IMF Staff Country Reports

Indonesia : Financial System Stability Assessment-Press Release and Statement by the Executive Director for Indonesia

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

June 12, 2017

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper assesses the stability of Indonesia’s financial system. Since the 2010 Financial Sector Assessment Program, Indonesia’s macroeconomic performance has been robust and the financial system has been stable. Systemic risk is low and the banking system appears generally resilient to severe shocks. Market-based indicators point to relatively low levels of systemic risk. Under severe stress-test scenarios, banks experience sizable credit losses, particularly from corporate exposures, but high capital levels and strong profitability help absorb most of these losses. Many banks face relatively small shortfalls in liquidity stress tests, including in foreign currency, and these appear manageable for Bank Indonesia.

Series:

Country Report No. 17/152

Subject:

Anti-money laundering Bank supervision Banking sector Banks Capital markets Combating the financing of terrorism Economic indicators Financial safety nets Financial sector Financial soundness indicators Financial system stability assessment Indonesia Macroprudential Policy Stress testing