scholarly journals Competitiveness of Indonesian banking industry based on commercial bank business group: Panzar Rosse Model

2019 ◽  
Vol 7 (1) ◽  
pp. 37-48
Author(s):  
Fajra Octrina ◽  
Rike Setiawati
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Total Sample ◽  
Research Model ◽  
Input Variables ◽  
Capital Ownership ◽  
Research Show

The present research was aimed to investigating the competitiveness in Indonesian banking sector during the period of 2005 to 2016, to set the limit of the scope of the study a total sample is 84 banks. This research was conducted by grouping banks based on ownership and based on BUKU (General Bank based on Business Activities). The study also aimed to analyze the banking competitiveness based on classification of banks and groups of capital ownership. The study was conducted by evaluating the value of H-statistic for the research model comprising of three input variables, namely funds, labors and capital. The results of the research show that the market of banking industry in Indonesia is classified as monopolistic competition. The limitation of this study is that this study only looks at the competition variable, and has not seen its relationship with other variables. In subsequent studies, it is expected to conduct research related to competition and relate it to other variables, such as market share or level of market concentration.

scholarly journals Effect of Governance on the Efficiency of the Indonesian Banking Industry

2020 ◽  
Vol 15 (1) ◽  
pp. 93
Author(s):  
Fransiska Novina Hayu Indrianti ◽  
Sutrisno T. ◽  
Erwin Saraswati
Keyword(s):  
Gender Differences ◽  
Resource Dependence ◽  
Banking Sector ◽  
Banking Industry ◽  
Academic Research ◽  
Total Sample ◽  
Resource Dependence Theory ◽  
Banking Efficiency ◽  
Dependence Theory ◽  
Dea Efficiency

This study aims to examine observations and determine the effects of corporate governance on the efficiency of the Indonesian banking sector. The research calculated DEA efficiency and performed logistic regression, with a total sample of 150 observations. Results show that independent commissioners, the educational level of commissioners, the board of commissioners meeting, and the term of office of the commissioners all have a significant impact on improving the efficiency of the banking industry. Conversely, the large number of commissioners as well as the gender differences among them do not have any effect on banking efficiency. These findings indicate that authorities should not focus on the size of the board and the gender differences among the board commissioners in finding ways to increase or decrease a firm’s efficiency. The results of this study can contribute to academic research through agency theory and resource dependence theory as well as provide insights that can be used by practitioners. Keywords: Governance; banking efficiency; DEA

scholarly journals Relationship between competition and efficiency in the Czech banking industry

2013 ◽  
Vol 61 (7) ◽  
pp. 2701-2707 ◽  
Author(s):  
Iveta Řepková ◽  
Daniel Stavárek
Keyword(s):  
Positive Relationship ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Empirical Literature ◽  
Data Envelopment ◽  
Reverse Effect ◽  
Banking Competition ◽  
Johansen Cointegration Test ◽  
The Relationship

The aim of the paper is to estimate the relationship between competition and efficiency in the Czech banking industry in the period 2001–2010. The theoretical definition and literature review of the relationship between banking competition and efficiency is included. Lerner index and Data Envelopment Analysis were used to estimate the degree of competition and efficiency in the Czech banking sector. The market structure of the Czech banking industry was estimated as a monopolistic competition and it was found a slight increase in the competition in the banking sector. The efficiency of the Czech banks increased in the analysed period. Using a Johansen cointegration test, the paper contributes to the empirical literature, testing not only the causality running from competition to efficiency, but also the reverse effect running from efficiency to competition. The positive relationship between competition and efficiency was estimated in the Czech banking sector. These findings are in line with the Quiet Life Hypothesis and the suggestions that the increase of the competition will contribute to efficiency.

scholarly journals The Degree of Competition in the UAE Banking Industry

2017 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
George Owusu Antwi ◽  
Rachna Banerjee ◽  
Amal Abeer Mohammed ◽  
Mariam Juma Muna-Habib
Keyword(s):  
Market Structure ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Balance Sheet ◽  
Competitive Environment ◽  
Input Price ◽  
Financial Products ◽  
Long Run ◽  
Banking Market

This paper has made an attempt to assess the degree of competition (or market structure) in the UAE banking sector using the H-statistics established by Panzar-Rosse (1987). Data of six years (2009-2015) have been extracted from various balance sheet and income statements of the banks. Pooled OSL estimator was used to obtain the coefficient. The inputs prices were found to be significant except the input price of labor. Total asset was registered to be positively significant. All other variables were not significant. The results of the study reveal that the UAE banking market structure is characterized by the monopolistic competition. That is, banks earned their revenue as if operating under conditions of monopolistic competition during this period. A robust check was performed to test for validity of PR-model. The results yield E-statistic which is consistent with long-run equilibrium. It is believed that both the small and the larger banks operate relatively equal more in a competitive environment. We recommend that UAE should develop new financial products and services that will provide convenience to customers while improving profitability.

