Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 05 April 2021

Measurement of Competitiveness and Market Concentration of Indonesian Banking Sharia

Paulina

STIE Indonesia Banking School, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.04.02.341

Pages: 10-21

Keywords: Competitiveness, Sharia Banking, Murabahah

Abstract

This study aims: (1) The extent of competitiveness of sharia banking in Indonesia's current economic development; (2) How far the strength of the sharia banking market in Indonesia today. The research conducted to measure the competitiveness of sharia banking in Indonesia and market forces encountered, using the observation period 2010-2016, and the data used is time series and cross section data. The research design used in research is quantitative research, by using model Lerner Index, PR-H Statistics Model, and multiple regression. Based on the results of the study, 1. Using the Lerner index model, for 10 Indonesian sharia banks, especially murabahah products with observation period 2010 - 2016, shows that the competitiveness of Indonesian sharia banks is still very low. The Lerner index for each sharia banks with competitiveness of murabahah products is Bank Mega Sharia, Bank BRI Sharia, Maybank and BSM. As for other sharia banks is still very low; 2. The measurement of market forces using the PR-H Statistics model, murabahah products of Indonesian sharia banks during 2010-2016 fall into the category of the monopolistic competition market. This indicates that, the murabahah product of each sharia banks is basically almost the same, only slightly differentiated by the deficited products in such a way between one bank and another bank; 3. Regression result model of factors affecting competitiveness, only ROA variable that influence to competitiveness, it shows that ROE variable, capitalization and efficiency not become determinant of competitiveness of a bank, especially for murabahah product.

References

  1. Abduh, M (2017), Competitive Condition and Market Power of Islamic Banks in Indonesia. International Journal of islamic and Middle Eastern Finance and Management. Vol.10 Iss 1 pp

  2. Abdul & Sufian (2008), Market Structure and Competition in Emerging Market: Evidence from Malaysian Islamic Banking Industry. Munich Personal RePEc Archive MPRA No.12126 : 1-23

  3. Ariss, Turk (2010). Competitive Conditions in Islamic and Conventional Banking : a Global Perspective. Review of Financial Economics, 19: 101-108

  4. Berger, T., & Demirglic,Kunt,A (2009). Financial Institutions and Markets Acrros Countries and Over Time: Data and Analysis, World Bank Policy Research Working Paper, 4943

  5. Berger, A.N.,Klapper,L.F & Turk Arris,R (2009). Bank Competition and Financial Stability, Journal of Financial Services Research 35: 99-248

  6. Bikker, B, et. al (2006). Misspesification of The Panzar Rosse Model: Assesing Competition in The Banking Industry. De Nederlanche Bank NV Working Paper, No.114

  7. Bikker, J.A & Bos,J.W.B (2008). Bank Performance: A Theoritical and Empirical Framework for The Analysis of Proitability, Competition and efficiency. Routledge International Studies in Money and Banking, New York

  8. Daryanto, Arief & Hafizrainda, Yundy (2010). Quantitative models models: for local economic development planning: concepts and applications. IPB press

  9. Ekananda, Mahyus (2016). Analysis of Econometric Data Panel. Mitra Wacana Media, Jakarta

  10. Gujarati, Damodar N (2010), Essential of Econometrics. Fourth Edition, Mc.Graw Hill Education, New York

  11. Hakim, Abdul (2014). Introduction to Econometrics with Eviews Application. Ekonsia Press, Indonesian Islamic University

  12. Jean-Michel Sahut, Mehdi Milli & Maroua Ben Krir (2012). Factors of Competitiveness of Islamic Banks in The New financial Order, Working Paper IDEAS Repec: 1-15

  13. Manurung, Jonni & Manurung, Hayman, et all (2005). Econometric : Theory & Applications. Elex Media Computindo

  14. Panzar, J & J.Rosse (1987). Testing for Monopoly Equilibrium. Journal of Industrial economics, 35: 443-56

  15. Pyndick & Rubinfeld (2010), Microeconomics, 7th edition, Pearson Education

  16. Risfandy, et.all (2016). Daya Saing Bank Sharia di sebuah negara Religius : temuan Empirik dari Indonesia. Jurnal Keuangan dan Perbankan, Vol. 20, No.2 Mei 2016, hlm.282-291

  17. Sahut, J.M & Krir, M.B (2012), Factors of Competitiveness of Islamic Banks in the New Financial Order. Working Paper IDEAS Repec : 1-15

  18. Soedarmono, W.,Machrouh,F.,Tarazi,A (2014). Bank Market Power, Economic Growth and Financial Stability : Evidence form Asian banks. Journal of Asian Economic 22(6): 460:470