of banking credit in supporting the Indonesian economic recovery during the COVID-19 pandemic. This is a qualitative study using a critical thinking analysis method to prove the assumption of Keynesian economic theory, which state that in a recession expansionary fiscal policy can stimulate economic activity. The results of this study indicate that the Financial Services Authority regulations have shown an impact in supporting the Indonesian economy recovery efforts amid the COVID-19 pandemic, which can be seen through the stability of the financial system. Further empirical and quantitative studies are needed to confirm the study findings.

SISTEM KOORDINASI ANTARA OTORITAS JASA KEUANGAN (OJK) DENGAN LEMBAGA PENJAMIN SIMPANAN (LPS) DALAM PENANGANAN BANK GAGAL

2017 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
WIWIN WINTARSIH WINDIANTINA
Keyword(s):  
Economic Growth ◽  
Financial Services ◽  
Deposit Insurance ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Service ◽  
Financial Service Authority ◽  
Insurance Agency ◽  
Financial Transactions ◽  
The Impact

ABSTRACTThe banking industry is a dynamic sector along with economic growth, an increasing of complex financial transactions, and the impact from global trade, therefore the presence of an independent institutions is really needed. The Deposit Insurance Agency (LPS) is an institution that is independent, transparent and accountable in implementing its duties and authorities. As an independent agency, accountability is very important to be applied, so that stakeholders aware of what and how LPS implement the functions and duties as mandated by Law No. 24 of 2004 concerning the Deposit Insurance Agency (LPS). Procedurally, if the Financial Services Authority (OJK) indicate a bank that is experiencing liquidity problems, Financial Services Authority (OJK) immediately inform the Bank of Indonesia (BI) to take steps in accordance with BI's authority. In practise, Financial Service Authority (OJK) coordinate withBank of Indonesia (BI) to make regulatory supervision in banking sector. Coordination in handling between failed banks between the Deposit Insurance Agency (LPS) and Financial Services Authority (OJK) is shown by a confirmation from Financial Services Authority (OJK) to the Deposit Insurance Agency (LPS) about troubled banks that are in the restructuring efforts by Financial Services Authority (OJK), then the Deposit Insurance Agency (LPS) investigate the banks in accordance with its functions, duties and responsibilities. The Deposit Insurance Agency (LPS) as an institution that checks condition of banks surely will review and determine whether the troubled banks will be saved or not saved.

scholarly journals The Impact of The Financial Services Authority Regulation on Banking Credit Quality in Improving Indonesia’s Economy During COVID-19 Pandemic: The Critical Thinking Analysis

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Christanto Arief Wahyudi ◽  
Evi Aryati Arbay ◽  
Lusita Astuti Nusantari ◽  
Lusita Astuti Nusantari
Keyword(s):  
Critical Thinking ◽  
Financial Services ◽  
Financial Service Authority ◽  
National Economic ◽  
Business Conditions ◽  
The Stability ◽  
Asset Quality ◽  
The Impact ◽  
Banking Credit

The impact of Covid-19 has impacted the asset quality and profitability of the banks and disrupted economic growth and business conditions globally. In one form of the decline in the economic sector, many members of society, including bank debtors, have lost their livelihoods. The enhancement of non-performing loans experienced by National Banks has resulted in banks losing their ability to generate optimal profit from bank operations so that the bank was always in a healthy, liquid, solvent, and profitable state. The Financial Services Authority issued several Financial Services Authority Regulations during 2020 to make sure that the bank can control bad credit of debtors affected by the Covid-19 outbreak. This study aimed to identify and analyze the impact of Financial Service Authority regulations on the quality of banking credit in improving the Indonesian economy amid the Covid-19 pandemic. This study used a qualitative approach with a critical thinking analysis method. The results of this study concluded that the impact of Financial Services Authority regulations on the quality of banking credit in improving the Indonesian economy amid the Covid-19 pandemic has been shown by the stability of the financial system, which was still well maintained the efforts of the Financial Services Authority to support the national economic recovery policy by Government of Indonesia.

scholarly journals Bank Transparency and Risk Taking: Empirical Evidence from Tunisia

2016 ◽  
Vol 8 (5) ◽  
pp. 111 ◽  
Author(s):  
Raoudha Dhouibi ◽  
Abir Mabrouk ◽  
Emna Rouetbi
Keyword(s):  
Risk Taking ◽  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Banking System ◽  
Market Discipline ◽  
Capital Adequacy ◽  
Financial Accounting ◽  
Necessary Condition ◽  
Basel Accord ◽  
The Impact

<p>An important unresolved issue in finance is the extent to which bank transparency promotes or undermines banking risk-taking. Financial accounting information is an essential component of transparency and a necessary condition for market discipline. This latter can be conceptualized as a market-based incentive scheme with which investors in banking securities penalize banks for greater risk-taking by asking for higher returns on their investments. However, in developing countries, where financial markets are insufficiently developed, the role of market discipline in limiting banks’ risk-taking may be restricted.</p>This paper examines the impact of transparency, as measured by voluntary disclosure of financial information, on the fragility of Tunisian banks. This study is motivated by the decision of the Central Bank of Tunisia to implement the directives of the second Basel Accord to improve the soundness and the safety of the Tunisian banking system. We examine a sample of ten Tunisian banks listed on the Stock Exchange of Tunis over the period 2000-2011. The results show that transparency has no effect on Tunisian banks’ risk-taking. Similarly, the results indicate that the capital adequacy ratio has no effect on the non-performing loans rate. These results may undermine the effectiveness of the guidelines of the Basel Committee agreements to reduce risk-taking by Tunisian banks.

