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 diversificationâ€™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 bankâ€™s group on systemic risk.
|Publication status||Published - 2017|
|Event||International Conference and Doctoral Colloquium in Finance 2017 - Depok, Indonesia|
Duration: 1 Jan 2017 → …
|Conference||International Conference and Doctoral Colloquium in Finance 2017|
|Period||1/01/17 → …|
- Bank conglomeration; Income diversification; Systemic risk; Franchise Value; Indonesia