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Journal : jurnal budget

Analysis of Financial Stability In Indonesia’s Banking Sector And Its Determinant Factors Mochammad Yusuf; Andika
Jurnal Budget : Isu dan Masalah Keuangan Negara Vol 10 No 2 (2025): Jurnal Budget: Isu dan Masalah Keuangan Negara
Publisher : Pusat Analisis Anggaran dan Akuntabilitas Keuangan Negara

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Abstract

This study analyzes the financial stability of Indonesia’s banking sector and the macroprudential factors influencing it over the period 2014–2024. Monthly time-series data obtained from Bank Indonesia and the Financial Services Authority (OJK) were processed using the Engle–Granger Error Correction Model (ECM) to examine both short-run and long-run relationships between inflation, interest rates, exchange rates, and money supply in relation to financial stability, which is measured through the Bank Z-score. The empirical findings reveal that inflation exerts a significantly negative impact on financial stability, while the policy interest rate has a significantly positive long-term effect. The money supply demonstrates a positive influence in the long run but a negative one in the short run, whereas the exchange rate shows no statistically significant effect. These results highlight the importance of maintaining credible monetary policy and adaptive macroprudential coordination to safeguard the resilience of Indonesia’s banking sector amid persistent global economic uncertainties.
Co-Authors Aditya Ramadhan Agil Murtadlo Agil Yahya Alam, Sahrul Ali Ana Sofia Aryati Anisah, Tiara Nur Ansor Putra Ardiansyah Ardiansyah, Andri Arham Arief Darmawan Arman Arman Asrul Boby Prayoga Br Surbakti, Junita Carli Dalma, Siti Fatima Dany, Waode Mutiara Ariesta Davin Vandello Dwiyanthi Kusuma, Ellysha Elisabeth Winata Endarman Saputra Esther Praja Anggriany Panggabean Fauziah, Nor Fredian, Dede Hadirin Hafid, Ridho Agni Hana Ni’matul Izzah Harnaji, Bimo Haryanto, Eri Hasilun, Laode Ahmad Nurrabiul Awal Hilda Porawati Hozairi I Ketut Mangku Ignatius Tarunay, Oliver Ihsan, Akmal Indini Indra Gumay Febryano Iryani, Lemi ISHAK Iswandaru, Dian JA, Sudarma Jasukron, Dondi Jayawarsa, A.A. Ketut Joshi, Mahesh Chandra Kambali Kambu, Victor Kartono Khoerul Umam, Khoerul Kiki Sarnita Kurahmadan, Hidayat Lula Annisa Lunardi, Lidya Luthfiana, Della Nanda M. Fadli Mahdayeni Maiken Des Riu Mangku, I Ketut MASLIKHAH Masrin Gafar Mega Fatimah Rosana Melli Agustiani Meor Johari, Meor Muhammed Afique Moch. Ashroful Malik Mochammad Yusuf Moh Ahsan S Mandra Mohammad Salman Muhamad Aslan Muhammad Diwanul Mujahidin Muhammad Iqbal Muhammad Irvan Muttaqinullah Nadia Najmudin, Mohamad Nanda Luthfiana, Della Nanda, Pooja NASUTION, ATIKA AINI Nispa Nofriadi Norbertus Citra Irawan Novriyenni Nugroho, Joko Purwanto NUR FAIDZIN Nurfadillah Nurul OKTADINATA, ALEK Pardede, Akim Manaor Hara Purnama, Ari Purnamasari, Anisa Putri Maharani Putri Maisarah, Marisa Putri, Junita Ahira Radityo Putro Handrito Rahma Rahmawati Rahmawati Raka Juniar Renaldy Ramdani Ridwan Syah Nuhun Rizki Prastyo Rohminatin Sahpitri, Seroja Salim, Marsya Siskamayanti Sandi Yudha Barri Zaqy Sari Yulis Sarmiyati Septiani, Nabila Sindy Siti Aisyah Sri Hidayanti Srirahayu, Annizha Gita Sugeng p Harianto Sulita, Indah Talabu Karyaman Tuyamaku Buulolo Tampubolon, Nobel Kristian Tripandoyo Tiaranty Esperansa Situmorang Try Try Sugiyarto Umilizah, Nia Vira Sasmita Wahyudi, A. Rofiqi Wandika, Daniel Widya Ningsih, Aliftianna yeni, Mahdayeni Yuanidhar, Fazah Yuca HR, Mega Yuha Ilaiya Yusa Putra Widyatama Zainarti