How to cite this paper
Lutfi, L., Kristijadi, E & Silvy, M. (2020). Simultaneous adjustment of bank capital and risk: Evidence from the Indonesian commercial banks.Accounting, 6(5), 637-648.
Refrences
Abbas, F. & Masood, O. (2020). How do large commercial banks adjust capital ratios: empirical evidence from the US? Economic Research-Ekonomska Istraživanja, 33(1), 1849-1866.
Aggarwal, R. & Jacques, K. T. (1998). Assessing the impact of prompt corrective action on bank capital and risk. Economic Policy Review, 4(3), 23-32.
Altman, E. I., Brady, B., Resti, A., & Sironi, A. (2005). The link between default and recovery rates: Theory, empirical evidence, and implications. The Journal of Business, 78(6), 2203-2228.
Altunbaş, Y., Carbo, S., & Gardener, E. P. (2001). The impact of CAR on bank capital augmentation in Spain. In Bank Strategies and Challenges in the New Europe (pp. 213-231), Springer.
Asea, P. K. & Blomberg, B. (1998. Lending cycles. Journal of Econometrics, 83(1), 89-128.
Ayuso, J., Pérez, D., & Saurina, J. (2004). Are capital buffers pro-cyclical?: Evidence from Spanish panel data. Journal of Financial Intermediation, 13(2), 249-264.
Basel. (2011). Basel III: A Global Regulatory Framework for more Resilient Banks and Banking System. Basel.
Basheer, M., Ahmad, A., & Hassan, S. (2019). Impact of economic and financial factors on tax revenue: Evidence from the Middle East countries. Accounting, 5(2), 53-60.
Beccalli, E., Anolli, M., & Borello, G. (2015). Are European banks too big? Evidence on economies of scale. Journal of Banking & Finance, 58: 232-246.
Bhagat, S., Bolton, B., & Lu, J. (2015). Size, leverage, and risk-taking of financial institutions. Journal of banking & finance, 59, 520-537.
Borio, C., Furfine, C., & Lowe, P. (2001). Procyclicality of the financial system and financial stability: issues and policy options. BIS papers, 1, 1-57.
Boyd, J. H. & De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329-1343.
Calomiris, C. W. & Kahn, C. M. (1991). The role of demandable debt in structuring optimal banking arrangements. The American Economic Review: 497-513.
Cannata, F. & Quagliariello, M. (2006). Capital and risk in Italian banks: A simultaneous equation approach. Journal of Banking Regulation, 7(3-4), 283-297.
Demsetz, R. S. & Strahan, P. E. (1997). Diversification, size, and risk at bank holding companies. Journal of Money, Credit, and Banking, 29(3), 300-313.
Diamond, D. W. & Rajan, R. G. (2000). A theory of bank capital. The Journal of Finance, 55(6), 2431-2465.
Duran, M. A. & Lozano-Vivas, A. (2015). Moral hazard and the financial structure of banks. Journal of International Financial Markets, Institutions and Money, 34, 28-40.
Ediz, T., Michael, I., & Perraudin, W. (1998). The impact of capital requirements on UK bank behaviour. Economic Policy Review, 4(3), 15-22.
Freixas, X. & Rochet, J.-C. (2008). Microeconomics of banking. MIT press.
García-Herrero, A., Gavilá, S., & Santabárbara, D. (2009). What explains the low profitability of Chinese banks? Journal of Banking & Finance, 33(11), 2080-2092.
García-Suaza, A. F., Gómez-González, J. E., Pabón, A. M., & Tenjo-Galarza, F. (2012). The cyclical behavior of bank capital buffers in an emerging economy: Size does matter. Economic Modelling, 29(5), 1612-1617.
Ghosh, S. (2014). Risk, capital and financial crisis: Evidence for GCC banks. Borsa Istanbul Review, 14(3), 145-157.
Godlewski, C. J. (2005). Bank capital and credit risk taking in emerging market economies. Journal of Banking Regulation, 6(2), 128-145.
Gujarati, D. N. & Porter, D. (2009). Basic Econometrics Mc Graw-Hill International Edition.
Guttentag, J. & Herring, R. (1984). Credit rationing and financial disorder. The Journal of Finance, 39(5), 1359-1382.
