Bank Credit in Financial Cycle during COVID-19 Pandemic: Dilemma from Indonesia
How to cite (SHIRKAH) :
Abdelkafi, I., Loukil, S., & Romdhane, Y. (2022). Economic uncertainty during COVID-19 pandemic in Latin America and Asia. Journal of the Knowledge Economy, 1-20. https://doi.org/10.1007/s13132-021-00889-5
Abuka, C., Alinda, R. K., Minoiu, M. C., Peydró, J. L., & Presbitero, A. (2015). Monetary policy in a developing country: loan applications and real effects. International Monetary Fund. https://www.imf.org/external/pubs/ft/wp/2015/wp15270.pdf
Agénor, P.R., & Pereira da Silva, L. A. (2013). Inflation targeting and financial stability: A perspective from the developing world. Working Paper Series, 324(September), 1–116. http://www.bc.gov.br/pec/wps/ingl/wps324.pdf
Ajello, A. (2016). Financial intermediation, investment dynamics, and business cycle fluctuations. American Economic Review, 106(8), 2256–2303. https://doi.org/10.1257/aer.20120079
Albulescu, C. T., Goyeau, D., & Pépin, D. (2013). Financial instability and ECB monetary policy. Economics Bulletin, 33(1), 388–400. https://www.researchgate.net/publication/235632884_Financial_instability_and_ECB_monetary_policy
Altig, D., Baker, S., Barrero, J. M., Bloom, N., Bunn, P., Chen, S., ... & Thwaites, G. (2020). Economic uncertainty before and during the COVID-19 pandemic. Journal of Public Economics, 191, 104274. https://doi.org/10.1016%2Fj.jpubeco.2020.104274
Awad, I. M., & Al Karaki, M. S. (2019). The impact of bank lending on Palestine economic growth: an econometric analysis of time series data. Financial Innovation, 5(1), 1-21. https://doi.org/10.1186/s40854-019-0130-8
Bank Indonesia. (2019). Penguatan Intermediasi di tengah ketidakpastian ekonomi global. Departemen Kebijakan Makroprudensial. https://www.bi.go.id/id/edukasi/Documents/Mengupas-Kebijakan-Makroprudensial.pdf
Basmar, E., Campbell III, C., & Basmar, E. (2019, March). The effect of interest rates on the financial cycle in Indonesia. In First International Conference on Materials Engineering and Management-Management Section (ICMEMm 2018) (pp. 7-10). Atlantis Press. https://dx.doi.org/10.2991/icmemm-18.2019.2
Basmar, E., Campbell-III, C. M., Basmar, E., & Suhendra, S. (2022). The climate changes in banking credit to the financial cycle during the Covid-19 Pandemic in Indonesia. Jurnal Manajemen Bisnis, 9(1), 173-182. https://doi.org/10.56750/jmb.v9i1.76
Basmar, E., Muhammad, Y. Z., & Marsuki, A. H. (2017). Do the bank credit cause the financial crisis in Indonesia. Scientific Research Journal, 5, 36-38. http://www.scirj.org/papers-1017/scirj-P1017446.pdf
Bernanke, B. S., Gertler, M., & Gilchrist, S. (1999). The financial accelerator in a quantitative business cycle framework. Handbook of macroeconomics, 1, 1341-1393. https://doi.org/10.1016/S1574-0048(99)10034-X
Borio, C. (2012). The financial cycle and macroeconomics: What have we learnt? BIS Working Papers No 395. ISSN 1682-7678 (online). BIS Working Papers, 395. https://www.bis.org/publ/work395.pdf
Bourkhis, K., & Nabi, M. S. (2013). Islamic and conventional banks' soundness during the 2007–2008 financial crisis. Review of Financial economics, 22(2), 68-77. https://www.sciencedirect.com/science/article/pii/S1058330013000177
Caldara, D., Fuentes-Albero, C., Gilchrist, S., & Zakrajsek, E. (2016). The Macroeconomic Impact of Financial and Uncertainty Shocks. International Finance Discussion Paper, 2016(1166), 1–41. https://doi.org/10.17016/ifdp.2016.1166
Céspedes, L. F., Chang, R., & Velasco, A. (2013). Dollarization of Liabilities, Net Worth Effects, and Optimal Monetary Policy. In Preventing Currency Crises in Emerging Markets (Issue January). https://doi.org/10.7208/chicago/9780226185057.003.0013
Chen, Q., Filardo, A., He, D., & Zhu, F. (2015). Financial crisis, US Unconventional monetary policy and international spillovers. In IMF Working Papers (Vol. 15, Issue 85). https://doi.org/10.5089/9781475520668.001
Chen, T., Huang, Y., Lin, C., & Sheng, Z. (2022). Finance and firm volatility: Evidence from small business lending in China. Management Science, 68(3), 2226-2249. https://doi.org/10.1287/mnsc.2020.3942
Choi, S. Y. (2020). Industry volatility and economic uncertainty due to the COVID-19 pandemic: Evidence from wavelet coherence analysis. Finance Research Letters, 37, 101783. https://doi.org/10.1016/j.frl.2020.101783
Claessens, S., Kose, M. A., & Terrones, M. E. (2012). How do business and financial cycles interact?. Journal of International economics, 87(1), 178-190. http://dx.doi.org/10.1016/j.jinteco.2011.11.008
Dell’Ariccia, G., Kadyrzhanova, D., Minoiu, C., & Ratnovski, L. (2021). Bank lending in the knowledge economy. The Review of Financial Studies, 34(10), 5036-5076. https://academic.oup.com/rfs/article/34/10/5036/6055563
