TITLE

An empirical analysis of credit migration in Indonesian banking

AUTHOR(S)
Dar, Humayon A.; Hall, Maximilian J. B.; Muljawan, Dadang
PUB. DATE
December 2003
SOURCE
Journal of International Banking Regulation;Dec2003, Vol. 5 Issue 2, p147
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper analyses the process of credit migration in an Islamic commercial bank operating in Indonesia. In particular, the relevance of industrial performance to the dynamics of loan status in the selected bank is explored. From the statistical results, two interesting phenomena are revealed. First, industrial performance is statistically significant in affecting the credit migration process and, secondly, there is irreversibility in the credit migration process. This analysis can be used to provide additional information to Indonesian banks, as well as their supervisors, to help improve the accuracy of the risk assessment process, and the efficiency of external oversight respectively.
ACCESSION #
12550496

 

Related Articles

  • STATISTINIŲ VERTINIMO BALAIS MODELIŲ TAIKYMAS LIETUVOS BANKUOSE. DzidzevičiūtĖ, Laima // Monetary Studies (Bank of Lithuania);Dec2010, Vol. 14 Issue 2, p69 

    No abstract available.

  • It's a Timing Thing…Analyzing Credit Data. Nobles, Carolyn // Banking New York;Fall2008, Issue 7, p26 

    The article discusses the importance of timely analysis of credit data by banks. Two types of data are described which include available data and required data. Banks are combining the use of both types for better credit risk management. Data issues and challenges are presented, including bad or...

  • Pricing risky bank loans in the new Basel 2 environment. Hasan, Iftekhar; Zazzara, Cristiano // Journal of Banking Regulation;Apr-Jul2006, Vol. 7 Issue 3/4, p243 

    What should be the price of banking loans according to new Basel 2 rules? What should be the adequate remuneration for banks as a result of undertaking credit risk? In this paper, we propose a simplified formula to price bank's corporate loans, aiming at making bank managers aware of the...

  • Tech Implications of Charter Expansion. Murphy, Terry // Credit Union Executive Newsletter;2/9/2004, Vol. 30 Issue 3, p7 

    Focuses on the implications of charter expansion for credit union's operations. Importance of technology that readily integrates with the systems used for account-opening on credit unions; Technology required for an efficient indirect lending; Significance of a high availability strategy of...

  • NEITHER A BORROWER NOR A LENDER BE OR THE BANK SHOT REVISITED. Woolsey, Gene // Interfaces;Jun80, Vol. 10 Issue 3, p9 

    The article focuses on the problem of finding out reasons of defaults on car loans being faced by a large banking chain. The particular banking chain has had the highest level of defaults on car loans in state history during 1979. So, they were concerned with knowing exactly what had caused this...

  • Vanquis Bank: testing the credit limit.  // MarketWatch: Financial Services;Apr2005, Vol. 4 Issue 4, p9 

    The article announces the launch of a new sub-prime Visa credit card by Vanquis Bank which is aimed at people with low income or history of bad credits in the U.S. However, the card has received scrutiny from consumer groups since the card charges an annual percentage rate (APR) of up to 69.5...

  • The Basel II Reform and Retail Credit Markets. Claessens, Stijn; Krahnen, Jan; Lang, William // Journal of Financial Services Research;Oct2005, Vol. 28 Issue 1-3, p5 

    This article focuses on the efforts to reform the Basel Committee's standards for regulatory capital--Basel II. The Basel II proposal is encouraging banks to upgrade their credit risk management approaches. Under the Basel II proposal, banks with sufficiently sophisticated risk measurement and...

  • Optimization of nearest neighbor classifiers via metaheuristic algorithms for credit risk assessment. Yannis Marinakis; Magdalene Marinaki; Michael Doumpos; Nikolaos Matsatsinis; Constantin Zopounidis // Journal of Global Optimization;Oct2008, Vol. 42 Issue 2, p279 

    Abstract  The classification problem consists of using some known objects, usually described by a large vector of features, to induce a model that classifies others into known classes. The present paper deals with the optimization of Nearest Neighbor Classifiers via Metaheuristic...

  • A Credit Risk Evaluation Index System Establishment of Petty Loans for Farmers Based on Correlation Analysis and Significant Discriminant. Linpeng Hai; Baofeng Shi; Guorong Peng // Journal of Software (1796217X);Sep2013, Vol. 8 Issue 9, p2344 

    By the end of 2011, agricultural population in accounted for 48.73% in China. Also, farmers in China are dispersed and their financial information is incomplete, which leads to credit risk evaluation system of farmers in China is not sound at all. Most Chinese banks even have not established the...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics