The Impact Of Countercyclical Capital Buffer Policy On Credit Growth In Indonesia

Bambang Pramono (), Januar Hafidz (), Justina Adamanti (), Maulana H. Muhajir () and Muhammad S. Alim ()
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Bambang Pramono: Bank Indonesia
Januar Hafidz: Bank Indonesia
Justina Adamanti: Bank Indonesia
Maulana H. Muhajir: Bank Indonesia
Muhammad S. Alim: Bank Indonesia

No WP/4/2015, Working Papers from Bank Indonesia

Abstract: CCB is aimed at reducing the rate of credit procyclicality. This research analyzed the impact of CCB implementation in Indonesia to the growth of bank lending. Using the data of all banks, all BUKU categories, and DSIB, this research analyzed the impact of CCB by using dynamic panel data analysis with the GMM (generalization method of moments) system approach. The research result shows the change of capital regulation, such as CCB has negative and significant impacts in influencing credit growth. Therefore, this research recommends CCB to be implemented in Indonesia because CCB can effectively hold credit growth rate in Indonesia.

Keywords: eCCB; GMM System; Procyclicality (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2015-12
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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http://publication-bi.org/repec/idn/wpaper/WP042015.pdf First version, 2015 (application/pdf)

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