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The aim of this paper is to evaluate the nature and changes of market concentration in the Malaysia's Islamic banking due to the restructuring of Islamic banking industry within the liberalization wave in the banking market. A total of 17 Islamic banks operating over the period of 2000-2010 had been considered. The structural approach framework was used to evaluate the nature and changes of market concentration in the Islamic banking industry in Malaysia. Under this approach, various market concentration indexes has been calculated from year to year basis as proposed by the industrial organizational field. Findings herein supported the structure-conduct-performance (SCP) paradigm where different concentration ratios have decreased over the study's period where this is reflected in the greater degree of competition in the Malaysia's Islamic banking industry. This study found an evidence that structural changes in the Islamic banking market has changed the market structure of the respective market from moderately concentrated to low concentrated market; whereby supporting the existence of competitive environment in the Malaysian Islamic banking market. Present study contributed to new knowledge in banking market concentration particularly for Islamic banking industry in the emerging economies such as Malaysia. Many past studies studying this issue had extensively examined the conventional banking system, but only several studies were on Islamic banking market. Hence, this study may enrich the existing literature on this issue, particularly for the Islamic banking industry. Policy recommendation from the findings; first, Malaysian Islamic banking industry needs a contestable market environment as to enable them to achieve better profit and efficient operation. Second, concentration ratios from this study can be used to identify the optimal number of banking firms in the Islamic banking industry.

ini memfokus kepada perbezaan upah jantina mengikut kategori pekerjaan, iaitu pekerja mahir, pekerja separa mahir dan pekerja tidak mahir. Kajian ini melibatkan dua model utama, iaitu model multinomial logit dan model upah. Di samping itu, persamaan pengasingan upah digunakan bagi menentukan peratusan sumbangan pemboleh ubah terhadap perbezaan upah jantina. Dapatan kajian menunjukkan peratus sumbangan pemboleh ubah yang terdapat dalam model upah atau dirujuk sebagai sumbangan faktor yang dapat dijelaskan adalah lebih rendah daripada sumbangan faktor yang tidak dapat dijelaskan yang dirujuk sebagai diskriminasi majikan. Di samping itu, sumbangan bias sampel yang dikaitkan dengan diskriminasi majikan dalam pengambilan pekerja yang bias terhadap wanita juga didapati penting dalam menentukan perbezaan upah jantina. Berdasarkan dapatan kajian ini, kerajaan perlu lebih tegas dalam melaksanakan undang-undang kesamaan upah yang terkandung dalam Akta Buruh negara. Bagi pihak majikan pula, mereka perlu lebih telus dalam mengambil pekerja berdasarkan merit dan bukan berdasarkan jantina.

Background and Purpose: The aim of this paper is to evaluate public acceptance toward Islamic banking system in Malaysia by using the market structure analysis as proposed in industrial organizational studies. The structural approach framework was used to evaluate the nature and changes of market concentration in the Malaysian Islamic and conventional deposit markets.   Methodology: The well-known market concentration measure, namely concentration ratio (CR) is calculated to study the changes in saving behaviour among depositors in both banking markets. The concentration ratios of deposits for both banking markets are evaluated by using the banking firms’ level data for the period 1997–2016. Pearson and Spearman correlation analysis was also used to investigate the relationship between the total deposits and bank-specific variables.   Findings: It is found that interest or profit rate paid to the depositors are the factor that greatly affect the depositors’ choice of banks to save their money. Besides, experience doing businesses is more important to Islamic banks compared to conventional banks in order to attract depositors.   Contributions: The findings demonstrate that societies, especially the Islamic community, are still loyal to conventional banks, which have more experience in the banking operation. The findings of this study are expected to open the eyes of the Muslim community to use Islamic banking services, which are certainly sharia-compliance.   Keywords: Concentration ratio, deposit, dual banking, market structure, perception.   Cite as: Mohammed, N., Jauhari, A., & Mohammed, N. (2020). Customers’ deposit behaviour in dual banking industry: A market structure analysis. Journal of Nusantara Studies, 5(1), 356-377. http://dx.doi.org/10.24200/jonus.vol5iss1pp356-377

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