Weighting on Systemic Important Banking (SIB) in Indonesia: The Official Versus PCA Approaches

Author:

Anwar Samsul1

Affiliation:

1. Department of Statistics , Universitas Syiah Kuala , Banda Aceh , Indonesia

Abstract

Abstract In determining its Domestic Systemic Important Banking (D-SIB), Indonesia implemented the Global Systemic Important Banking (G-SIB) based on three of five indicators, those being size, interconnectedness, and complexity. Both the G-SIB and the Indonesian D-SIB use an equal weight for each indicator, that is, 1/5 and 1/3 respectively. However, the weight could be modified by using the eigenvector of the Principal Component Analysis (PCA). We showed that this new weighting system was better than the official weighting system (referred to in this paper as the POJK approach) based on the Financial Services Authority (OJK) regulation No.46/POJK.03/2015.

Publisher

Walter de Gruyter GmbH

Subject

Strategy and Management,Economics and Econometrics,Finance

Reference33 articles.

1. 1. Andrian, T. and Brunnermeier, M. K. (2008). CoVaR, Federal Reserve Bank of New York, Staff Report 348.

2. 2. Andrian, T. and Brunnermeier, M. K. (2011). CoVaR, National Bureau of Economic Research (NBER), Working Paper 17454.

3. 3. Anwar, S. (2018). Modifikasi Pembobotan Systemic Important Score dengan Principal Component Analysis. Jurnal Ekonomi dan Pembangunan Indonesia, 18(2), 128–151. https://doi.org/10.21002/jepi.v18i2.748

4. 4. BCBS [Basel Committee on Banking Supervision]. (2013). Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement. Basel: Bank for International Settlements (BIS). Available at https://www.bis.org/publ/bcbs255.htm

5. 5. Brownlees, C. T. & Engle, R. (2012). Volatility, Correlation and Tails for Systemic Risk Measurement. Social Science Research Network (id 1611229), 1-55. Available at https://faculty.washington.edu/ezivot/econ589/VolatilityBrown-lees.pdf

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3