scholarly journals Determinan Efisiensi Perbankan BPR Syariah Indonesia

Akuntabilitas ◽  
2021 ◽  
Vol 14 (1) ◽  
pp. 27-42
Author(s):  
Isnan Murdiansyah
Keyword(s):  
Maximum Level ◽  
Total Sample ◽  
Spearman Correlation ◽  
Tobit Regression ◽  
Health Capital ◽  
Inhibiting Factors ◽  
Analysis Technique ◽  
Spearman Correlation Test ◽  
Input Variables ◽  
Capital Ownership

This research aims to determine how the level of efficiency is measured by the DEA method and what the inhibiting factors are, how the variables of the level of profitability, level of complexity, level of health, capital ownership can affect the level of efficiency and its relationship with CAMEL. The research is located in the province of East Java with a total sample of 77 samples. The analysis technique used is tobit regression and Spearman correlation. The results showed that the level of efficiency of BPR Syariah in East Java was very fluctuating and the management of the input variables had not yet reached the maximum level when compared to the output variables which were the results of the management of these input variables. The results of the Spearman correlation test show that the level of efficiency is related to CAMEL because in CAMEL there is also an efficiency component even though the weighting value is small. Overall, it can be concluded that the level of perfect efficiency can be achieved not only by comparing the input and output variables optimally but also considering other factors outside of these variables. 

scholarly journals VARIABEL KEUANGAN YANG MEMBEDAKAN TINGKAT LIKUIDITAS BANK UMUM DI BURSA EFEK INDONESIA

2017 ◽  
pp. 4137
Author(s):  
A.A.AYU DIAH AMBARAWATI ◽  
I Gusti Bagus Wiksuana ◽  
Luh Gede Sri Artini
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Total Sample ◽  
Financial Ratios ◽  
Classification Error ◽  
Research Model ◽  
Financial Ratio ◽  
Independent Variables ◽  
Discriminant Model ◽  
Analysis Technique

This research developed a research model that aims to explain financial ratio that can differentiate the liquidity level of commercial banks, and identify the financial ratios which among the financial ratios that sever the most dominant to sever the liquidity level of banks listed on the IDX period 2010-2014. The independent variables in the research are bank financial ratios of bank size, NWC, CAR, ROA, ROE and NPL. Dependent variable used in this research is liquidity ratio with Loan to Deposit Ratio (LDR) indicator. The data analysis in this research  uses discriminant analysis technique. Based on discriminant test with simultaneous method, the discriminant model of Unstandardized Canonical Discriminant Function (UCDF) can classify two groups of commercial banks based on their discriminant value by exactly 69.2% of the total sample or classification error of 30,8%. The result of research indicate from the six independent variables in this research, only 3 (three) variables have significance value <0,1 so it can sever liquidity level of commercial bank. Variables that can differentiate the liquidity level of the commercial banks are CAR (sig = 0.061), NPL (sig = 0.067) and NWC (sig = 0.074). CAR variable with the lowest significance value shows that the most dominant variable  sever the liquidity level of commercial banks listed BEI.

scholarly journals Analisis Pendapatan Non Halal Perbankan Syariah Di Indonesia: Sumber Dan Penggunaannya

2019 ◽  
Vol 4 (2) ◽  
pp. 159
Author(s):  
Rudy Hartanto ◽  
Irena Paramita Pramono ◽  
Pupung Purnamasari
Keyword(s):  
Commercial Bank ◽  
Financial Institutions ◽  
Banking Industry ◽  
Total Sample ◽  
The Other ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Business Unit ◽  
Other Hand ◽  
Data Documentation

The existence of the regulation for Islamic banking causes it to conduct its activities by the guidance of Islamic principles which avoid some non-halal sources of income. On the other hand, the transactions between Islamic banking and conventional banking are unavoidable because conventional financial institutions still dominate all transactions in each country. This means that non-halal sources of income cannot be avoided, by the way of the transaction is done. This research aims to analyze on the sources of income and its distribution of the non-halal funds of Islamic Banks in Indonesia. This research is quantitative. The method of collecting data documentation uses data from 2015-2017 with a total sample of 102 Islamic banks. The results show that there were differences in the average non-halal funds of Islamic Commercial Banks with Islamic Business Unit Bank. In addition, this study shows that Islamic commercial bank tends to have non-halal funds bigger than Islamic Business Unit Bank. On the other hand, the result shows that non-halal funds sources in the banking industry are dominated by interest income from another conventional bank and the using of non-halal funds is dominated by social activities.

scholarly journals Estimation of the competitive conditions in the Czech banking sector

2011 ◽  
Vol 59 (2) ◽  
pp. 299-306 ◽  
Author(s):  
Daniel Stavárek ◽  
Iveta Řepková
Keyword(s):  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Necessary Condition ◽  
Banking Competition ◽  
The Czech Republic ◽  
Full Sample ◽  
Empirical Industrial Organization ◽  
Banking Market ◽  
Competition Level

