The Effectiveness of Bank Aceh Syariah Conversion Decisions

Pambuko, Zulfikar Bagus; Pramesti, Diesyana Ajeng

doi:10.21580/economica.2020.11.1.3494

Cited by 11 publications

(9 citation statements)

References 17 publications

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“…Conversely, if profits decrease, then the amount of profit reduction is proportional to the amount of increase in NPF. The results of this study lead to differences from the results of previous research conducted by Hosen & Muhari (2019) and Prastiwi (2021) which stated that ROE had a significant positive effect on NPF and what had been done by Pambuko & Pramesti (2020) resulted in ROE having a negative effect and significant to NPF, while based on the research objectives it is known that the contribution of ROE to NPF is 0.95% e. Effect of GDP on NPF GDP has a positive effect on both the long and short term NPF. Based on the IRF test, the GDP variable is positively responded to by NPF.…”

Section: Effect Of Roe On Npfcontrasting

confidence: 99%

Contributions of Internal and External Variables in Non-Performing Financing Bank Muamalat for the Period of 2005-2021

Mulyadi¹

2023

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The purpose of this study is to describe the condition of internal and external variables for non-performing financing in the 2005-2021 period by using internal variables that are proxied by Operating Expenses (OE), Financing Deposit Ratio (FDR), Net Operating Margin (NOM), and Return On Equity (ROE), while external variables are proxied by Gross Domestic Product (GDP) and inflation. The method used in this research is descriptive quantitative by analyzing secondary data which is processed using Eviews 10 with the VECM method and using quarterly time series data from 2005-2021. The results of data processing using VECM show several findings, namely: the ROE, GDP, and inflation variables have a positive effect, then the FDR and NOM variables have a negative effect, while OE has no effect on non-performing financing in the long term, while in the short term all variables do not affect non-performing financing. performing financing. Meanwhile, based on testing using FEDV, the contribution to non-performing financing is OE (1.08%), FDR (0.89%), NOM (4.11%), ROE (0.95%), GDP (2.29%), and inflation (2.68%).

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Section: Effect Of Roe On Npfcontrasting

confidence: 99%

Contributions of Internal and External Variables in Non-Performing Financing Bank Muamalat for the Period of 2005-2021

Mulyadi¹

2023

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“…Qanun regulates that financial institutions that can operate in Aceh are sharia financial institutions. Pambuko and Pramesti (2020) have suggested that the conversion of Bank of Aceh has significantly increased the level of non-performing financing. However, it has resulted in a corresponding decrease in profitability.…”

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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“…Islamic banks are reputed to have strong shariah capabilities. Several studies have cited these factors as the main reasons for the conversion of these banks (Rohman, The decision of Bank of Aceh and Bank of NTB to convert to Islamic banks resulted in an increase in the market share of the Islamic banking industry (Pambuko & Pramesti, 2020). This conversion strategy played a significant role in helping the Islamic banking industry exceed the 5 percent threshold.…”

Section: Literature Reviewmentioning

confidence: 99%

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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The Effectiveness of Bank Aceh Syariah Conversion Decisions

Cited by 11 publications

References 17 publications

Contributions of Internal and External Variables in Non-Performing Financing Bank Muamalat for the Period of 2005-2021

Contributions of Internal and External Variables in Non-Performing Financing Bank Muamalat for the Period of 2005-2021

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

The impact of conversion on market share in Indonesian Islamic banks

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