The Response of Financial Performance to The Market Power of Islamic Banking in Indonesia

Signifikan: Jurnal Ilmu Ekonomi Pub Date : 2022-10-06 DOI:10.15408/sjie.v11i2.26777

Chajar Matari Fath Mala, M. N. Hosen, M. N. R. Al Arif

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Abstract

market power of Islamic banking in Indonesia. This study contributes to filling the gap in the literature by combining the variables under the analysis of impulse response friction (IRF) about the relationship between market power, efficiency, liquidity, profitability, and stability. The data of this study covered Islamic banking in Indonesia from the period January 2010 to 2019 and used IRF from the VAR/VECM panel. This study found that shock/innovation of market power of Islamic banking in Indonesia is responded positively by efficiency, liquidity, and profitability. Meanwhile, financial stability responds negatively to shock/innovation of market power. These findings suggest that innovation in market power in Indonesian Islamic banking will lead to an increase in efficiency, liquidity, and profitability. This result poses a dilemma because competition increases stability but reduces efficiency, liquidity, and profitability. The balance between market power and stability at the macro and industrial levels becomes crucial because it is necessary to maintain the financial system’s stability and national economic growth.How to Cite:Mala, C. M. F., Hosen, M. N., & Al Arif, M. N. R. (2022). The Response of Financial Performance to The Market Power of Islamic Banking in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 11(2), 415-424. https://doi.org/10.15408/sjie.v11i2.26777.JEL Classification: G18, G21, G28

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财务绩效对印尼伊斯兰银行市场支配力的响应

伊斯兰银行在印尼的市场支撑力本研究将冲击响应摩擦(IRF)分析下的市场势力、效率、流动性、盈利能力和稳定性之间关系的变量结合起来，填补了文献的空白。本研究的数据涵盖了2010年1月至2019年期间印度尼西亚的伊斯兰银行业，并使用了VAR/VECM小组的IRF。本研究发现，印尼伊斯兰银行市场力量的冲击/创新会受到效率、流动性和盈利能力的积极响应。同时，金融稳定对市场力量的冲击/创新负相关。这些发现表明，印尼伊斯兰银行市场力量的创新将导致效率、流动性和盈利能力的提高。这一结果造成了一个困境，因为竞争增加了稳定性，但降低了效率、流动性和盈利能力。市场力量与宏观和行业层面的稳定之间的平衡变得至关重要，因为这是维持金融体系稳定和国民经济增长所必需的。如何引用:Mala, c.m.f.， Hosen, m.n.r.， Al Arif, m.n.r.(2022)。财务绩效对印尼伊斯兰银行市场支配力的响应。意义[j] .经济研究，11(2)，415-424。https://doi.org/10.15408/sjie.v11i2.26777.JEL分类:G18, G21, G28

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Signifikan: Jurnal Ilmu Ekonomi

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