Ha, V. (2020). Does bank capital affect profitability and risk in Vietnam? Accounting, 6(3), 273-278.
Hadad, M. D., Satrio, W., Handoko, S., Yuniar, M., & Noviati, N. (2003). Kajian Mengenai Efektivitas Kebijakan Obligasi Rekap.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis. 7 ed. Essex: Pearson Education Limited.
Hakenes, H. & Schnabel, I. (2011). Bank size and risk-taking under Basel II. Journal of banking & finance, 35(6), 1436-1449.
Hart, O. D. & Jaffee, D. M. (1974). On the application of portfolio theory to depository financial intermediaries. The Review of Economic Studies, 41(1), 129-147.
Heid, F., Porath, D., & Stolz, S. (2004). Does capital regulation matter for bank behaviour? Evidence for German savings banks. In, Discussion Papers — Series 2: Banking and Financial Supervision: Deutsche Bundesbank.
Holmstrom, B., & Tirole, J. (1997). Financial intermediation, loanable funds, and the real sector. The Quarterly Journal of Economics, 112(3), 663-691..
Indonesia, B. (2004). Surat Edaran Bank Indonesia No. 6/23/DPNP tentang Sistem Penilaian Tingkat Kesehatan Bank Umum. Jakarta: Bank Indonesia
Indonesia, B. (2013). Peraturan Bank Indonesia No. (15/12/PBI/2013 Tentang Kewajiban Penyediaan Modal Minimum Bank Umum. Jakarta: Bank Indonesia
Jacques, K. & Nigro, P. (1997). Risk-based capital, portfolio risk, and bank capital: A simultaneous equations approach. Journal of Economics and business, 49(6), 533-547.
Jeitschko, T. D. & Jeung, S. D. (2007). Do well-capitalised banks take more risk? Evidence from the Korean banking system. Journal of Banking Regulation, 8(4), 291-315.
Jokipii, T. & Milne, A. (2008). The cyclical behaviour of European bank capital buffers. Journal of Banking & Finance, 32(8), 1440-1451.
Jokipii, T. & Milne, A. (2011). Bank capital buffer and risk adjustment decisions. Journal of Financial Stability, 7(3), 165-178.
Kim, D. & Santomero, A. M. (1988). Risk in banking and capital regulation. The Journal of Finance, 43(5), 1219-1233.
Koehn, M. & Santomero, A. M. (1980). Regulation of bank capital and portfolio risk. The Journal of Finance, 35(5), 1235-1244.
Marcucci, J. & Quagliariello, M. (2008). Is bank portfolio riskiness procyclical?: Evidence from Italy using a vector autoregression. Journal of International Financial Markets, Institutions and Money, 18(1), 46-63.
Marcus, A. J. (1984). Deregulation and bank financial policy. Journal of banking & finance, 8(4), 557-565.
Miles, D. (1995). Optimal regulation of deposit taking financial intermediaries. European Economic Review, 39(7), 1365-1384.
Milne, A. (2006). Optimal regulation of deposit taking financial intermediaries: A correction. European Economic Review, 50(2), 509-516.
Milne, A. & Whalley, A. E. (2001). Bank capital regulation and incentives for risk-taking. Cass Business School Research Paper.
Nachane, D. & Ghosh, S. (2001). Risk-Based Standards, Portfolio Risk and Bank Capital: An Econometric Study. Economic and Political Weekly, 36(10), 871-876.
Ovi, N., Bose, S., Gunasekarage, A., & Shams, S. (2020). Do the business cycle and revenue diversification matter for banks’ capital buffer and credit risk: Evidence from ASEAN banks. Journal of Contemporary Accounting & Economics, 100186.
Porteous, B. & Tapadar, P. (2005). Economic capital and financial risk management for financial services firms and conglomerates. Palgrave Macmillan.
Pyle, D. H. (1971). On the theory of financial intermediation. The Journal of Finance, 26(3), 737-747.
Quagliariello, M. (2007). Banks’ riskiness over the business cycle: a panel analysis on Italian intermediaries. Applied Financial Economics, 17(2), 119-138.
Rajan, R. G. (1994). Why bank credit policies fluctuate: A theory and some evidence. the Quarterly Journal of economics, 109(2), 399-441.
