The Structure – Performance of Indonesian Banking Industry
This paper employs the test developed by Berger (1995) to investigate the relationship between concentration and performance for the Indonesian banking market. In this paper, the models incorporate X-efficiency, scale efficiency, and measures of concentration and market share to test the market-powe...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2015
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/29817/ |
| _version_ | 1848793858490499072 |
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| author | Setyawan, Mohammad Irwan |
| author_facet | Setyawan, Mohammad Irwan |
| author_sort | Setyawan, Mohammad Irwan |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper employs the test developed by Berger (1995) to investigate the relationship between concentration and performance for the Indonesian banking market. In this paper, the models incorporate X-efficiency, scale efficiency, and measures of concentration and market share to test the market-power and efficient-structures hypotheses in the Indonesian banking sector. The panel data estimation was used to test the models. These hypotheses have different implications for regulation. The foundation of anti-trust agreement is established on the market-power hypothesis. On the contrary, the efficient-structure hypothesis rejects the view of the anti-trust regulation. A failure to understand this relationship may lead to undesired policy implications.
In general, the findings suggested that the structure of the Indonesia banking system has no influence on the profitability of the banks. However, after separating the sample, there is some support for the relative market power hypothesis for the foreign-exchange banks and the non-foreign exchange banks. Therefore, further research in this area is needed to comprehensively address the structure-performance relationship in the Indonesian banking sector. The authorities need to devote their resources to understand the unique characteristics of each banking groups. |
| first_indexed | 2025-11-14T19:06:59Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-29817 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:06:59Z |
| publishDate | 2015 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-298172017-10-19T14:47:34Z https://eprints.nottingham.ac.uk/29817/ The Structure – Performance of Indonesian Banking Industry Setyawan, Mohammad Irwan This paper employs the test developed by Berger (1995) to investigate the relationship between concentration and performance for the Indonesian banking market. In this paper, the models incorporate X-efficiency, scale efficiency, and measures of concentration and market share to test the market-power and efficient-structures hypotheses in the Indonesian banking sector. The panel data estimation was used to test the models. These hypotheses have different implications for regulation. The foundation of anti-trust agreement is established on the market-power hypothesis. On the contrary, the efficient-structure hypothesis rejects the view of the anti-trust regulation. A failure to understand this relationship may lead to undesired policy implications. In general, the findings suggested that the structure of the Indonesia banking system has no influence on the profitability of the banks. However, after separating the sample, there is some support for the relative market power hypothesis for the foreign-exchange banks and the non-foreign exchange banks. Therefore, further research in this area is needed to comprehensively address the structure-performance relationship in the Indonesian banking sector. The authorities need to devote their resources to understand the unique characteristics of each banking groups. 2015-09 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/29817/2/The%20Structure%20-%20Performance%20of%20Indonesian%20Banking%20Industry.pdf Setyawan, Mohammad Irwan (2015) The Structure – Performance of Indonesian Banking Industry. [Dissertation (University of Nottingham only)] Banking Efficiency Indonesia Profitability Structure |
| spellingShingle | Banking Efficiency Indonesia Profitability Structure Setyawan, Mohammad Irwan The Structure – Performance of Indonesian Banking Industry |
| title | The Structure – Performance of Indonesian Banking Industry |
| title_full | The Structure – Performance of Indonesian Banking Industry |
| title_fullStr | The Structure – Performance of Indonesian Banking Industry |
| title_full_unstemmed | The Structure – Performance of Indonesian Banking Industry |
| title_short | The Structure – Performance of Indonesian Banking Industry |
| title_sort | structure – performance of indonesian banking industry |
| topic | Banking Efficiency Indonesia Profitability Structure |
| url | https://eprints.nottingham.ac.uk/29817/ |