INDONESIA - IMF - Detailed Assessment of Observance of IMF Code of Good Practices on Transparency in Monetary and Financial Policies

Date:	July 18, 2012
Electronic Access:	Free Full text (PDF file size is 932KB). Use the free Adobe Acrobat Reader to view this PDF file
Series:	Country Report No. 12/188
Subject(s):	Indonesia

INDONESIA - IMF - Indonesia: CPSS-IOSCO Recommendations for Securities Settlement Systems - The Equity and Corporate Bonds Securities Settlement Systems

Date:	July 18, 2012
Electronic Access:	Free Full text (PDF file size is 520KB). Use the free Adobe Acrobat Reader to view this PDF file
Series:	Country Report No. 12/186
Subject(s):	Indonesia

INDONESIA - IMF - Country report - Implementation of the IOSCO Objectives and Principles of Securities Regulation

Date:	July 18, 2012
Electronic Access:	Free Full text (PDF file size is 721KB). Use the free Adobe Acrobat Reader to view this PDF file
Series:	Country Report No. 12/189
Subject(s):	Indonesia

INDONESIA - FINANCE - Statement at the Conclusion of the 2012 Article IV Consultation Mission to Indonesia

www.imf.org - Press Release No. 12/251 - July 6, 2012
Mr. Milan Zavadjil, Senior Resident Representative of the International Monetary Fund (IMF) in Indonesia, released the following statement today in Jakarta:
“An IMF mission led by Mr. Sanjaya Panth, Division Chief in the Asia and Pacific Department, visited Jakarta during June 25-July 6, 2012 to conduct the 2012 Article IV Consultation discussions. The team exchanged views with the government and Bank Indonesia on global economic developments and the Indonesian economic outlook. The team also met with a wide spectrum of the public and private representatives. Based on the visit, the team will prepare a staff report to be presented to the IMF's Executive Board in early September.¹ (source)

MALAYSIA - PUBLICATIONS - IMF Working Paper 12-151 - What's in it for me ?

www.inf.org

What’s in It for Me? A Primer on Differences between Islamic and Conventional Finance in Malaysia

Krasicka, Olga ; Nowak, Sylwia 

IMF Working Papers - June 2012 - 12/151

 

Summary: What attracts conventional investors to Islamic financial instruments? We answer this question by comparing Malaysian Islamic and conventional security prices and their response to macrofinancial factors. Our analysis suggests that Islamic and conventional bond and equity prices are driven by common factors. Likewise, especially in recent years, Islamic banks have responded to economic and financial shocks in the same way as conventional banks, suggesting that the gap between Islamic and conventional financial practices is shrinking. (source)

WORLD - PUBLICATIONS - Managing Global Growth Risks and Commodity Price Shocks - Vulnerabilities and Policy Challenges for Low-Income Countries

Managing Global Growth Risks and Commodity Price Shocks - Vulnerabilities and Policy Challenges for Low-Income Countries

Summary: As part of its work to help low-income countries (LICs) manage volatility, the IMF has recently developed an analytical framework to assess vulnerabilities and emerging risks that arise from changes in the external environment (see IMF, 2011a). This report draws on the results of the first Vulnerability Exercise for LICs (VE-LIC) conducted by IMF staff using this new framework.

The report focuses on the risks of a downturn in global growth and of further global commodity price shocks, and discusses related policy challenges. The report is organized as follows: Chapter I reviews recent macroeconomic developments, including the spike in global commodity prices earlier this year. Chapter II assesses current risks and vulnerabilities, including how a sharp downturn in global growth and further commodity price shocks would affect LICs. Chapter III discusses policy challenges in the face of these risks and vulnerabilities. (download)

WORLD - PUBLICATIONS - A Theory of Domestic and International Trade Finance

A Theory of Domestic and International Trade Finance 

Author/Editor: Ahn, JaeBin 

Authorized for Distribution: November 01, 2011 

Summary: This paper provides a theory model of trade finance to explain the "great trade collapse." The model shows that, first, the riskiness of international transactions rises relative to domestic transactions during economic downturns, and second, the exclusive use of a letter of credit in international transactions exacerbates a collapse in trade during a financial crisis. The basic model considers banks' optimal screening decisions in the presence of counterparty default risks. In equilibrium, banks will maintain a higher precision screening test for domestic firms and a lower precision screening test for foreign firms, which constitutes the main mechanism of the model.

WORLD - IMF - Monetary Policy, Bank Leverage, and Financial Stability

IMF Working Paper 110244
Monetary Policy, Bank Leverage, and Financial Stability

Valencia Fabian

Summary: This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in the risk-free rate increases lending profitability by reducing funding costs and increasing the surplus the monopolistic bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing the bank to take excessive leverage and hence risk. Excessive risk-taking increases as the interest rate decreases. At a broader level, the model illustrates how a benign macroeconomic environment can lead to excessive risk-taking, and thus it highlights a role for macroprudential regulation. (source)

INDONESIA - IMF - Consultation

1. Indonesia: 2011 Article IV Consultation - Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Indonesia 

2. Indonesia - Public Information Notice -IMF Executive Board Concludes 2011 Article IV Consultation with Indonesia -Public Information Notice (PIN) No. 11/128 

3. Indonesia: Selected Issues 

4. IMF Magazine - Strong Domestic Demand Cushions Indonesia from Global Uncertainty   

All dated Oct 21, 2011 - source IMF

WORLD - GENERAL - WB meet fails to address Islamic finance role in development

ARABNEWS.COM - Oct. 03--Islamic finance got an important airing at the 2011 annual meetings of the World Bank Group/International Monetary Fund (IMF) held in Washington last week when Ahmad Mohamed Ali, president of the Islamic Development Bank Group (IDB) was invited for the first time to address the influential 84th Development Committee meeting of the World Bank as an observer.  (source)

WORLD - IMF - PUBLICATIONS - The Bright and the Dark Side of Cross-Border Banking Linkages

The Bright and the Dark Side of Cross-Border Banking Linkages

Cihák, Martin ; Muñoz, Sònia ; Scuzzarella, Ryan

Series : IMF Working Paper  WP/11.186

Publication date : Aug 1, 2011

Summary: When a country’s banking system becomes more linked to the global banking network, does that system get more or less prone to a banking crisis? Using model simulations and econometric estimates based on a world-wide dataset, we find an M-shaped relationship between financial stability of a country’s banking sector and its interconnectedness. In particular, for banking sectors that are not very connected to the global banking network, increases in interconnectedness are associated with a reduced probability of a banking crisis. Once interconnectedness reaches a certain value, further increases in interconnectedness can increase the probability of a banking crisis. Our findings suggest that it may be beneficial for policies to support greater interlinkages for less connected banking systems, but after a certain point the advantages of increased interconnectedness become less clear.

Free Full text (PDF file size is 1,477KB).

WORLD - IMF - Statement at the Conclusion of the 2011 Article IV Consultations Mission to Indonesia

Press Release No. 11/290
July 21, 2011 Mr. Milan Zavadjil, Senior Resident Representative of the International Monetary Fund (IMF) in Indonesia, released the following statement today in Jakarta:

“An IMF mission led by Mr. Thomas Rumbaugh, Division Chief in the Asia and Pacific Department, visited Jakarta during July 7-21, 2011 to conduct the 2011 Article IV Consultation discussions. The team exchanged views with the government on global economic developments and the Indonesian economic outlook. Based on these discussions, the team will prepare a staff report scheduled to be presented to the IMF's Executive Board in late September.¹ (full story)

IMF - Press Release - Statement by IMF Managing Director at the Conclusion of his Visit to Indonesia

International Monetary Fund Managing Director Dominique Strauss-Kahn 

and Indonesian President Susilo Bambang Yudhoyono

Press Release No. 11/26
February 2, 2011
 
Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), issued the following statement today in Jakarta at the conclusion of his visit to Indonesia: (source)

ARTICLES - Deconstructing The International Business Cycle: Why Does A U.S. Sneeze Give The Rest Of The World A Cold?

