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Riani, Nadhifa Khansa
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FACTORS AFFECTING MARKET SHARE OF ISLAMIC COMMERCIAL BANK AND ISLAMIC BUSINESS UNIT IN INDONESIA Riani, Nadhifa Khansa
IQTISHADIA Vol 13, No 1 (2020): IQTISHADIA
Publisher : Ekonomi Syariah IAIN Kudus

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21043/iqtishadia.v13i1.5935

Abstract

The development of the islamic banking industry is still lagging behind the conventional banking industry. It can be seen from the market share of islamic banking which is relatively small compared to market share of conventional banking. This study aims to analyze the factors that affect the market share of Islamic Commercial Bank and Islamic Business Unit in Indonesia period 2013 ? 2018. Variables used in this study include the Third Party Fund (DPK), Capital Adequacy Ratio (CAR), number of offices, Non Performing Financing (NPF), inflation, and BI Rate. This study uses Error Correction Model (ECM). The results show that in the short-term model, DPK and number of offices has significant positive effect, while NPF and inflation has significant negative effect on market share. In the long-term model, DPK, CAR and number of offices has significant positive effect, while NPF and BI Rate has significant negative effect on market share.