AN ANALYSIS OF STRUCTURE, BEHAVIOR AND BANKING PERFORMANCE OF ISLAMIC BANKING IN INDONESIA

Abstract

This study aims to examine the impact of market structure and market behavior on the Islamic banking performance in Indonesia. Using the SCP model framework, this study examines five largest Islamic banking in Indonesia. The result reveals that market behavior, Islamic banking performance, third party funds, the business scale and the target market of Islamic banking have a significant impact on the market structure of Islamic banking industry; the market structure, performance of Islamic banks, types of financing product, profit sharing rate and distribution scale have a significant impact on the behavior of Islamic banking industry; and the market structure, market behavior, human resources development, the quality of Islamic banks’ financing and the credibility of Islamic banking financing have a significant impact on Islamic banking performance in Indonesia. Keywords: Market Structure, Market Behavior, Market Performance, SCP Framework, Islamic Banking Industry, Indonesia Journal: Eurasian Journal of Economics and Finance