THE IMPACT OF BANKING ARCHITECTURE POLICY AND MACROECONOMIC CONDITION ON INDONESIAN BANKING CONCENTRATION AND MARKET STRUCTURE

Imam Asngari, Imam Asngari and Taufiq, Taufiq and Didik, Susetyo and Suhel, Suhel (2018) THE IMPACT OF BANKING ARCHITECTURE POLICY AND MACROECONOMIC CONDITION ON INDONESIAN BANKING CONCENTRATION AND MARKET STRUCTURE. International Journal of Economics and Financial Issues, 8 (1). pp. 118-125. ISSN 2146-4138

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Abstract

This research discusses the concentration, market structure, and factors affecting the market structure of banking industry in Indonesia. The purpose of the study is to examine and analyze the impact of IBA Policies and macroeconomic conditions on the market structure of banking industry. Analytical techniques use concentration ratios and panel data regression models to analyze the determinants of the market structure of the banking industry. The market structure is measured by the ratio of banking asset concentration. Data used in this study are from 2004 until 2015. Bank balance sheets data of 109 conventional banks published by Bank Indonesia and the Financial Services Authority. Data on economic growth and inflation were published by the Central Bureau of Statistics. Based on the ratio of CR4 and CR8 concentration, it is found that the Indonesian banking market structure is monopolistic competition. Market structure is effectively and significantly influenced by banking regulatory factors, IBA consolidation policies, behavior and performance, bank size, market share, cost efficiency, inflation and economic growth.

Item Type: Article
Uncontrolled Keywords: Consolidation, Banking Concentration, Monopolistic Competition, Macroeconomic Conditions
Subjects: H Social Sciences > HB Economic Theory > HB1-3840 Economic theory. Demography
Divisions: 01-Faculty of Economics > 60201-Development Economics (S1)
Depositing User: Dr Suhel Suhel
Date Deposited: 26 Apr 2023 00:22
Last Modified: 26 Apr 2023 00:22
URI: http://repository.unsri.ac.id/id/eprint/97290

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