Building A Modern Financial System provides penetrating insights into the upheavals in Indonesia, and explains the kinds of policies that can lead to the development of a modern financial system in a large, relatively underdeveloped country. The study covers all facets of the financial system, emphasising the role of the monetary authorities, the transition from government-dominated to a predominantly private banking system, and the rapid expansion of the capital market. Indonesia is a particularly interesting case because its economy and financial system was in shambles in the mid-1960s owing to political adventurism and economic mismanagement. Until more recently sensible economic policies and growth-promoting reforms provided a sound financial system and a balanced expansion of agriculture and industry. However since the mid-1990's the stability of the Indonesian system has once again been called into question.For example, only government bonds were traded from the opening of the Korean Stock Exchange in 1956 until the mid-1960s. 79. We use ... Surabaya has cross-listed with JSE and the Bursa Paralel did not publish data on their very small trading. 80. ... Noerhadi compares investment loans by banks with equity and bond issues in the period 1988-1993 and rightly concludes that capital markets are challenging the dominance of the banking system in its provision of long-term loans.
|Title||:||Building a Modern Financial System|
|Author||:||David Cole, David C. Cole, Betty F. Slade|
|Publisher||:||Cambridge University Press - 1998|