Economic uncertainty on bank stability in Indonesia

Berto, Andre (2024) Economic uncertainty on bank stability in Indonesia. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

The research measures the economic uncertainty variable using World Uncertainty Index (WUI) and uses three strains of bank risk (bank default risk, bank leverage risk, and bank portfolio risk) to assess its becoming effect on the stability of Indonesia banks. In an analysis based on panel data and a combination of fixed and random effects models, the study aims to reflect how world economic uncertainty influences bank stability in Indonesia. The results however indicate that economic uncertainty shows no influence towards all bank risk aspects, which consists of default risk, leverage risk, and portfolio risk, based on the 5 percent significance level. This result implies that Indonesian banks are generally quite resistant from the direct impact of economic uncertainty relating to credit default risk, leverage risk, and portfolio risk. This research paper also takes into consideration the structural characteristics of banks that would be important predictors of this bank stability risk in these dimensions—specifically, loan share, income diversification, liquidity and commission-based income.
Item Type: Thesis (Bachelor)
Creators:
Creators
NIM
Email
ORCID
Berto, Andre
NIM01013210027
andreberto.tsh@gmail.com
UNSPECIFIED
Contributors:
Contribution
Contributors
NIDN/NIDK
Email
Thesis advisor
Handoko, Liza
NIDN0315019003
liza.handoko@uph.edu
Uncontrolled Keywords: economic uncertainty; bank stability; world uncertainty index; bank risks.
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: University Subject > Current > Faculty/School - UPH Karawaci > Business School > Management
Current > Faculty/School - UPH Karawaci > Business School > Management
Depositing User: Andre Berto
Date Deposited: 14 Jan 2025 11:30
Last Modified: 14 Jan 2025 11:30
URI: http://repository.uph.edu/id/eprint/66374

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