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Determinant Of Bank Runs In Indonesia: Bad Luck Or Fundamental?

Author

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  • Iskandar Simorangkir

    (Bank Indonesia)

Abstract

This paper examine the determinant of bank runs in Indonesia that includes economic fundamental, bank performance, and self-fulfilling prophecy factors for all banks either in full sample periods between years 1990 ? 2005 or in banking crisis periods between years 1997 ? 1998. The bank runs determinant uses dynamic panel model from Arrelano-Bond. Estimation result shows that self-fulfilling prophecy, bank monetary performance which is rentability and fixed credit ratio and macroeconomic condition which is economic growth, inflation and real exchange rate influence bank runs in Indonesia. Bank runs determinant in banking crisis between year 1997 ? 1998 also shows a result that is not really different from bank runs determinant during full sample periods between years 1990 - 2005.

Suggested Citation

  • Iskandar Simorangkir, 2011. "Determinant Of Bank Runs In Indonesia: Bad Luck Or Fundamental?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 14(1), pages 1-28, July.
  • Handle: RePEc:idn:journl:v:14:y:2011:i:1g:p:1-28
    DOI: https://doi.org/10.21098/bemp.v14i1.78
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    Cited by:

    1. Rakesh Padhan & K. P. Prabheesh, 2019. "Effectiveness Of Early Warning Models: A Critical Review And New Agenda For Future Direction," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 22(4), pages 457-484, December.
    2. Xuefang Liu & W. Robert J. Alexander & Sajid Anwar, 2018. "Bank Runs in China: Evidence from a Dynamic Panel Model," Arthaniti: Journal of Economic Theory and Practice, , vol. 17(1), pages 15-30, June.

    More about this item

    Keywords

    Bank runs; banking crisis; dynamic panel estimation; Arrelano-Bond; Indonesia;
    All these keywords.

    JEL classification:

    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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