Indonesia: Financial System Stability Assessment-Press Release and Statement by the Executive Director for Indonesia
International Monetary Fund
No 2017/152, IMF Staff Country Reports from International Monetary Fund
Abstract:
This paper assesses the stability of Indonesia’s financial system. Since the 2010 Financial Sector Assessment Program, Indonesia’s macroeconomic performance has been robust and the financial system has been stable. Systemic risk is low and the banking system appears generally resilient to severe shocks. Market-based indicators point to relatively low levels of systemic risk. Under severe stress-test scenarios, banks experience sizable credit losses, particularly from corporate exposures, but high capital levels and strong profitability help absorb most of these losses. Many banks face relatively small shortfalls in liquidity stress tests, including in foreign currency, and these appear manageable for Bank Indonesia.
Keywords: ISCR; CR; crisis Law; authority; emergency liquidity assistance framework; OJK; assets equal; BI Law; FX liquidity coverage regulation; Financial sector stability; Commercial banks; Crisis management; Stress testing; Global (search for similar items in EconPapers)
Pages: 59
Date: 2017-06-12
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