(OCC 51) Revitalising Reserve Requirement In Banking Model: An Industrial Organisation Approach by Iman Gunadi and Cicilia A. Harun
The objective of reserve requirement as a policy tool is mainly to control money supply in the economy. However the changes of reserve requirement also affect banks interest rates. Thus the changes will have an effect on banking optimal behaviour in maximising profits. Using the industrial organisation approach this paper will evaluate the Indonesian banking…
(OCC 52) Endogenous Money A Structural Model of Monetary Base by Ho Dong Ching
In this paper a structural monetary base model is developed. An important feature of this approach is that the model combines three parts of the determinants of the monetary base. The three parts are the commercial bank the public and the central bank. Bank behaviour relies on an explicit specification of a maximum profit-seeking and…
(OCC45) Effective Financial System Stability Framework by Wimboh Santoso and Sukarela Batunanggar
This paper analyses the concept of financial system stability and how it is practiced as one of the key objectives of a central bank. The paper discusses five main topics related to financial system stability: (i) what is financial system stability and why it is important; (ii) central bank function in maintaining financial system stability;…
(OCC44) New Deposit Insurance Systems in East Asia by David K. Walker
The last decade has seen tremendous growth in the number of deposit insurance systems around the world. This has been particularly noticeable in East Asia driven by such factors as rapid financial system development economic crises and a general desire to improve depositor protection and financial stability. Deposit insurance systems have recently been introduced in…
(OCC43) Towards Achieving Financial Stability by Reserve Bank of Fiji
One of the main responsibilities of central banks is to ensure financial stability. In recents years the task is even more challenging with liberalisation and increasing integration with global markets. In this respect the SEACEN countries have learnt their lessons well by placing financial system stability as top priority and making concerted efforts to develop…
(OCC37) International Capital Movements from an Australian Perspective by Chris Becker
There has been recent interest in the role of capital flows in the process of exchange rate determination given the apparent breakdown of traditional relationships between fundamentals and currencies. This is true of the United States Euro area and Japan but also Australia. In this paper we do not attempt to settle the debate as…
(OCC38) Global Economic Slowdown: Macroeconomic Impact and Policy Options for SEACEN Countries by Ravindra Prasad Pandey / P. N. Weerasinghe
The synchronised economic downturn in the U.S. Euro area and Japan in 2001 mainly caused by a correction in the global IT sector and the events of September 2001 sharply reduced the export demand in most SEACEN countries causing deterioration in external trade activities. The resulting economic contraction in most SEACEN countries demonstrated the vulnerability…
(OCC39) A Successful Effort in Management of Corporate Debt Restructuring in Thailand: Lessons Learnt by Tumnong Dasri
To support the workout process and resolution of NPL problems the Thai authorities instituted a number of important policies under a general philosophy of maximising the creditors chances of getting repayment subject to the debtors ability to repay the loan. The multi-faceted framework involves amendments to the existing bankruptcy law and procedures as well as…
(OCC40) Inflation Forecasting in Bank Indonesia by Halim Alamsyah
Since the enactment of the New Central Bank Act in 1999 Bank Indonesia is mandated to pursue a single objective of achieving and maintaining the stability of the rupiah value primarily meant as low and stable inflation in the environment of a flexible exchange rate system. Such mandate calls for enhancement of capacity and ability…
(OCC41) Technological Investments in Payment Systems: Key Lessons for Project Management by Bambang S. Wahyudi
As many developing countries in the world are moving towards a free market economy the attainment of an efficient banking system becomes a top priority. A good working banking system allows private sector savings to be retained in the country which further promotes investments needed for growth. In addition an effective banking system helps price…