Summary: The 2008 crisis underscored the interconnectedness of the international business cycle, with U.S. shocks leading to the largest global slowdown since the 1930s. We estimate spillover effects across major advanced country regions in a structural VAR (SVAR) using pre-crisis data. Our new method freely estimates the contemporaneous correlation matrix for underlying shocks in the VAR and (uniquely, to our knowledge) the associated uncertainty. Our results suggest that the international business cycle is largely driven by U.S. financial shocks with a significant impact from global shocks, mainly reflecting commodity prices. Other advanced economic regions play a much smaller and regional role in growth spillovers. Our findings are consistent with the emerging evidence on the current crisis.

PUBLICATONS - REPORTS - IMF - Islamic Banks: More Resilient to Crisis?

A new IMF study compares the performance of Islamic banks and conventional banks during the recent financial crisis, and finds that Islamic banks, on average, showed stronger resilience during the global financial crisis.

See also : http://islamicfinanceindonesia.blogspot.com/2010/09/banking-islamic-banks-fared-better.html
See also : http://islamicfinanceindonesia.blogspot.com/2010/09/articles-imf-effects-of-global-crisis.html

BANKING - 'Islamic banks fared better during financial crisis'

Since the global financial crisis started to unfold in 2008, there have been several reports suggesting that Islamic banks have been less affected by the crisis because they are not allowed for ethical reasons to invest in the pernicious derivatives such as CDOs (credit default obligations) that precipitated the worst crisis the world has seen since the Great Depression in the 1930s. Such reports have largely been based on oversimplified assumptions about Islamic finance and in a few instances on an emotional attachment based more on religiosity than on dispassionate non-descriptive empirical analysis.

ARTICLES - IMF - The Effects of the Global Crisis on Islamic and Conventional Banks: A Comparative Study

Summary: This paper examines the performance of Islamic banks (IBs) and conventional banks (CBs) during the recent global crisis by looking at the impact of the crisis on profitability, credit and asset growth, and external ratings in a group of countries where the two types of banks have significant market share.

Our analysis suggests that IBs have been affected differently than CBs. Factors related to IBs‘ business model helped limit the adverse impact on profitability in 2008, while weaknesses in risk management practices in some IBs led to a larger decline in profitability in 2009 compared to CBs. IBs‘ credit and asset growth performed better than did that of CBs in 2008-09, contributing to financial and economic stability. External rating agencies‘ re-assessment of IBs‘ risk was generally more favorable.

BANKING - Growing Islamic finance should diversify, regulate: analysts

KUWAIT CITY, Sunday 5 September 2010 (AFP) -- Islamic finance, which prohibits charging interest, is set to double in size in five years, but the one-trillion-dollar industry must diversify and regulate to realise its full potential, analysts and economic reports say.

Diversification into new territories is also necessary to reduce the risk of exposure and utilise their full potential, they add.

VIDEO - IMF - Islamic finance - Abbas Mirakhor, Dean of the IMF's Executive Board (18-09-2007)

Youtube

Abbas Mirakhor - on Islamic finance - the interview is somewhat older - but I thought it was still a nice idea to share with you. Enjoy.
http://www.imf.org/external/mmedia/view.aspx?vid=78910241001

ARTICLE - BANKING - IMF - Islamic Banking : how was it difused ?

Patrick Imam and Kangni Kpodar, Islamic banking : how was it difused ?, IMF Working paper, African Department, Aug 2010 - WP/10/195

can be downloaded here : http://www.imf.org/external/pubs/ft/wp/2010/wp10195.pdf

see original post : http://islamicfinanceindonesia.blogspot.com/2010/08/banking-911-attacks-gave-rise-to.html