Spin-off policy and efficiency in the Indonesian Islamic banking industry
Open Access
- 15 January 2018
- journal article
- Published by LLC CPC Business Perspectives in Banks and Bank Systems
- Vol. 13 (1), 1-10
- https://doi.org/10.21511/bbs.13(1).2018.01
Abstract
Indonesian Islamic Banking Act requires conventional banks to spin-off their Islamic business units if they had fulfilled the spin-off criteria. Some of the Islamic business units had done the spin-off process although they are not fulfilling the spin-off criteria. The data showed that there is an efficiency decline after the spun-off. This study is going to examine the spin-off’s impact on the efficiency in spin-off banks. The method used in this paper is a difference-in-differences analysis. The sample used is four spin’s banks as treatment objects and two Islamic full-pledge banks as control objects. This research shows that there is an impact of spin-off policy on the efficiency in spin-off banks. There is an efficiency decrease in spin-off banks after the activities. It implies that the spin-off policy is not the only strategy that can be implemented. The policy-makers can choose other strategies to enhance the development of Islamic banking industry.Keywords
This publication has 20 references indexed in Scilit:
- Pengaruh Struktur Pasar Terhadap Profitabilitas Perbankan Syariah di IndonesiaEsensi: Jurnal Bisnis dan Manajemen, 2016
- Dampak Kebijakan Spin-off Terhadap Kinerja Bank SyariahAl-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 2016
- Efficiency and Profitability in The Indonesian Islamic Banking IndustryAl-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 2016
- How bank competition influences liquidity creationEconomic Modelling, 2016
- The Impact of Financial Liberalization on Islamic Bank's Efficiency in IndonesiaAl-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 2015
- Pengaruh Kebijakan Pemisahan Terhadap Laba Pada Bank BNI SyariahETIKONOMI, 2015
- SPIN-OFF AND ITS IMPACT ON THE THIRD PARTY FUNDS OF INDONESIAN ISLAMIC BANKING INDUSTRYEconomic Journal of Emerging Markets, 2014
- ASSESSING PROFIT EFFICIENCY OF ISLAMIC BANKS IN INDONESIA: AN INTERMEDIATION APPROACHJournal of Economics, Business, & Accountancy Ventura, 2011
- Disagreements and intra-industry spinoffsInternational Journal of Industrial Organization, 2010
- Market structure, conduct and performance: Evidence from the Bangladesh banking industryJournal of Asian Economics, 2008