The Analysis of Market Power and Bank Soundness on Islamic and non-Islamic Bank Behavior

Raihan Mahendra, Muhammad Budi Prasetyo
2017 Proceedings of the International Conference on Business and Management Research (ICBMR-17)   unpublished
The objective of this research is to determine the effect of bank market power and bank soundness on the behavior of Islamic and non-Islamic bank to collect and channel public funds during periods of 2011-2015. Using Lerner Index to measure bank degree of market power, and CAR as a measure of bank soundness, the result on Islamic bank showed a significant positive relationship only on bank channeling of funds. However, on non-Islamic bank the result showed a significant positive relationship on
more » ... bank collecting and channeling of funds. Bank collection and channeling of fund will be greater on when bank market power and bank level of soundness also rises.
doi:10.2991/icbmr-17.2017.45 fatcat:lhlvr3n4zrgtffib3d7wez7mb4