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The Impact Of Countercyclical Capital Buffer Policy On Credit Growth In Indonesia

Author

Listed:
  • Bambang Pramono

    (Bank Indonesia)

  • Januar Hafidz

    (Bank Indonesia)

  • Justina Adamanti

    (Bank Indonesia)

  • Maulana Harris Muhajir

    (Bank Indonesia)

  • Muhammad Sahirul Alim

    (Bank Indonesia)

Abstract

CCB is aimed at reducing the rate of credit procyclicality. This research analyzed the impact of CCB implementation in Indonesia to the growth of bank lending. Using the data of all banks, all BUKU categories, and DSIB, this research analyzed the impact of CCB by using dynamic panel data analysis with the GMM (generalization method of moments) system approach. The research result shows the change of capital regulation, such as CCB has negative and significant impacts in influencing credit growth. Therefore, this research recommends CCB to be implemented in Indonesia because CCB can effectively hold credit growth rate in Indonesia.

Suggested Citation

  • Bambang Pramono & Januar Hafidz & Justina Adamanti & Maulana Harris Muhajir & Muhammad Sahirul Alim, 2015. "The Impact Of Countercyclical Capital Buffer Policy On Credit Growth In Indonesia," Working Papers WP/4/2015, Bank Indonesia.
    • Handle: RePEc:idn:wpaper:wp042015
    as

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    File URL: http://publication-bi.org/repec/idn/wpaper/WP042015.pdf
    File Function: First version, 2015
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    Citations

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    Cited by:

    1. Iwegbu, Onyebuchi & Odior, Ernest S.O., 2019. "Macro-Prudential policy instruments, pro-cyclicality of capital and bank lending in Nigeria: From post-global financial crisis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(3), pages 205-227.
    2. Kakati Shivam & Roy Arup, 2021. "Financial sustainability: An annotated bibliography," Economics and Business Review, Sciendo, vol. 7(3), pages 35-60, September.
    3. Yıldırım Furkan, 2021. "Analysis of the relationship between countercyclical capital buffer and performance and risk indicators of the banking sector," Economics and Business Review, Sciendo, vol. 7(3), pages 103-123, September.

    More about this item

    Keywords

    eCCB; GMM System; Procyclicality;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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