Spin-off, market structure, and deposit funds: case in the Indonesian Islamic banking industry

Mohammad Nur Rianto Al Arif (Universitas Islam Negeri (UIN) Syarif Hidayatullah, Jakarta, Indonesia)

Economic Journal of Emerging Markets
Volume 10 Issue 2, 2018

The regulator had imposed some Islamic business units to do the spin-off after the enactment of the Islamic banking act (The Act No. 21 of 2008). The aim of this research is going to examine the relationship between spin-off, market structure, and deposit funds. Regression with panel data was using as a tools of analysis. The result shows that there is a difference in deposit funds between the spin-off banks and non-spin-off banks. Besides that, the result also indicates that there is a relationship between spin-off, market structure, and deposit funds in the Indonesian Islamic banking industry. The result implies that the regulator should a policy to accelerate the Indonesian Islamic banking industry.