Affiliation:
1. Dr., State Islamic University (UIN) Syarif Hidayatullah Jakarta
2. State Islamic University (UIN) Syarif Hidayatullah Jakarta
Abstract
Indonesian Islamic Banking Act requires conventional banks to spin-off their Islamic business units if they had fulfilled the spin-off criteria. Some of the Islamic business units had done the spin-off process although they are not fulfilling the spin-off criteria. The data showed that there is an efficiency decline after the spun-off. This study is going to examine the spin-off’s impact on the efficiency in spin-off banks. The method used in this paper is a difference-in-differences analysis. The sample used is four spin’s banks as treatment objects and two Islamic full-pledge banks as control objects. This research shows that there is an impact of spin-off policy on the efficiency in spin-off banks. There is an efficiency decrease in spin-off banks after the activities. It implies that the spin-off policy is not the only strategy that can be implemented. The policy-makers can choose other strategies to enhance the development of Islamic banking industry.
Publisher
LLC CPC Business Perspectives
Subject
Finance,Management of Technology and Innovation,Marketing,Organizational Behavior and Human Resource Management,Law
Reference34 articles.
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4. Al Arif, M. N. R. (2015b). Impact of Spin-off Policy on the Asset Growth on Indonesian Islamic Banking Industry. Journal of Islamic Economics, Banking and Finance, 11(4), 41-52.
5. Al Arif, M. N. R. (2015c). Keterkaitan Kebijakan Pemisahan Terhadap Tingkat Efisiensi Pada Industri Perbankan Syariah di Indonesia (The Relationship between Spin-off Policy and Efficiency in The Indonesian Islamic Banking Industry). Jurnal Keuangan dan Perbankan, 19(2), 295-304.
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