How Do Banks Set Their Propping Behavior Through Related Party Transactions During a Bail-In Regime? Evidence From an Emerging Market

International Journal of Economics and Management Pub Date : 2023-04-14 DOI:10.47836/ijeam.17.1.04

A. Achsanta, P. Pamungkas, Irwan Trinugroho, G. ., Francisca Sestri Goestjahjanti

引用次数: 0

Abstract

This study investigates the impact of the enactment of bail-in regimes in 2016 in Indonesia on bank owners' propping behavior. Based on Indonesian banking data for the period 2011–2020, we use the difference-in-differences method to examine whether related party transactions substantially increase or decrease after the introduction of bail-in as an indicator of propping. We find that while the requirement for sufficient capital allocated to shock absorbance increases, bank owners may provide capital via related deposits. These deposits are typically beneficial to bank stability, increase liquidity, and can act as a propping channel. However, the deposits are also more exposed to risks, and consequently decrease.

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自救制度下银行如何通过关联交易设定其支撑行为?来自新兴市场的证据

本研究探讨了2016年印尼实施纾困制度对银行所有者支持行为的影响。基于2011-2020年期间的印尼银行业数据，我们使用差异中的差异方法来检验引入内部纾困作为支撑指标后，关联方交易是否大幅增加或减少。我们发现，虽然对足够的资本配置的冲击吸收要求增加，但银行所有者可能通过相关存款提供资本。这些存款通常有利于银行的稳定，增加流动性，并可以作为一个渠道。然而，存款也更容易受到风险的影响，从而减少。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Economics and Management Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

1.80

自引率

0.00%

发文量

期刊介绍： The journal focuses on economics and management issues. The main subjects for economics cover national macroeconomic issues, international economic issues, interactions of national and regional economies, microeconomics and macroeconomics policies. The journal also considers thought-leading substantive research in the finance discipline. The main subjects for management include management decisions, Small Medium Enterprises (SME) practices, corporate social policies, digital marketing strategies and strategic management. The journal emphasises empirical studies with practical applications; examinations of theoretical and methodological developments. The journal is committed to publishing the high quality articles from economics and management perspectives. It is a triannual journal published in April, August and December and all articles submitted are in English. IJEM follows a double-blind peer-review process, whereby authors do not know reviewers and vice versa. Peer review is fundamental to the scientific publication process and the dissemination of sound science.