Systemic risk, bankâ€TMs capital buffer, and leverage
| Main Author: | Wibowo, Buddi |
|---|---|
| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Universitas Islam Indonesia
, 2017
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| Subjects: | |
| Online Access: |
https://journal.uii.ac.id/JEP/article/view/7288 https://journal.uii.ac.id/JEP/article/view/7288/7395 |
Daftar Isi:
- This paper measures individual bankâ€TMs impact on banking systemic risk and examines the effect of individual bankâ€TMs capital buffer and leverage to bankâ€TMs systemic risk impact in Indonesia during 2010-2014. Using Mertonâ€TMs distance-to-default to measure systemic risk, the study shows a significant negative relationship between bankâ€TMs capital buffer and systemic risk. High capital buffer tends to lowering bankâ€TMs impact on systemic risk. Bankâ€TMs leverage level also influences its contribution to systemic risk, even though the impact is much lower compared to that of capital buffer impact.