Journal of Indonesian Applied Economics
Vol. 7 No. 2 (2017)

DETERMINATION OF SIFIs (SYSTEMATICALLY IMPORTANT FINANCIAL INSTITUTIONS) AMONG INDONESIAN BANKS USING NETWORK ANALYSIS APPROACH

Anggayasti Hayu Anindita (Universitas Indonesia)
Zaafri Ananto Husodo (Universitas Indonesia)



Article Info

Publish Date
31 Jul 2017

Abstract

This study aims to measuring systemic risks using network analysis method to obtain the SIFI rating of Indonesian banks. We analyze the systemic risk implied in the Indonesian interbank network during the period from 2011 through 2015 based on various network measures such degree centrality and betweenness centrality. The main findings are as follows: First, interconnectedness in the interbank market increased. However, a significantly different condition was found in 2013, in which the interconnectedness in the interbank market went downwards compared to the previous year. Second, the degree centrality score showed that government-owned and national private banks tend to be in-degree while foreign private banks tend to be out-degree. Third, there was no bank that consistently continued to have a high betweeness centrality score during the study period.

Copyrights © 2017






Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...