<![CDATA[Objective: This study aims to analyze the development of research related to Islamic bank spin-offs using the Systematic Literature Review (SLR) approach.Research Design & Methods: A Systematic Literature Review (SLR) was conducted by analyzing 25 studies published in SINTA and Scopus indexed journals. The selected studies were categorized into five themes: regulatory compliance, market structure, performance, financing & third-party funds, and implementation challenges. Qualitative descriptive analysis was used to synthesize the findings and identify research gaps.Findings: The findings indicate that while spin-offs enhance Shariah compliance, they frequently impose a financial burden due to the 50% asset requirement. From a market perspective, newly spun-off banks experience difficulties in retaining customers and a competitive position. Although profitability tends to increase, operational efficiency declines due to higher costs and limited economies of scale. In addition, many UUS fail to meet capital requirements, leading to alternative strategies such as mergers or acquisitions.Implications & Recommendations: Policymakers need to reconsider the 50% asset requirement, potentially shifting to a fixed capital threshold. In addition, offering regulatory incentives may help strengthen newly spun-off banks. Future research should compare spin-offs, mergers, and acquisitions to determine the most effective strategies for growth in Islamic banking. Contribution & Value Added: This research provides a comprehensive synthesis of the dynamics of spin-offs, highlighting their impact on regulatory policy, market structure, and financial performance. The findings provide practical recommendations for policymakers and industry stakeholders to promote a more sustainable Islamic banking sector.]]>
Copyrights © 2025
