The Indonesian Financial System

The structure of the financial system in Indonesia is examined through the analytical lens of the system’s contribution to the growth, stability, and efficiency of the Indonesian economy. The focus is on the banking system and securities markets, which are the primary mechanisms for mobilizing savings and allocating investment funds. Five key policy issues are highlighted: (1) the level of bank capitalization; (2) the supervision and regulation of banks; (3) the structure of banking markets; (4) the deepening of securities markets; and (5) the supervision and regulation of securities markets.Financial systems;Banking;Stock markets;stock market, bond, banking system, foreign exchange, bonds, bond market, bank indonesia, financial system, capital adequacy, bank credit, equity capital, financial structure, foreign exchange exposure, state bank, financial markets, financial intermediaries, bank deposits, capital adequacy ratio, banking markets, derivative, bank failure, bank supervision, stock prices, stock exchange, bank finance, bank owners, international finance corporation, bond markets, international finance, bank lending, bank capital, banking services, domestic bond market, bank failures, bank exposure, government bond, financial sector, bank assets, stock market volatility, asian bond market, reserve requirements, bank exposures, emerging stock markets, banking sector, portfolio investment, state enterprise, bank liabilities, bank credits, bank debt, bond issues, equity market, rate bonds, domestic bond, stock price volatility, money market instruments, bank licenses, bearer bonds, hedge, banking assets, stock price, equity derivative, banking practices, equity derivatives, financial liberalization, settlement system, financial futures, international capital, problem loan, government bond markets, bankruptcy law, corporate bond market, bank solvency, marginal cost pricing, fixed rate bonds, bank soundness, bank margins, bank loan, stock returns, bank regulation, equity finance, international financial statistics, bank supervisors, bank shareholders, financial reform, banking supervision, international interest rates, macroeconomic stability, long-term bonds, corporate bond, private bank, bank balance sheets, international capital markets, stock market capitalization, foreign stock, bank capitalization, bank equity capital, bank derivative, bank stability, money market, international standards, stock warrants, term bonds, derivative market, bank equity, bank loans, bank insolvency, bank default, bank compliance, government bond market, portfolio valuation, hedging, derivative products, balanced budget, savings bank, bondholders