The paper uses New Empirical Industrial Organization approach, especially Panzar-Rosse model to estimates the level of competition of the banking industry in the Czech Republic during the period 2001–2009. We apply Panzar-Rosse model to estimate H statistic for a panel of 15 banks, which represent almost 90 % of the market. This paper also measures and compares the degree of banking competition in two sub-periods, 2001–2005 and 2005–2009, in order to investigate development of the competitive structure of the Czech banking industry. We found that the market was in equilibrium during most of the estimation period, which is a necessary condition for sound evaluation of the competition level. While the market can be described as perfectly competitive in 2001–2005, the intensity of competition decreased after joining the EU in 2004 and the market can be characterized as one of monopolistic competition in 2005–2009. The monopolistic competition in the Czech banking market was also revealed if the full sample 2001–2009 is considered.

scholarly journals Competition and Concentration in Bangladeshi Banking Sector

2016 ◽  
Vol 5 (1) ◽  
pp. 16-29
Author(s):  
Anwar Hossain Repon ◽  
Zahidul Islam
Keyword(s):  
Market Structure ◽  
Concentration Ratio ◽  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Market Concentration ◽  
Sample Period ◽  
Banking Competition ◽  
The Past ◽  
Bank Concentration

The purpose of this paper is to investigate the market structure and degree of concentration of Bangladeshi banking industry. The study measured market concentration by using widely recognized measures like k-bank concentration ratio and Herfindahl-Hirchman Index (HHI). It evaluates market structure by applying Panzar-Rosse Model over 8 years period from 2006 to 2013. The result of concentration measures indicates a decreasing trend and low level of market concentration in Bangladeshi banking industry over the sample period. The panzer-Rosse “H-Statistic” suggests that banks in Bangladesh are operating under monopolistic competition. Present paper contributes to a burgeoning literature on banking competition that has evolved significantly over the past periods on a developing country perspective like Bangladesh.

Whither competition in Malaysia’s banking industry ex post a restructuring

2018 ◽  
Vol 45 (2) ◽  
pp. 263-282 ◽  
Author(s):  
Tinfah Chung ◽  
Ariff Mohd
Keyword(s):  
Banking Sector ◽  
Monopolistic Competition ◽  
Banking Industry ◽  
Banking System ◽  
Banking Competition ◽  
Data Set ◽  
Middle Income ◽  
Content Type ◽  
Documentary Analysis ◽  
Ex Post

Purpose The purpose of this paper is to report how banking competition has fared ex post a major consolidation exercise completed during 2002-2004, which led to a complete restructuring of the sector in Malaysia. Nothing is known about the competitiveness of banking system ex post a major consolidation of banks in any country including Malaysia, a middle-income economy. Design/methodology/approach The authors apply two models, the Panzar and Rosse (1997) and the Lerner index (1934). The two competitiveness measures are quite refined, well received by researchers, but has yet been applied to measure banking sector competitiveness of a middle-income country to characterize post-merger behavior using post-global-crisis data set. The data were complemented by documentary analysis, including brand documents, descriptions of internal processes and copies of employee magazine articles. Findings The results indicate that, after 11 years of consolidation, the banking sector is not operating under perfect or monopolistic competition. Malaysia’s banking industry continues to benefit the charter holders at increasingly lower level because a cartel-like environment still provides trade-off of competition costs before 2002/2004 with the costs from a cartel-like industry structures now. There is only a weak evidence that, in recent years, the banking sector is moving toward more competition. Research limitations/implications The chosen area of research is to test the response of the banking sector ex post consolidation after a crisis. It enables researcher to compare results with those of other countries and may not be generalizable. Practical implications The findings reported in this study using corroborating measures for the first time, appear to suggest increasing concentration from consolidation may lead to the undesirable cartel-like industry structure where the exercise of market power in the name of stability may not be welfare promoting. Originality/value This paper fulfills an identified need to study how the banking sector has performed ex post consolidation after a crisis.

Pendapatan Non Halal Perbankan Syariah di Indonesia: Analisis Sumber dan Penggunaannya

2019 ◽  
Vol 4 (2) ◽  
pp. 51
Author(s):  
Rudy Hartanto ◽  
Irena Paramita Pramono ◽  
Pupung Purnamasari
Keyword(s):  
Commercial Bank ◽  
Financial Institutions ◽  
Banking Industry ◽  
Total Sample ◽  
The Other ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Business Unit ◽  
Other Hand ◽  
Data Documentation

The existence of the regulation for Islamic banking causes it to conduct their activities by the guidance of Islamic principles which avoid some non-halal sources of income. On the other hand, the transactions between Islamic banking and conventional banking are unavoidable because conventional financial institutions still dominate all transactions in each country. Means that non-halal sources of income cannot be avoided, by the way of the transaction is done. This research aims to analyze the sources of income and its distribution of the non-halal funds of Islamic Banks in Indonesia. This research is quantitative. The method of collecting data documentation uses data from 2015-2017 with a total sample of 102 Islamic banks. The results show that there were differences in the average non-halal funds of Islamic Commercial Banks with Islamic Business Unit Bank. In addition, this study shows that Islamic commercial bank tends to have non-halal funds bigger than Islamic Business Unit Bank. On the other hand, the result shows that non-halal funds sources in the banking industry are dominated by interest income from another conventional bank and the using of non-halal funds is dominated by social activities.

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