Selection of Sharia Business Unit Separation Model at the Regional Development Bank: Internal and External Environment

DOI

10.2991/978-94-6463-176-0_19How to use a DOI?

Keywords

conversion; internal-external environment; merger; spin-off; UUS BPD

Abstract

This study will focus on Sharia Business Units of Regional Development Banks (UUS BPD) as UUS which are considered by KNEKS to be at least ready to face separation, because of the capital factor. The separation of UUS from the parent bank based on the Banking Law no. 21 of 2008 at the latest, UUS must be carried out by the end of 2023. Using Decision Matrix Analysis through the approach of internal environmental approach (financial, human resources, operational, marketing) and external environmental approaches (political, economic, technological, socio-cultural), the results of this study aim to provide consideration for the selection of a separation model for UUS BPD. The primary data of the study came from in-depth interviews and filling out questionnaires by expert practitioners from UUS BPD who had carried out a spin-off or conversion into a sharia commercial bank, regulatory practitioners, and other expert practitioners who are judged to have knowledge/experience related to the research theme. The main considerations in the selection of the UUS BPD separation model based on the internal environmental approach are financial and operational factors, the external environmental approach is the technological factor, and the internal-external environment is the financial and operational factor. The most optimal separation model based on the internal environment, external environment, and internal-external environment is the conversion model. The next option based on the external environment and the internal-external environment is a merger, and based on the internal environment approach is a spin-off. The last option is a spin-off based on the external environment and the internal-external environment, while based on the internal environment approach is a merger.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Ida Syafrida
AU  - Indianik Aminah
AU  - Taufik Awaludin
AU  - Enny Savitri
AU  - Syahril Hamid
PY  - 2023
DA  - 2023/06/19
TI  - Selection of Sharia Business Unit Separation Model at the Regional Development Bank: Internal and External Environment
BT  - Proceedings of the 4th International Conference on Islamic Economics, Business, Philanthropy, and PhD Colloqium (ICIEBP 2022)
PB  - Atlantis Press
SP  - 288
EP  - 299
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-176-0_19
DO  - 10.2991/978-94-6463-176-0_19
ID  - Syafrida2023
ER  -