Journal of Central Banking Law and Institutions <p style="font-size: 14px;">Journal title : <strong>Journal of Central Banking Law and Institutions</strong><br />Initials : <strong>JCLI</strong><br />Frequency : <strong>Triannually (January, May, and September)<br /></strong>DOI : <strong>Prefix 10.21098</strong><br />Online ISSN : <a href="" target="_blank" rel="noopener"><strong>2809-9885</strong></a><br />Print ISSN : <a href="" target="_blank" rel="noopener"><strong>2827-7775</strong></a><br />Editor-in-chief : <a href="" target="_blank" rel="noopener"><strong>Dr.Perry Warjiyo</strong></a><br />Publisher : <strong>Bank Indonesia Institute</strong></p> <hr /> <p style="text-align: justify;">Journal of Central Banking Law and Institutions is an international peer-reviewed journal published by Bank Indonesia Institute. JCLI focuses on a range of topics examining the intersection of central banking law and institutions on monetary, financial system, and payment systems that include regulations, governance (transparency &amp; accountability), credibility, institutional politics, institutional arrangements, and institutional communication.</p> Bank Indonesia en-US Journal of Central Banking Law and Institutions 2827-7775 THE COVID-19 CONTAINMENT IN INDONESIA AND SOFT LAW: A RISK-TO-OBJECTIVE ANALYSIS <p>This article illustrates how Basel III, a soft law legal framework guiding how regulators supervise financial institutions in order to prevent and mitigate systemic financial crises, especially the requirement regarding the governance of sovereign debt, is being implemented in Indonesia. The analysis was done by scrutinising the relevant authority’s responses and monetary policy during COVID-19. Also, it examines whether the applicable regulations and other related policies align with the grand objectives of the financial sector. This article provides several important takeaways. First, benefiting from the soft traits of Basel III, the oversight authorities (OJK and BI) have tried to enshrine the government’s resilient and prudent financial state through flexibility. Second, instead of taking expansionary legal measures to stimulate the state’s income and limit the state’s expenses, BI and the government have worked together to contain the damage of the pandemic through a quasi-fiscal program (burden-sharing program, BSP). Third, the legislation of Law No. 3/2023 did not make the BI’s objective less risky. It also suggests that more could have been done to prevent the fiscal deficit, especially by the government, through fiscal consolidation (limiting or decreasing the state’s expenses).</p> Adi Ibnu Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 1 36 10.21098/jcli.v3i1.175 DO GENDER DIVERSITY AND CEO CULTURE AFFECT SUSTAINABILITY PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY? <p>This study investigates how gender diversity and CEO culture affect sustainability performance in the banking industry. The sample used in the study was drawn from listed banks on the floor of the NGX group. The data were obtained from the Bloomberg Database with 88 firm-year observations (2011 to 2018). The regression estimate is based on a panel data approach. We found that female directors’ and CEOs’ cultures have greater tendencies to enhance sustainability performance proxied by ESG. Thus, the findings provide additional insight into the existing literature on sustainability and diversity initiatives as well as the resource dependency theory. It also adds to the existing literature on sustainability reporting. The findings, moreover, allude to the initiatives of the regulatory authority in the industry that emphasise the need to have a diversified board that includes female directors and other forms of diversity, for example, ethnicity.</p> Adamu Idris Adamu Ismaila Yusuf Ahmed Jinjiri Bala Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 37 56 10.21098/jcli.v3i1.168 THE RESPONSE OF BRICS TRADE INTEGRATION TO GEOPOLITICAL RISKS <p>Mounting geopolitical risks have led over time to a reorientation of trade integrations across different economic blocs. As one of the increasingly dominant global blocks, the organisation comprised of Brazil, Russia, India, China, and South Africa (BRICS) has intensified their trade integration. Therefore, we conducted a thorough analysis of how BRICS countries’ multilateral trade integration responded to geopolitical risk events from January 1996 to December 2021. To achieve this, we utilized a sophisticated econometric method, specifically the cross-quantilogram approach, to analyse high frequency data due to their non-normal and fat-tailed features. Our study confirms the proposition that geopolitical risks strengthened trade integration within the BRICS bloc. Specifically, our findings show that the volume of exports from one economy to another responded positively at lower to medium quantiles of exports and lower geopolitical risks, considering a 12–36-month horizon. Moreover, we found that the quantity of exports from Russia to China was higher in the presence of higher geopolitical risks. Our study demonstrates that geopolitical risks can create a sense of shared identity and mutual interest among the BRICS countries, fostering greater cooperation and trade integration.