In the first part, this paper aims to examine how explicit deposit insurance coverage affects bank stability using the data from the Indonesian commercial banking industry, which offers a unique setting of natural experiment for this purpose. In the second and third parts, this paper studies how...

This paper investigates whether higher financial literacy boosts demand for financial services in Indonesia. Our empirical results document that individuals with higher financial literacy are associated with higher demand for bank credit. However, the positive impact of financial literacy on...

Using monthly data of 99 commercial banks during the period 2004-2007, we investigate whether capital buffer can be explained by bank-specific, business cycle, regulatory and institutional variables. In regards to the business cycle, we find evidence that bank capital buffer is procyclical....

This paper investigates the finance-growth nexus where bank credit is decomposed into investment, consumption, and working capital credit. From a panel dataset of provinces in Indonesia, it documents that higher financial development measured by financial deepening and financial intermediation...

This paper extends prior literature on the link between consolidation and stability in banking using a single country setting. From a sample of Indonesian commercial banks over the 2010-2015 time span, our empirical results show that higher bank market power is associated with lower insolvency...

Using a survey of 41,862 manufacturing firms in Indonesia from 2004 through 2013, this study documents that firms in provinces with deeper financial infrastructure exhibit better performance in general. A closer investigation however highlights that such findings are more pronounced for firms...