Early Warning to Banking Crises in the Dual Financial System in Indonesia: The Markov Switching Approach

• Main Authors: Irfan Nurfalah, Aam Slamet Rusydiana, Nisful Laila, Eko Fajar Cahyono
• Format: Article PeerReviewed
• Language: English; Indonesian; English
• Published: King Abdulaziz University Scientific Publishing Center 2018
• Subjects: HG1-9999 Finance; HG1501-3550 Banking; HG1811-2351 Special classes of banks and financial institutions
• Online Access: http://repository.unair.ac.id/96483/1/Nisful%20Laila_Karil%2003%20%28Early%20Warning%20to%20Banking...%29.pdf; http://repository.unair.ac.id/96483/2/Nisful%20Laila_Peer%20Review%20003.pdf; http://repository.unair.ac.id/96483/3/Nisful%20Laila_Similarity%2003_Early%20Warning%20to%20Banking%20....pdf; http://repository.unair.ac.id/96483/; https://iei.kau.edu.sa/Pages-VOL-31-02.aspx; http://dx.doi.org/10.4197/Islec.31-2.10
• Institution: Universitas Airlangga

This research aims at detecting early indicators that cause conventional banking and Islamic banking crises, identifying the longest crisis period for both types of banks, and comparing the stability between the two kinds of banks. The method used is the Markov Switching Vector Autoregressive (MS-VA...