Kinerja Keuangan Bank Sebelum dan Sesudah Konversi ke Bank Syariah (Studi Pada Bank NTB Syariah)

Fahdiansyah, Restu

doi:10.28918/jaais.v2i1.4075

Cited by 3 publications

(4 citation statements)

References 2 publications

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“…The analysis results indicate that the bank achieved an efficiency level of only 93% for the financing output variable and 67% for the income output variable, based on the Projected Value. The decrease in efficiency value for Bank NTB Syariah after the conversion aligns with the findings of a study conducted by Fahdiansyah (2021). The research revealed an increase in the financial performance of PT.…”

Section: Resultssupporting

confidence: 86%

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Efficiency of Bank Aceh Syariah and Bank NTB Syariah After Conversion

Wildan Hakim,

M. Aziz,

2024

KSS

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This study aims to compare the efficiency levels of Islamic commercial banks using the Data Envelopment Analysis (DEA) and Hahslm Reflexivity Dynamics (HEFDYN) methods before and after the spin-off period from 2008 to 2021. The implementation of Law (UU) No. 21 of 2008 concerning Sharia banking requires conventional commercial banks (BUK) to separate their Sharia business units (UUS) and establish Sharia commercial banks (BUS) when the assets of the UUS reach at least 50% of the total assets of the parent bank or after 15 years from the enactment of the Law. This research adopts a quantitative approach and focuses on a case study of two converted banks, namely Bank Aceh Syariah and NTB Syariah. The research methodology involves employing the data envelopment analysis with the VRS approach and the Hahslm Reflexivity Dynamics (HEFDYN) method. Based on the results of the DEA analysis, Bank Aceh Syariah successfully achieved a perfect efficiency value after undergoing conversion, demonstrating effective resource utilization and optimal operational performance. Conversely, Bank NTB Syariah experienced a slight decline in efficiency values, primarily attributable to decreased income variables and financing output in 2019. The HEFDYN analysis also revealed that although Bank Aceh Syariah attained perfect efficiency post-conversion, there is still potential for improvement, particularly in terms of financing growth. Similarly, Bank NTB Syariah, despite the decrease in efficiency values, has the opportunity to enhance its financial performance through targeted improvement efforts. Keywords: efficiency, conversion, DEA, HEFDYN

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Section: Resultssupporting

confidence: 86%

“…By doing so, it is hoped that Bank NTB Syariah can enhance its efficiency and achieve optimal performance in the future [22]. Source: The DEA assumes VRS, and the data will be processed in 2023…”

Section: Iciebdsmentioning

confidence: 99%

Efficiency of Bank Aceh Syariah and Bank NTB Syariah After Conversion

Wildan Hakim,

M. Aziz,

2024

KSS

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“…Pambuko and Pramesti (2020) report that the conversion of Bank of Aceh to a sharia commercial bank has led to improvements in the level of non-performing financing but a decline in profitability. On the other hand, Fahdiansyah (2021) found that the financial performance of Bank of NTB improved after its conversion to a sharia commercial bank, although further improvements are needed. According to Al Kautsar et al (2019), the stability of the bank after the conversion process is expected to be better than when it was a conventional commercial bank.…”

Section: Literature Reviewmentioning

confidence: 98%

The impact of conversion on market share in Indonesian Islamic banks

Arif

Ihsan

Zulpawati³

et al. 2023

Banks and Bank Systems

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The process of converting a conventional bank into a fully-fledged Islamic bank is becoming a popular alternative solution, alongside spin-off, for smaller banks. Two Indonesian banks, Bank of Aceh Sharia and Bank of NTB Sharia, completed this conversion in 2016 and 2018, respectively. This study uses a mixed-methods approach to examine the impact of this conversion on market share, using both quantitative regression with a dummy variable and qualitative analysis through focus group discussions with executive management and in-depth interviews with the Sharia supervisory boards of the two converted banks. The study found that the conversion positively impacted market share, with the default rate and level of capital also playing a role. Prior to conversion, the Indonesian sharia banking industry had less than a 5% market share, but after the conversion, it reached 6.7%. The two converted banks were able to increase their market share to 7% and 2%, respectively. These results suggest that converting into a full-fledged Islamic bank is a viable alternative solution for smaller conventional banks, rather than opting for spin-offs or mergers.

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“…However, it has resulted in a corresponding decrease in profitability. Bank of NTB's financial performance has improved since its transition to a full-fledged Islamic bank, but it has not yet reached its full potential (Fahdiansyah, 2021). This situation is attributable to the ongoing economic challenges faced by the people of NTB following the 2018 earthquake when the conversion occurred.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Conversion Into Full-Fledge Islamic Banks and It’s Impact on Asset: Evidence From Indonesian Islamic Banking Industry

Rahmawati,

Ihsan,

Amelia

et al. 2024

J. Professional Business Review

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Objective: This study aims to analyze whether the number of assets differs before and after conversion to an Islamic bank. Theoretical Framework: The theoretical framework provides relevant information on Islamic banking and market structure, which forms the basis for the development of hypothesis. Method: Using regression analysis with dummy variables, the study found differences in assets between the pre and post-conversion periods. Results and Discussion: The findings suggest that conversion could be a recommended approach for the Islamic banking industry in Indonesia to accelerate asset growth. Additionally, it offers an optimal solution for smaller-sized conventional banks as an alternative to spin-offs or mergers. Research Implications: This research provides significant contributions to the study of Islamic banking. This research has the implication that conversion can be an alternative strategy for small parent banks. Originality/Value: Several conventional banks in Indonesia have chosen full conversion into Islamic banks as an exit strategy. This decision is in addition to the spin-off option. Bank of Aceh, Bank of NTB and Bank of Riau Kepri completed the full conversion in 2016, 2018 and 2022, respectively. However, research on Islamic bank conversion is still limited.

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Kinerja Keuangan Bank Sebelum dan Sesudah Konversi ke Bank Syariah (Studi Pada Bank NTB Syariah)

Cited by 3 publications

References 2 publications

Efficiency of Bank Aceh Syariah and Bank NTB Syariah After Conversion

Efficiency of Bank Aceh Syariah and Bank NTB Syariah After Conversion

The impact of conversion on market share in Indonesian Islamic banks

Conversion Into Full-Fledge Islamic Banks and It’s Impact on Asset: Evidence From Indonesian Islamic Banking Industry

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