El Karfi, K., & Mentagui, D. (2020). Monetary policy and financial stability. Journal of Advanced Research in Dynamical and Control Systems, 12(5 Special Issue), 1453–1459. https://doi.org/10.5373/JARDCS/V12SP5/20201905
Erdem, M., & Tsatsaronis, K. (2013). Financial conditions and economic activity: a statistical approach. BIS Quarterly Review, March, 37–51. https://www.bis.org/publ/qtrpdf/r_qt1303f.htm
Gaies, B., & Nabi, M. S. (2021). Banking crises and economic growth in developing countries: Why privileging foreign direct investment over external debt?. Bulletin of Economic Research, 73(4), 736-761. http://dx.doi.org/10.1111/boer.12271
Hafstead, M., & Smith, J. (2012). Financial shocks, bank intermediation, and monetary policy in a DSGE model. Unpublished Manucript, 9, 1-77. http://www.rff.org/Documents/HafsteadSmith_September2012.pdf
Harun, C. A., Taruna, A. A., Nattan, R. R., & Surjaningsih, N. (2014). Financial cycle of Indonesia – Potential forward looking. BI Working Paper, 9, 1–44. http://publication-bi.org/repec/idn/wpaper/WP092014.pdf
Huljak, I., Martin, R., Moccero, D., & Pancaro, C. (2022). Do non-performing loans matter for bank lending and the business cycle in euro area countries?. Journal of Applied Economics, 25(1), 1050-1080. http://publication-bi.org/repec/idn/wpaper/WP092014.pdf
Jermann, U., & Quadrini, V. (2012). Macroeconomic effects of financial shocks. American Economic Review, 102(1), 238–271. https://doi.org/10.1257/aer.102.1.238
Khan, M. S., Khan, I., Bhabha, J. I., Qureshi, Q. A., & Khan, N. A. Q. R. (2015). The role of financial institutions and the economic growth: A literature review. Indicator, 7(1), 95-98. https://www.researchgate.net/publication/313768601_The_Role_of_Financial_institutions_and_the_Economic_Growth_A_Literature_Review
Klein, N. (2013). Non-performing loans in CESEE: Determinants and impact on macroeconomic performance. International Monetary Fund. https://www.imf.org/external/pubs/ft/wp/2013/wp1372.pdf
Kydland, F., & Prescott, E. (1990). Business cycles: Real facts and a monetary myth. Quarterly Review, 14(Spr), 3-18. https://doi.org/10.1080/000368499323201
Ma, Y., & Zhang, J. (2016). Financial cycle, business cycle and monetary policy: Evidence from four major economies. International Journal of Finance and Economics, 21(4), 502–527. https://doi.org/10.1002/ijfe.1566
Magdalena, A., Marpaung, B. S., & Indira, E. M. (2019). The effects of bank funds sources on bank profitability in Indonesian Stock Exchange. Riset: Jurnal Aplikasi Ekonomi Akuntansi dan Bisnis, 1(2), 090-098. https://doi.org/10.35212/riset.v1i2.23
Munthe, Risma & Nugraha, Nur Arif & Basmar, Edwin & Syafii, Ahmad & Pardede, Anita & Verlandes, Yuliasnita & Sudarmanto, Eko & Sn, Arfandi & Rahman, Abdul & Damanik, Darwin & Purba, Bonaraja & Penerbit, Hasyim & Menulis, Yayasan. (2021). Sistem Perekonomian Indonesia. https://www.researchgate.net/publication/354048321_Sistem_Perekonomian_Indones
parad, N. (2019). The Interaction between Profitability and Macroeconomic Factors for Future Examinations of European Banks Soundness – Theoretical Study. Financial Markets, Institutions and Risks, 3(3), 63-97. http://doi.org/10.21272/fmir.3(3). 63-97.2019
Paradiso, A., Kumar, S., & Rao, B. B. (2013). A New Keynesian IS curve for Australia: Is it forward looking or backward looking? Applied Economics, 45(26), 3691–3700. https://doi.org/10.1080/00036846.2012.718068
Rafique, A., Quddoos, M. U., Ali, S., Aslam, F., & Ahmad, M. (2021). Monetary policy transmission: Balance sheet channel and investment behavior of firms in Pakistan. Economic Journal of Emerging Markets, 13(1), 1–12. https://doi.org/10.20885/ejem.vol13.iss1.art1
Rahmadana M.F., et al (2021), Sejarah Pemikiran Ekonomi : Pemikiran dan Perkembangan. Yayasan Kita Menulis, Medan, pp 111 – 123. https://kitamenulis.id/2021/04/27/sejarah-pemikiran-ekonomi-pemikiran-dan-perkembangan
Rey, H. (2015). Dilemma not trilemma: The global financial cycle and monetary policy independence (No. w21162). National Bureau of Economic Research. https://doi.org/10.3386/w21162
Roy, T., Hossain, M., Jalal, M., Ebn, J., Saha, J. K., Sharmin, E., & Khan, M. (2021). Effects of credit on national and agricultural GDP, and poverty: a developing country perspective. SN Business & Economics, 1(10), 1-20. https://doi.org/10.1007/s43546-021-00146-6
Sebayang, P. (2020). The impact of the capital adequacy ratio, non-performing loan against to return on equity (Case study private Bank in Indonesia). In SHS Web of Conferences (Vol. 76, p. 01035). EDP Sciences. https://doi.org/10.1051/shsconf/20207601035
Soeikromo, D., Roeroe, S., & Rumokoy, N. K. (2020, January). Analysis of the causes of problemed home loan and alternative solutions for development of national banking performance. In International Conference on Business, Economic, Social Science, and Humanities–Humanities and Social Sciences Track (ICOBEST-HSS 2019) (pp. 60-63). Atlantis Press. http://dx.doi.org/10.2991/assehr.k.200108.013
