Analysis of the effect of non-bank sector investment to bank credit allocation

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This paper analyzes the changes in the allocation of corporate loans by banks due to capital flows in the form of direct investment and portfolio investment in the corporate sector. The analysis used macroeconomic data, bank concentration rate data, bank leverage level, bank efficiency level, and banking credit allocation data of various countries. The analysis will be linked to the characteristics of the country based on the degree of globalization of its financial system. The analysis used data panel to capture the dynamics and endogeneity in the banking credit. The result of the research shows the negative influence of capital inflows to corporations on the allocation of bank credit and the dynamic consistent impact of bank credit allocation.

Original languageEnglish
Title of host publicationChallenges of the Global Economy
Subtitle of host publicationSome Indonesian Issues
PublisherNova Science Publishers, Inc.
Pages271-285
Number of pages15
ISBN (Electronic)9781536165357
ISBN (Print)9781536162769
Publication statusPublished - 1 Jan 2019

Keywords

  • Bank concentration
  • Bank efficiency
  • Bank leverage
  • Credit
  • Dana panel dynamics
  • Generalized methods of moments

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