The Impact of Conglomeration on Systemic Risk of Banking Sector in Indonesia

Bima Baskara Sakti, Rofikoh Rokhim

Research output: Contribution to conferencePaperpeer-review

Abstract

The 2008 crisis show the impotance of financial conglomeration impact on systemic risk. There are 20 bank used as a group of conglomerates and non-conglomerates banking operating in Indonesia from 2000 to 2015. Using the panel data of 320 observation in Indonesia, we analyze bank revenue diversification’s impact on systemic risk. The results indicate that diversification had positive and significant impact on non-conglomerates banking, but on conglomerate bank were not. Crisis period are not significantly related to bank systemic risk, both of conglomerates and non-conglomerates group. Thus, regulator should consider the impact of the two bank’s group on systemic risk.
Original languageEnglish
Publication statusPublished - 2017
EventInternational Conference and Doctoral Colloquium in Finance 2017 - Depok, Indonesia
Duration: 1 Jan 2017 → …

Conference

ConferenceInternational Conference and Doctoral Colloquium in Finance 2017
CountryIndonesia
CityDepok
Period1/01/17 → …

Keywords

  • Bank conglomeration; Income diversification; Systemic risk; Franchise Value; Indonesia

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