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Chan-Lau, Jorge A.,

Assessing corporate vulnerabilities in Indonesia : a bottom-up default analysis / by Jorge A. Chan-Lau [and three others]. - 1 online resource (23 pages) : illustrations. - WP/17/97 .

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.

ISBN: 1475596510 9781475596519

Source: 1009368 MIL

Subjects--Topical Terms:
Finance--Indonesia.
Finance.
BUSINESS & ECONOMICS / Finance

Subjects--Geographic Terms:
Indonesia.

Index Terms--Genre/Form:
Electronic books.

LC Class. No.: HG187.I5

Dewey Class. No.: 332.0959809049