Author : M Nur Rianto Al Arif (Universitas Islam Negeri Syarif Hidayatullah Jakarta), M Arief Mufraini (Universitas Islam Negeri Syarif Hidayatullah Jakarta), M Agung Prabowo (Universitas Sebelas Maret)
Abstract : After the enactment of Law 21 in 2008 that stated about the spin-off of Islamic banking units, some Islamic business units had done the spin-off. This led to an increase in the number of fullfledged Islamic banks.
This study examines the relationship among spin-offs, market structure, and efficiency in the Islamic banking industry. We find a difference in efficiency between spin-off banks and non-spin-off banks.
The increasing number of full-fledged Islamic banks does not mean that performance (measured by efficiency) will increase. These results show the opposite result with the goal of spin-off policy, which is to enhance the performance of Islamic banks.
Keywords: Efficiency, Islamic Banks, Market Structure, Spin-Off
Journal : Emerging Markets Finance and Trade Volume 56 Issue 2 2020
Link : https://doi.org/10.1080/1540496X.2018.1553162