Sudarmanto E., et al (2021), Manajemen Risiko Perbankan. Yayasan Kita Menulis, Medan, pp 49 - 74. https://kitamenulis.id/2020/10/03/manajemen-risiko-perusahaan/
Sudarmanto E., Fastabiqul K., Darwin D., Elidawaty P., Adat M. P., Arfandi S.N., Bonaraja P., Edwin B., Eva S., Astuti., (2021a), Pasar Uang dan Pasar Modal, Yayasan Kita Menulis, Medan, pp 87 – 98. https://kitamenulis.id/2021/09/15/pasar-uang-dan-pasar-modal/
Wahyudi, S. T., Nabella, R. S., & Badriyah, N. (2019). Analisis pengaruh siklus keuangan terhadap stabilitas sistem keuangan di Indonesia. Jurnal Ekonomi Dan Bisnis, 20(2), 87. https://doi.org/10.30659/ekobis.20.2.87-95
Copyright
Copyright aims to protect the specific way the article has been written to describe an experiment and the results. Shirkah: Journal of Economics and Business is committed to its authors to protect and defend their work and their reputation and takes allegations of infringement, plagiarism, ethical disputes, and fraud very seriously. Automotive Experiences is published under the terms of the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). Authors retain copyright and grant the journal right of first publication (online and print) with the work simultaneously. We use the restrictive license (non-commercial) as follows:
BY (attribution): Users are allowed to share, distribute and redistribute the published article in any medium or format, with an identification of the authors and its initial publication in this journal. Authors are encouraged to post and distribute their articles immediately after publication (e.g., institutional or public repositories, personal websites). Authors are allowed to enter into additional contractual arrangements for the non-exclusive distribution of the published and an acknowledgment of its initial publication in this journal.
NC (non-commercial): Users are not allowed to use the article commercially without the permission of the authors. Authors agree explicitly that the published article is indexed worldwide in databases, repositories and indexation services, even if these services operate on a commercial basis. Authors grant Shirkah: Journal of Economics and Business explicit the right to include the published articles in databases, repositories and indexation services. License
License to Publish
The non-commercial use of the article will be governed by the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). The author hereby grants Shirkah: Journal of Economics and Business an exclusive publishing and distribution license in the manuscript include tables, illustrations or other material submitted for publication as part of the manuscript (the “Articleâ€) in print, electronic and all other media (whether now known or later developed), in any form, in all languages, throughout the world, for the full term of copyright, and the right to license others to do the same, effective when the article is accepted for publication. This license includes the right to enforce the rights granted hereunder against third parties.
Author's Warranties
The author warrants that the article is original, written by stated author/s, has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
User Rights
Under the Creative Commons Attribution-Non Commercial 4.0 International (CC BY-NC 4.0) license, the author(s) and users are free to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material). Users must give appropriate credit, provide a link to the license, and indicate if changes were made.
Rights of Authors
Authors retain the following rights:
- Copyright, and other proprietary rights relating to the article, such as patent rights,
- The right to use the substance of the article in future own works, including lectures and books,
- The right to reproduce the article for own purposes, provided the copies are not offered for sale, and
- The right to self-archive the article.
Co-Authorship
If the article was prepared jointly with other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.
Royalties
This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by Shirkah: Journal of Economics and Business or its sublicensee.
Miscellaneous
Shirkah: Journal of Economics and Business will publish the article (or have it published) in the Journal if the article’s editorial process is successfully completed and Shirkah: Journal of Economics and Business or its sublicensee has become obligated to have the article published. Shirkah: Journal of Economics and Business may conform the article to a style of punctuation, spelling, capitalization, and usage that it deems appropriate.