Wahyoe Soedarmono - Academia.edu (original) (raw)

Uploads

Papers by Wahyoe Soedarmono

Daftar Isi : Analisis Triwulanan : Perkembangan Moneter, Perbankan dan Sistem Pembayaran Triwulan... more Daftar Isi : Analisis Triwulanan : Perkembangan Moneter, Perbankan dan Sistem Pembayaran Triwulan III-2011 Tim Penulis Laporan Triwulanan, Bank Indonesia Apakah Perkembangan Finansial Meredam atau Memperbesar Dampak Suatu Kejutan? Meily Ika Permata, Ibrahim, Hidayah Dhini Ari Bank Capital Inflows, institutional Development and Risk : Evidence From Publicly - Trade Banks In Asia Wahyoe Soedarmono Relative Effectiveness of Indonesian Policy Choices During Financial Crisis Tumpak Silalhi and Tevy Chawwa

SSRN Electronic Journal, 2017

Publications d'histoire économique et sociale internationale, 2016

Research in International Business and Finance, 2020

Abstract In this paper, we assess whether the link between charter value and systemic risk in ban... more Abstract In this paper, we assess whether the link between charter value and systemic risk in banking is affected by credit information sharing at the country level. Using a sample of Asian listed banks, we document that banks with higher charter value exhibit lower systemic risk because these banks hold more capital. Nevertheless, we find that the self-disciplining role of charter value in banking is more pronounced for countries with lower depth of credit information sharing. Specifically, our findings also reveal that higher charter value alleviates systemic risk and increases capitalization, particularly in countries with lower quality of private credit bureaus. These findings suggest that higher charter value can be detrimental for financial stability due to an increase in bank systemic risk, particularly when private credit bureaus are of better quality. In order to overcome bank systemic risk, this paper advocates the importance of strengthening bank competition to limit charter value, in addition to promoting the development of private credit bureaus.

This paper extends prior literature on the link between consolidation and stability in banking us... more This paper extends prior literature on the link between consolidation and stability in banking using a single country setting. From a sample of Indonesian commercial banks over the 2010-2015 time span, we construct the Lerner index as a measure of bank market power due to consolidation. Our empirical results document that higher bank market power tends to reduce insolvency risk and increase capital ratios. A deeper analysis however reveals that higher market power is detrimental for financial stability in state-owned banks and small private-owned banks. We therefore highlight that although consolidation among state-owned banks reduces cost inefficiency as in Hadad et al. (2013), further efforts to reduce state-owned banks' market power are necessary after consolidation. This paper also suggests that strengthening market power in large private-owned banks, but encouraging competition in small private-owned banks to reduce market power, are of particular importance for financial s...

Jurnal Ekonomi Malaysia, 2020

We model and empirically estimate the relationship of ordinal scaled dependent variable: firm fin... more We model and empirically estimate the relationship of ordinal scaled dependent variable: firm financing choice with business sophistication, revenue diversification and labor relationship using Indonesian data. We use controlling variables derived from Trade off Theory and Pecking Order Theory literature. We then elaborate the baseline model to include additional categoric variables of location and ownership, besides the interaction terms. The dataset is constructed from World Bank Enterprise Survey Year 2015 and Generalized logistic-partial proportional odds regression is employed as an estimator. We find that better business sophistication leads to greater acceptance to financing from outsiders and more diversified firms tend to prefer external financing. Finally, a better labor relationship corresponds to a greater preference for internal financing.

Jurnal Keuangan dan Perbankan

Journal of Islamic Accounting and Business Research

Purpose This study aims to test whether loan loss provisions in Islamic banks is procyclical by e... more Purpose This study aims to test whether loan loss provisions in Islamic banks is procyclical by explicitly examining the link between non-discretionary provisions and loan growth. In the next stage, this paper tests whether the link between non-discretionary provisions and loan growth is conditional on bank capitalization and lending. This is to identify whether bank-specific factors affect the procyclicality of non-discretionary provisions and whether such procyclicality can be explained by income smoothing in banks with different capitalization and loan profiles. Design/methodology/approach This study is conducted in four stages. The first stage identifies the determinants of loan loss provisions. The second stage investigates whether income smoothing is affected by capitalization and lending activities. In the third stage, the link between non-discretionary provisions and loan growth is examined. In the fourth stage, this paper tests whether the link between non-discretionary pro...

Research in International Business and Finance

This paper investigates the interplay of abnormal loan growth, credit reporting system and system... more This paper investigates the interplay of abnormal loan growth, credit reporting system and systemic risk in banking. Based on a sample of publicly traded banks in Asia from 1998 to 2012, higher abnormal loan growth leads to higher systemic risk one year ahead. A closer investigation further suggests that better credit information coverage and private credit bureaus can stem the buildup of bank systemic risk one year ahead due to higher abnormal loan growth. Eventually, this paper offers some supports to strengthen macro-prudential regulation to limit abnormal loan growth. This paper also advocates the importance of strengthening credit information coverage and the role of private credit bureaus in Asian countries to mitigate the negative impact of abnormal loan growth on bank systemic stability.

Buletin Ekonomi Moneter dan Perbankan, 2012

This paper examines the relationship between bank capital inflows and financial stability. Using ... more This paper examines the relationship between bank capital inflows and financial stability. Using a sample of publicly-traded commercial banks in Asia over the 2002-2008 period, our empirical results show that higher banking inflows measured by the share of foreign liabilities in banking reduces systematic risk, but increases bank-specific risk and total risk. A deeper investigation further suggests that an increase in total risk and bank-specific risk is driven by strong institutional development. Specifically, higher foreign liabilities in banking exacerbate bank-specific risk and total risk in countries with greater economic freedom. Hence, the reinforcement of prudential regulations is necessary to overcome bank-specific risk and total risk, particularly when the countries move to a more liberal economic environment.JEL Classification : G21, G28, G38Keywords : Banking Globalization, Economic Freedom, Capital Market Measures of Risk

Buletin Ekonomi Moneter dan Perbankan, 2014

This paper attempts to provide evidence whether or not the unification of regulatory institutions... more This paper attempts to provide evidence whether or not the unification of regulatory institutions for different types of financial sector creates challenges for financial stability. From a sample of 91 countries that provide data on the financial unification index and the central bank involvement index, the empirical results reveal that higher financial unification index or the convergence toward a single supervisory institution outside the central bank, in order to control three different sectors (banking, insurance, and securities), is detrimental for financial stability. However, this finding only holds for developed countries, but dissapears for less developed countries. In parallel, the central bank involvement in financial sector supervision has no impact on financial stability in both developed and less developed countries. Keywords: Supervisory Regimes, Financial Sectors, Financial Stability JEL Classification: G18, G21, G28

SSRN Electronic Journal, 2000