IMF Staff Country Reports

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

June 12, 2017

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Indonesia: Financial System Stability Assessment-Press Release and Statement by the Executive Director for Indonesia, (USA: International Monetary Fund, 2017) accessed November 21, 2024

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.

Subject: Banking, Commercial banks, Crisis management, Financial crises, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Financial sector stability, Stress testing

Keywords: Assets equal, Authority, BI Law, Commercial banks, CR, Crisis Law, Crisis management, Emergency liquidity assistance framework, Financial sector stability, FX liquidity coverage regulation, Global, ISCR, OJK, Stress testing

Publication Details

  • Pages:

    59

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Country Report No. 2017/152

  • Stock No:

    1IDNEA2017003

  • ISBN:

    9781484303559

  • ISSN:

    1934-7685