Raz, A. F. (2018). Risk and capital in Indonesian large banks. Journal of Financial Economic Policy, 10(1), 165-184.
Rime, B. (2001). Capital requirements and bank behaviour: Empirical evidence for Switzerland. Journal of banking & finance, 25(4), 789-805.
Rowe, D., Jovic, D., & Reeves, R. (2004). Basel II and economic capital. US Banker, April: 28-62.
Setyawati, I., Widyastuti, T., Suryati, A., & Hartani, N. (2019). Intellectual capital performance of Islamic banks in Indonesia: Towards competitive advantages. Management Science Letters, 9(12), 1999-2008.
Sharpe, S. A. (1990). Asymmetric information, bank lending, and implicit contracts: A stylized model of customer relationships. The Journal of Finance, 45(4), 1069-1087.
Shim, J. (2013). Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification. Journal of banking & finance, 37(3), 761-772.
Shrieves, R. E. & Dahl, D. (1992). The relationship between risk and capital in commercial banks. Journal of banking & finance, 16(2), 439-457.
Siddika, A. & Haron, R. (2019). Capital regulation and ownership structure on bank risk. Journal of Financial Regulation and Compliance, 28(1), 39-56.
Simpanan, L. P. (2018). Annual Report 2011. Jakarta: Lembaga Penjamin Simpanan
Sinkey, J. F. & Greenawalt, M. B. (1991). Loan-loss experience and risk-taking behavior at large commercial banks. Journal of Financial Services Research, 5(1), 43-59.
Stolz, S. & Wedow, M. (2011). Banks’ regulatory capital buffer and the business cycle: Evidence for Germany. Journal of Financial Stability, 7(2), 98-110.
Tan, Y., Floros, C., & Anchor, J. (2017). The profitability of Chinese banks: impacts of risk, competition and efficiency. Review of Accounting and Finance.
Van Roy, P. (2008). Capital requirements and bank behavior in the early 1990s: Cross country evidence. International Journal of Central Banking, 4(3), 29-60.
Yu, H. C. (2000). Banks’ Capital Structure and the Liquid Asset–Policy Implication of Taiwan. Pacific Economic Review, 5(1), 109-114.
Aggarwal, R. & Jacques, K. T. (1998). Assessing the impact of prompt corrective action on bank capital and risk. Economic Policy Review, 4(3), 23-32.
Altman, E. I., Brady, B., Resti, A., & Sironi, A. (2005). The link between default and recovery rates: Theory, empirical evidence, and implications. The Journal of Business, 78(6), 2203-2228.
Altunbaş, Y., Carbo, S., & Gardener, E. P. (2001). The impact of CAR on bank capital augmentation in Spain. In Bank Strategies and Challenges in the New Europe (pp. 213-231), Springer.
Asea, P. K. & Blomberg, B. (1998. Lending cycles. Journal of Econometrics, 83(1), 89-128.
Ayuso, J., Pérez, D., & Saurina, J. (2004). Are capital buffers pro-cyclical?: Evidence from Spanish panel data. Journal of Financial Intermediation, 13(2), 249-264.
Basel. (2011). Basel III: A Global Regulatory Framework for more Resilient Banks and Banking System. Basel.
Basheer, M., Ahmad, A., & Hassan, S. (2019). Impact of economic and financial factors on tax revenue: Evidence from the Middle East countries. Accounting, 5(2), 53-60.
Beccalli, E., Anolli, M., & Borello, G. (2015). Are European banks too big? Evidence on economies of scale. Journal of Banking & Finance, 58: 232-246.
Bhagat, S., Bolton, B., & Lu, J. (2015). Size, leverage, and risk-taking of financial institutions. Journal of banking & finance, 59, 520-537.
Borio, C., Furfine, C., & Lowe, P. (2001). Procyclicality of the financial system and financial stability: issues and policy options. BIS papers, 1, 1-57.
Boyd, J. H. & De Nicolo, G. (2005). The theory of bank risk taking and competition revisited. The Journal of Finance, 60(3), 1329-1343.
Calomiris, C. W. & Kahn, C. M. (1991). The role of demandable debt in structuring optimal banking arrangements. The American Economic Review: 497-513.
