TY  - JOUR
T1  - Merton Models: Mapping Default of Government Bank in Indonesia
AU - Munandar, Agus 
JO  - International Business Management
VL  - 9
IS  - 4
SP  - 532
EP  - 535
PY  - 2015
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2015.532.535
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2015.532.535
KW  - Probability default
KW  -government banks
KW  -Merton Model
KW  -financial crisis
KW  -sample
AB  - The objective of Basel II is to strengthen the financial system security by emphasizing on risk-based calculation of capital. Driven by Basel II, this study investigates the probability of default of government banks in Indonesia in the period of 2002-2010 using annually-published report of central bank (Bank Indonesia) with 4 government banks as the sample of research. The probability of default is measured by using Merton Model. The findings that measurement results using merton approach are empirically confirmed. In 2004, PT Bank Rakyat Indonesia Tbk which gets the lowest probability of default was announced as “The Best National Bank” in Indonesia by Bisnis Indonesia award. In 2008, the government banks have high probability default because financial crisis of 2008 (probability default >30%).
ER  -