Systemically important financial institutions (SIFI) in Indonesian banking system

Zaafri Ananto Husodo and Daniel Wojtyla

International Journal of Monetary Economics and Finance, 2018, vol. 11, issue 4, 327-344

Abstract: We study the Indonesian Banking System, as one of the emerging economies with significant numbers of bank employing component expected shortfall (CES) as a market-based systemic risk measurement. The measure is a hybrid one that combines too big to fail and too interconnected to fail paradigms. Our result shows that systemic risk in Indonesian Banking System is highly concentrated, dominated by five big banks which contributes to more than 80% of the total risk of the banking system. Moreover, the concentration increased as the financial turmoil waived the whole banking system in September 2008. As a robustness test, this research uses various weighting scheme using total assets, total equities, and total loans as weights of the firm. The result show relatively consistent systemically important financial institutions (SIFI) cluster compared to market capitalisation weight.

Keywords: systemic risk; SIFI; systemically important financial institutions; CES; component expected shortfall; Indonesian banking industry. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=95741 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmefi:v:11:y:2018:i:4:p:327-344

Access Statistics for this article

More articles in International Journal of Monetary Economics and Finance from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().