Cannata, F. & Quagliariello, M. (2006). Capital and risk in Italian banks: A simultaneous equation approach. Journal of Banking Regulation, 7(3-4), 283-297.
Demsetz, R. S. & Strahan, P. E. (1997). Diversification, size, and risk at bank holding companies. Journal of Money, Credit, and Banking, 29(3), 300-313.
Diamond, D. W. & Rajan, R. G. (2000). A theory of bank capital. The Journal of Finance, 55(6), 2431-2465.
Duran, M. A. & Lozano-Vivas, A. (2015). Moral hazard and the financial structure of banks. Journal of International Financial Markets, Institutions and Money, 34, 28-40.
Ediz, T., Michael, I., & Perraudin, W. (1998). The impact of capital requirements on UK bank behaviour. Economic Policy Review, 4(3), 15-22.
Freixas, X. & Rochet, J.-C. (2008). Microeconomics of banking. MIT press.
García-Herrero, A., Gavilá, S., & Santabárbara, D. (2009). What explains the low profitability of Chinese banks? Journal of Banking & Finance, 33(11), 2080-2092.
García-Suaza, A. F., Gómez-González, J. E., Pabón, A. M., & Tenjo-Galarza, F. (2012). The cyclical behavior of bank capital buffers in an emerging economy: Size does matter. Economic Modelling, 29(5), 1612-1617.
Ghosh, S. (2014). Risk, capital and financial crisis: Evidence for GCC banks. Borsa Istanbul Review, 14(3), 145-157.
Godlewski, C. J. (2005). Bank capital and credit risk taking in emerging market economies. Journal of Banking Regulation, 6(2), 128-145.
Gujarati, D. N. & Porter, D. (2009). Basic Econometrics Mc Graw-Hill International Edition.
Guttentag, J. & Herring, R. (1984). Credit rationing and financial disorder. The Journal of Finance, 39(5), 1359-1382.
Ha, V. (2020). Does bank capital affect profitability and risk in Vietnam? Accounting, 6(3), 273-278.
Hadad, M. D., Satrio, W., Handoko, S., Yuniar, M., & Noviati, N. (2003). Kajian Mengenai Efektivitas Kebijakan Obligasi Rekap.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis. 7 ed. Essex: Pearson Education Limited.
Hakenes, H. & Schnabel, I. (2011). Bank size and risk-taking under Basel II. Journal of banking & finance, 35(6), 1436-1449.
Hart, O. D. & Jaffee, D. M. (1974). On the application of portfolio theory to depository financial intermediaries. The Review of Economic Studies, 41(1), 129-147.
Heid, F., Porath, D., & Stolz, S. (2004). Does capital regulation matter for bank behaviour? Evidence for German savings banks. In, Discussion Papers — Series 2: Banking and Financial Supervision: Deutsche Bundesbank.
Holmstrom, B., & Tirole, J. (1997). Financial intermediation, loanable funds, and the real sector. The Quarterly Journal of Economics, 112(3), 663-691..
Indonesia, B. (2004). Surat Edaran Bank Indonesia No. 6/23/DPNP tentang Sistem Penilaian Tingkat Kesehatan Bank Umum. Jakarta: Bank Indonesia
Indonesia, B. (2013). Peraturan Bank Indonesia No. (15/12/PBI/2013 Tentang Kewajiban Penyediaan Modal Minimum Bank Umum. Jakarta: Bank Indonesia
Jacques, K. & Nigro, P. (1997). Risk-based capital, portfolio risk, and bank capital: A simultaneous equations approach. Journal of Economics and business, 49(6), 533-547.
Jeitschko, T. D. & Jeung, S. D. (2007). Do well-capitalised banks take more risk? Evidence from the Korean banking system. Journal of Banking Regulation, 8(4), 291-315.
Jokipii, T. & Milne, A. (2008). The cyclical behaviour of European bank capital buffers. Journal of Banking & Finance, 32(8), 1440-1451.
Jokipii, T. & Milne, A. (2011). Bank capital buffer and risk adjustment decisions. Journal of Financial Stability, 7(3), 165-178.
Kim, D. & Santomero, A. M. (1988). Risk in banking and capital regulation. The Journal of Finance, 43(5), 1219-1233.
