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 language | English |
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| Publication status | Published - 2017 |
| Event | International Conference and Doctoral Colloquium in Finance 2017 - Depok, Indonesia Duration: 1 Jan 2017 → … |
Conference
| Conference | International Conference and Doctoral Colloquium in Finance 2017 |
|---|---|
| Country/Territory | Indonesia |
| City | Depok |
| Period | 1/01/17 → … |
Keywords
- Bank conglomeration; Income diversification; Systemic risk; Franchise Value; Indonesia