</p> Kazi Sohag Md Monirul Islam Oleg Mariev Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 57 94 10.21098/jcli.v3i1.180 BANK INDONESIA’S ROLE IN ERADICATING CORRUPTION: ADOPTING THE WORLD BANK INITIATIVES <p>Bank Indonesia as the primary agent for maintaining state financial stability plays an essential role in combatting corruption through preventive and repressive measures. However, considering the poor state of corruption management, Indonesia requires a more strategic and measurable framework. In this case, The World Bank Group (WBG) has numerous methods for combatting corruption through structured initiatives. The overall goal of the programs is to achieve a high level of transparency as the central bank’s fundamental premise in dealing with corruption. Thus, by adopting the WBG guidelines and initiatives, Indonesia can gradually scale up its corruption eradication efforts. This study will further highlight three areas, namely: (i) the World Bank alternatives for controlling corruption; (ii) the role of Bank Indonesia in eradicating corruption; and (iii) adoption of the World Bank’s alternatives in strengthening Bank Indonesia’s efforts to eradicate corruption. The study uses normative legal research using a regulatory approach with secondary data collection. The results of the study show that Bank Indonesia has thoroughly adopted the World Bank’s initiatives. Nevertheless, BI still needs to optimise technology-based public transparency, enhance public involvement, and strengthen supervision of sectoral-based corruption risk in the future. </p> Rudi Natamiharja Febryani Sabatira Orima Melati Davey Yuga Narazua Khanza Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 95 128 10.21098/jcli.v3i1.32 DIGITAL TRANSFORMATION AND THE BANKING MARKET: FRIEND OR FOE? A COUNTRY-LEVEL STUDY <p>Countries’ digital transformation continues and yet the impact on the banking sector is unknown. This uncertainty might become even worse if banks start to compete among themselves to get ahead of digital lending and payment platforms. Competition among banks leads to lower lending rates and increased deposit rates. These smaller margins might lead to instability in the banking sector. We address the impact of digital transformation and bank competition on banking sector stability by looking at country-level data from 48 Asian economies. We integrate the moderating role of bank competition into the picture. The findings suggest that digital transformation leads to banking sector stability while bank competition results in banking sector fragility. During high competition within the banking sector, digital transformation lessens the overall banking sector stability and as competition declines, the relationship moves towards insignificance after falling below a moderate level of competition. These findings carry important policy implications. Countries should have control over banking sector competition and should at the same time move towards digital transformation to achieve larger goals like financial inclusion. Lower competition helps to avoid any negative impacts from digital transformation in a country.</p> Noureen A. Khan Mudeer Ahmed Khattak Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 129 152 10.21098/jcli.v3i1.167 IMPROVING DIGITAL BANKING THROUGH RISK ASSURANCE: TAM MODIFICATION ANALYSIS <p>The rapid growth of digital banks has been followed by changing customer behaviour patterns. On the other hand, customer perceptions of digital banks are that they still carry considerable risk. Therefore, the role of institutions in providing certainty and security guarantees for digital banking customers is very important. Based on this situation, this research explores what factors can encourage individuals to use digital banks, which are currently growing quite rapidly through the role of institutions. The Technological Acceptance Model (TAM) is used as a construct in exploring individual behaviour in reaction to technological innovation in digital banks. In addition, risk guarantees from government institutions are also explored as safeguarding customer security. The sample for this study were 977 digital bank users. Data was collected through a self-administered survey. The results show that perceived service quality (PSQ), service innovation (SI), perceived usefulness (PU), perceived ease of use (PEoU), attitude, and behavioural intentions are factors that encourage actual use of digital banking services. It is also known that perceived risk assurance moderates the relationship between attitude and behavioural intention. This research contributes to policy makers for the expansion of digital bank market share through appropriate marketing strategies for digital banks, as well as strategies to increase deposit insurance literacy.</p> Dwi Marlina Wijayanti Hasan Al-Banna Achmad Nurdany Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 153 176 10.21098/jcli.v3i1.172 BANK CREDIT GROWTH IN INDONESIA DURING THE COVID-19 PANDEMIC AND ITS REGULATIONS <p>Credit growth related to production, consumption, investment, exports, and imports is considered crucial for economic growth. The Covid-19 pandemic has had a major impact on the economies of countries in the world, as seen from a significant decline in credit growth. This study examines the effects of Economic Growth, Exchange Rate, Inflation, BI Rate, Third Party Funds (TPF), and Non-Performing Loans (NPL) on Banking Credit Growth in Indonesia during the COVID-19 Pandemic Period and regulations issued during that period. Analysis using multiple linear regression method using EViews 10 software with data type in the form of time series. The results of this study showed that only TPF growth had a significant effect. Simultaneously, the variables of Economic Growth, Exchange Rate, Inflation, BI Rate, NPL and Deposit Growth have a significant effect. The most dominant<br />influencing variable is deposit growth.</p> Abdul Aziz Sri Maulida Copyright (c) 2024 Journal of Central Banking Law and Institutions 2024-01-01 2024-01-01 3 1 177 202 10.21098/jcli.v3i1.47