Indonesia: Financial System Stability Assessment
IMF Staff Country Reports, September 16, 2010
Source details
- Canonical URL
- Indonesia: Financial System Stability Assessment
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Bibliographic details
- Published: September 16, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455208524.002
Summary findings
- Indonesia recovered quickly after being hit hard by contagion from the global financial crisis.
- Banking fundamentals have improved, with most Indonesian banks reporting high capital, comfortable levels of liquidity, and solid profitability.
- Banks exhibit rising credit exposures to retail and SMEs.
- The Crisis Management Protocol functioned well during the crisis, but it has lapsed.
- A viable capital market will diversify the sources of funding and provide long-term investment opportunities.
- The small insurance industry should be restructured and gradually expanded to broaden the institutional investor base.
Banking sector and financial institutions
- Most banks report:
- high capital
- comfortable levels of liquidity
- solid profitability
- Emerging risk:
- rising credit exposures to retail and SMEs
- Structural recommendation:
- strengthen supervision and oversight to manage evolving credit exposures
Crisis management and financial stability framework
- Crisis Management Protocol:
- Functioned well during the crisis
- Has lapsed since the crisis, implying a need to reactivate or update the protocol
Capital markets and institutional investors
- Capital market role:
- A viable capital market will diversify funding sources
- Will provide long-term investment opportunities
- Insurance sector:
- Described as small
- Should be restructured and gradually expanded to broaden the institutional investor base
Subject coverage and keywords (as provided)
- Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Capital adequacy requirements, Commercial banks, Crime, Crisis management, Financial crises, Financial institutions, Loans
- Keywords include: a number of bank, Anti-money laundering and combating the financing of terrorism (AML/CFT), asset quality, bank supervision function, bank supervisor, bank's closure, capitalized bank, Commercial banks, CR, Crisis management, funding structure, Global, government bank, institutional investor, ISCR, Loans, mid-sized bank, problem bank, recognition of impairment, rescued bank, supervision function
Content in this bundle
- Indonesia: Financial System Stability Assessment; IMF Country Report 10/288; August 12, 2010