What is it about?

This study aims to analyze the influence of market structure on the profitability of the Islamic banking industry in Indonesia, especially after the enactment of the Islamic banking act. This research used panel regression with a random effect model. The result shows that market structure - proxies by market share (MS) and the concentration ratio (CR4)- does not affect the ​profitability of the Indonesian Islamic banking industry.

Featured Image

Why is it important?

The research on the relationship of market structure with performance in Islamic banks is still limited. So, this study will give a significant contribution to knowledge enrichment about the SCP hypothesis in the Islamic banking industry.

Perspectives

Writing this article was a great pleasure as it has co-authors with whom I have had long-standing​ collaborations.

Prof. Dr Mohammad Nur Rianto Al Arif
Universitas Islam Negeri Syarif Hidayatullah Jakarta

Read the Original

This page is a summary of: Market Share, Concentration Ratio and Profitability: Evidence from Indonesian Islamic Banking Industry, Journal of Central Banking Theory and Practice, May 2019, De Gruyter,
DOI: 10.2478/jcbtp-2019-0020.
You can read the full text:

Read

Contributors

The following have contributed to this page