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

DOI

10.2991/icbmr-17.2017.45How to use a DOI?

Keywords

Lerner Index; Bank Market Power; CAR; Commercial Bank behavior.

Abstract

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 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.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Raihan Mahendra
AU  - Muhammad Budi Prasetyo
PY  - 2017/11
DA  - 2017/11
TI  - The Analysis of Market Power and Bank Soundness on Islamic and non-Islamic Bank Behavior
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2017)
PB  - Atlantis Press
SP  - 490
EP  - 500
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-17.2017.45
DO  - 10.2991/icbmr-17.2017.45
ID  - Mahendra2017/11
ER  -