Assessing Corporate Vulnerabilities in Indonesia A Bottom-Up Default Analysis

Under adverse macroeconomic conditions, the potential realization of corporate sector vulnerabilities could pose major risks to the economy. This paper assesses corporate vulnerabilities in Indonesia by using a Bottom-Up Default Analysis (BuDA) approach, which allows projecting corporate probabiliti...

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Bibliographic Details
Main Author: Chan-Lau, Jorge
Other Authors: Miao, Weimin, Miyajima, Ken, Shin, Jongsoon
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2017
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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100 1 |a Chan-Lau, Jorge 
245 0 0 |a Assessing Corporate Vulnerabilities in Indonesia  |b A Bottom-Up Default Analysis  |c Jorge Chan-Lau, Weimin Miao, Ken Miyajima, Jongsoon Shin 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2017 
300 |a 22 pages 
651 4 |a Indonesia 
653 |a Payment Systems 
653 |a Regimes 
653 |a Exports and Imports 
653 |a International Lending and Debt Problems 
653 |a External debt 
653 |a Business enterprises 
653 |a Money 
653 |a Foreign Exchange 
653 |a Standards 
653 |a Financial risk management 
653 |a Capital and Ownership Structure 
653 |a Goodwill 
653 |a Currencies 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Foreign exchange 
653 |a Government and the Monetary System 
653 |a Monetary economics 
653 |a Computational Techniques 
653 |a Hedging 
653 |a Model Evaluation and Selection 
653 |a Value of Firms 
653 |a Ownership & organization of enterprises 
653 |a Corporate Finance and Governance: General 
653 |a Currency 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Economic sectors 
653 |a International economics 
653 |a Corporate Finance 
653 |a Debts, External 
653 |a Corporate sector 
653 |a Banks and Banking 
653 |a Monetary Systems 
653 |a Financial regulation and supervision 
653 |a Money and Monetary Policy 
653 |a Financial services law & regulation 
700 1 |a Miao, Weimin 
700 1 |a Miyajima, Ken 
700 1 |a Shin, Jongsoon 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
856 4 0 |u https://elibrary.imf.org/view/journals/001/2017/097/001.2017.issue-097-en.xml?cid=44837-com-dsp-marc  |x Verlag  |3 Volltext 
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520 |a Under adverse macroeconomic conditions, the potential realization of corporate sector vulnerabilities could pose major risks to the economy. This paper assesses corporate vulnerabilities in Indonesia by using a Bottom-Up Default Analysis (BuDA) approach, which allows projecting corporate probabilities of default (PDs) under different macroeconomic scenarios. In particular, a protracted recession and the ensuing currency depreciation could erode buffers on corporate balance sheets, pushing up the probabilities of default (PDs) in the corporate sector to the high levels observed during the Global Financial Crisis. While this is a low-probability scenario, the results suggest the need to closely monitor vulnerabilities and strengthen contingency plans