Spin-off and Social Funds’ Productivity of Islamic Banking Industry in Indonesia

DOI

10.2991/iconprocs-19.2019.2How to use a DOI?

Keywords

Islamic Bank, Social Fund, Spin-off, Productivity

Abstract

Islamic banking Act in Indonesia requires to manage the financial funds and social funds simultaneously. In the case of spin-off Islamic Banks, the fund manager is separate from the parent company, including in managing social funds, e.g. zakah, infaq, and sadaqah. This study is going to investigate the spin-off's impact on the social funds' productivity in spin-off Islamic Banks. The method used in this paper is the Malmquist Productivity Index (MPI) test for annual data from the period 2005 to 2017. The samples used is two spin-off Islamic banks as the rest are established with conversion or acquisition models. The results show that productivity changes increased after the spin-off decision and was influenced by technological changes. However, the spin-off decision hasn’t a significant impact on social funds' productivity in Islamic banks. It implies that independence in managing resources supports the Islamic banks' performance, especially for social funds.

Copyright

© 2019, 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/).

Download article (PDF)

TY  - CONF
AU  - Zulfikar Bagus Pambuko
AU  - Nurodin Usman
AU  - Lilik Andriyani
PY  - 2019/05
DA  - 2019/05
TI  - Spin-off and Social Funds’ Productivity of Islamic Banking Industry in Indonesia
BT  - Proceedings of the First International Conference on Progressive Civil Society (ICONPROCS 2019)
PB  - Atlantis Press
SP  - 7
EP  - 10
SN  - 2352-5398
UR  - https://doi.org/10.2991/iconprocs-19.2019.2
DO  - 10.2991/iconprocs-19.2019.2
ID  - Pambuko2019/05
ER  -