DYNAMIC RELATIONSHIP BETWEEN CAPITAL INFLOWS AND BANK LENDING: THE ROLE OF COMMODITY PRICE AND GLOBAL FINANCIAL MARKET SHOCKS

Bulletin Ekonomi Moneter dan Perbankan

Iskandar Simorangkir¹  Doni Satria²  Nachrowi Djalal Nachrowi³  Telisa A. Falianty³ 

[1] Ministry of Economic Coordinator Republic of Indonesia, Indonesia;Padang State University and Universitas Indonesia, Indonesia;Universitas Indonesia, Indonesia;

关键词: commodity price shocks;    capital inflows;    bank lending;    financial stability.;   

DOI  :  10.21098/bemp.v24i4.1170

来源: DOAJ

【 摘 要 】

This paper investigates the dynamic relationship between capital inflows and bank lending in Indonesia. We use a Structural Vector AutoRegression (SVAR) model that allows exogenous international commodity prices and global financial market fluctuations to influence capital inflows. We find that commodity price shocks are more important as compared to global financial shocks in explaining the variance of capital inflows in the long run. Furthermore, shocks from capital inflows lead to a change in bank lending allocation across economic sectors.

【 授权许可】

Unknown