THE EFFECT OF EVENT AND PUBLICITY TOWARDS BRAND AWARENESS ON FINANCIAL SERVICE AUTHORITY (OJK)

2017 ◽  
Vol 2 ◽  
pp. 281-292
Author(s):  
Donant Alananto Iskandar ◽  
Siti Dewi Sri Ratna Sari
Keyword(s):  
Public Relations ◽  
Significant Influence ◽  
Quantitative Method ◽  
Statistical Approach ◽  
Financial Service ◽  
The Other ◽  
Brand Awareness ◽  
Financial Service Authority ◽  
Other Hand ◽  
The People

This study aims to find out the effect of event and publicity towards brand awareness on Indonesia Financial Service Authority, usually called with its abbreviation OJK. The research background is because OJK was newly established as a financial service authority, replacing Bank Indonesia. Therefore, exploring the awareness of the people about the function of OJK is interesting to be a research subject.This method used in this study is the quantitative method with 82 samples as the questionnaire respondents. The population chosen was an OJK’s event held at LPPI and Indonesia Banking School with 122 participants. Validity, reliability, normality, multicollinearity, heteroskedasticity, correlation, determination, regression, hypothesis and ANOVA tests are used as a statistical approach in order to define the outcome of the survey. The results of this study are both event and publicity have a positive and a significant influence towards brand awareness partially and simultaneously. As the conclusion, OJK should continue its programs. On the other hand, OJK should find another public relations strategy to accelerate people awareness about the duties of OJK. Keywords: Event, Publicity, Brand Awareness

What Drives Banking Profitability During Financial Crisis and Political Turmoil? Evidence from the MENA Region

2021 ◽  
pp. 097491012110311
Author(s):  
Salma Zaiane ◽  
Fatma Ben Moussa
Keyword(s):  
Financial Crisis ◽  
Political Instability ◽  
Generalized Method Of Moments ◽  
Bank Performance ◽  
Net Income ◽  
Mena Region ◽  
Factors Affecting ◽  
Mena Countries ◽  
Conventional Banks ◽  
The Impact

The purpose of the study is to identify bank specific, macroeconomic, and stability determinants of both conventional and Islamic bank performance. We also try to identify evidence on the impact of financial crisis and political instability during the Arab Spring (AS) period. The study covers a sample of 123 banks (34 Islamic banks and 89 conventional banks from 13 Middle East and North Africa [MENA] countries) over the period 2000–2013. We use different proxies of performance as dependent variables: return on asset (ROA), return on equity (ROE), net income margin (NIM), and estimate several regressions using the dynamic generalized method of moments. Our results reveal that bank size, asset quality, specialization, and diversification are the major bank specific factors affecting performance of Islamic and conventional banks. Besides, macroeconomic indicators (GDP and inflation) and regulatory quality influence both types of banks differently. Finally, both the financial crisis and political instability negatively affect bank performance.

Technological Innovation and the Agricultural Sustainability

2016 ◽  
Vol 7 (2) ◽  
pp. 1-14
Author(s):  
Rachida Khaled ◽  
Lamine Hammas
Keyword(s):  
Technological Innovation ◽  
Energy Production ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Agricultural Productivity ◽  
Agricultural Sustainability ◽  
Net Income ◽  
Agriculture Sector ◽  
The Impact

The diffusion of the technological innovation can affect the agricultural sector in the three-sided (social, economic and environmental), a hand, it can contribute to solve problems of the agricultural sector: the effects of the climatic changes, the farming exodus and the migration and the problems of poverty and it can improve the agricultural productivity. But on the other hand, he can lead to new problems, such as depletion of energy resources caused by excessive use of energizing technologies, pollution of air and water and the destruction of soil by industrial waste. This paper aims to theoretically and empirically analyze the role of technological innovation in improving agricultural sustainability through the impact of mechanization on agricultural productivity, energy production and net income per capita for a panel of three Maghreb countries (Algeria, Morocco and Tunisia) during the period 1997-2012. By using simultaneous equations, the authors' finding that technological innovation cannot achieve the purpose of sustainable development in the agriculture sector in the Maghreb countries through the negative impact of mechanization and research and development on agricultural productivity.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

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