Challenges of Islamic Bank Merger in Indonesia: Bocr Approach

Rizal, Rizal; Firdaus, Nil; Yussof, Wan Nor Aisyah Wan

doi:10.31958/imara.v5i2.4687

Cited by 2 publications

(1 citation statement)

References 12 publications

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“…in the banking sector can also be examined using the BOCR method (Benefit, Opportunity, Cost, and Risk). To analyze this, the author explains the findings of a study conducted by Rizal, Firdaus, and Yussof (2021), which elucidates that the merger approach places greater emphasis on the cost aspect, with a value of 0.261.…”

Section: Merger and Acquisition (Manda) Of Bsi And Bank Victoria Syariahmentioning

confidence: 99%

Mergers and Acquisitions in Islamic Banking In Indonesia: A Study on BSI and Bank Victoria Syariah

Ahmad

2024

muqtasid

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Mergers and acquisitions (MA) in Islamic banking in Indonesia can be viewed from the strategic interests of each bank. This research aims to examine the patterns of MA in Bank Syariah Indonesia (BSI) and Bank Victoria Syariah in Indonesia. It also discusses the positive and negative implications of the MA of these two banks, as seen in the developments before and after the MA. This research employs BOCR (Benefit, Opportunity, Cost, and Risk) analysis to assess the extent to which MA patterns occur in the merger outcomes at BSI. It also utilizes CAMEL (Capital Asset Earnings and Liquidity) analysis to evaluate the post-acquisition banking health at Bank Victoria Syariah. The research descriptively explains the MA conditions in these two Islamic banks in Indonesia and the impact of MA on the banks, employees, customers, and the general public. The study results indicate that themerger of three state-owned Islamic banking companies, namely Bank Syariah Mandiri, BRI Syariah, and BNI Syariah, into BSI was carried out not only to expand the market share of Islamic banking but also due to cost considerations. At the same time, the acquisition of Bank Victoria Syariah was made due to capital needs as required by the regulator.

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Section: Merger and Acquisition (Manda) Of Bsi And Bank Victoria Syariahmentioning

confidence: 99%

Mergers and Acquisitions in Islamic Banking In Indonesia: A Study on BSI and Bank Victoria Syariah

Ahmad

2024

muqtasid

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Indonesia Islamic Bank Merger: Stages, Challenges, and Strategies

Mutmainah

Sukmadilaga²,

Sari³

2022

JRABA

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This study analyzes the Indonesia Islamic Bank (BSI) merger's stages, challenges, and strategies. The type of data is quantitative. The research method used is the Literature review method. The data used is secondary data in the form of journal articles used for publication in 2014-2021. The results showed that the stages during the Indonesia Islamic Bank (BSI) merger process started from the approval of the BRIS, BNIS, and BSM Board of Commissioners on the Merger Plan on October 20, 2020, until it officially started operating on February 1, 2021. In addition, the challenge for the Indonesia Islamic Bank (BSI) merger is the market share of the Islamic finance industry, which is still small or lagging compared to conventional banks. Thus, several strategies can be carried out by Indonesia Islamic Bank (BSI), starting from improving business processes, strengthening risk management, strengthening human resources (HR), in enhancing digital technology. The results of this study are expected to be input for Indonesian Islamic banks in particular to be able to determine the right strategy in dealing with mergers so that they can be a solution to the challenges that will be faced by Indonesian Islamic banks. In addition, the government, namely the Financial Services Authority (OJK) can coordinate with the Sharia Accounting Standards Board (DSAS) and the Indonesian Ulema Council (MUI) to supervise and assist in accelerating the development of Islamic banking.

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Challenges of Islamic Bank Merger in Indonesia: Bocr Approach

Cited by 2 publications

References 12 publications

Mergers and Acquisitions in Islamic Banking In Indonesia: A Study on BSI and Bank Victoria Syariah

Mergers and Acquisitions in Islamic Banking In Indonesia: A Study on BSI and Bank Victoria Syariah

Indonesia Islamic Bank Merger: Stages, Challenges, and Strategies

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