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Bank liquidity-stress testing and Basel III implementation in Indonesia

Author

Listed:
  • Mohamad Adam
  • Taufik
  • Muhammad Aditya Erfiyan Prathama

    (Faculty of Economics, Sriwijaya University, Palembang, Indonesia
    Faculty of Economics, Sriwijaya University, Palembang, Indonesia
    Faculty of Economics, Sriwijaya University, Palembang, Indonesia)

Abstract

This study analyzes the possibility of the implementation of the Basel III, namely the rules of banking sector. The population analyzed in this study comprises the 120 banks in Indonesia. The result shows that Indonesian banking sector has tremendous value if the Basel III standards is applied in Indonesia. Bank BCA has the lowest values with a score of 8.89 while Bank BRI has the highest value with a score of 9.68. This study concludes that the standard rules of Basel III would be able to be implemented in Indonesia.

Suggested Citation

  • Mohamad Adam & Taufik & Muhammad Aditya Erfiyan Prathama, 2015. "Bank liquidity-stress testing and Basel III implementation in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(1), pages 12-23, April.
    • Handle: RePEc:uii:journl:v:7:y:2015:i:1:p:12-23
    DOI: http://dx.doi.org/10.20885/ejem.vol7.iss1.art2
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Basel III; Liquidity-Stress Testing; banking sector;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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