Koehn, M. & Santomero, A. M. (1980). Regulation of bank capital and portfolio risk. The Journal of Finance, 35(5), 1235-1244.
Marcucci, J. & Quagliariello, M. (2008). Is bank portfolio riskiness procyclical?: Evidence from Italy using a vector autoregression. Journal of International Financial Markets, Institutions and Money, 18(1), 46-63.
Marcus, A. J. (1984). Deregulation and bank financial policy. Journal of banking & finance, 8(4), 557-565.
Miles, D. (1995). Optimal regulation of deposit taking financial intermediaries. European Economic Review, 39(7), 1365-1384.
Milne, A. (2006). Optimal regulation of deposit taking financial intermediaries: A correction. European Economic Review, 50(2), 509-516.
Milne, A. & Whalley, A. E. (2001). Bank capital regulation and incentives for risk-taking. Cass Business School Research Paper.
Nachane, D. & Ghosh, S. (2001). Risk-Based Standards, Portfolio Risk and Bank Capital: An Econometric Study. Economic and Political Weekly, 36(10), 871-876.
Ovi, N., Bose, S., Gunasekarage, A., & Shams, S. (2020). Do the business cycle and revenue diversification matter for banks’ capital buffer and credit risk: Evidence from ASEAN banks. Journal of Contemporary Accounting & Economics, 100186.
Porteous, B. & Tapadar, P. (2005). Economic capital and financial risk management for financial services firms and conglomerates. Palgrave Macmillan.
Pyle, D. H. (1971). On the theory of financial intermediation. The Journal of Finance, 26(3), 737-747.
Quagliariello, M. (2007). Banks’ riskiness over the business cycle: a panel analysis on Italian intermediaries. Applied Financial Economics, 17(2), 119-138.
Rajan, R. G. (1994). Why bank credit policies fluctuate: A theory and some evidence. the Quarterly Journal of economics, 109(2), 399-441.
Raz, A. F. (2018). Risk and capital in Indonesian large banks. Journal of Financial Economic Policy, 10(1), 165-184.
Rime, B. (2001). Capital requirements and bank behaviour: Empirical evidence for Switzerland. Journal of banking & finance, 25(4), 789-805.
Rowe, D., Jovic, D., & Reeves, R. (2004). Basel II and economic capital. US Banker, April: 28-62.
Setyawati, I., Widyastuti, T., Suryati, A., & Hartani, N. (2019). Intellectual capital performance of Islamic banks in Indonesia: Towards competitive advantages. Management Science Letters, 9(12), 1999-2008.
Sharpe, S. A. (1990). Asymmetric information, bank lending, and implicit contracts: A stylized model of customer relationships. The Journal of Finance, 45(4), 1069-1087.
Shim, J. (2013). Bank capital buffer and portfolio risk: The influence of business cycle and revenue diversification. Journal of banking & finance, 37(3), 761-772.
Shrieves, R. E. & Dahl, D. (1992). The relationship between risk and capital in commercial banks. Journal of banking & finance, 16(2), 439-457.
Siddika, A. & Haron, R. (2019). Capital regulation and ownership structure on bank risk. Journal of Financial Regulation and Compliance, 28(1), 39-56.
Simpanan, L. P. (2018). Annual Report 2011. Jakarta: Lembaga Penjamin Simpanan
Sinkey, J. F. & Greenawalt, M. B. (1991). Loan-loss experience and risk-taking behavior at large commercial banks. Journal of Financial Services Research, 5(1), 43-59.
Stolz, S. & Wedow, M. (2011). Banks’ regulatory capital buffer and the business cycle: Evidence for Germany. Journal of Financial Stability, 7(2), 98-110.
Tan, Y., Floros, C., & Anchor, J. (2017). The profitability of Chinese banks: impacts of risk, competition and efficiency. Review of Accounting and Finance.
Van Roy, P. (2008). Capital requirements and bank behavior in the early 1990s: Cross country evidence. International Journal of Central Banking, 4(3), 29-60.
Yu, H. C. (2000). Banks’ Capital Structure and the Liquid Asset–Policy Implication of Taiwan. Pacific Economic Review, 5(1), 109-114.