Conversion into full-fledge islamic banks and it’s impact on asset: Evidence from indonesian islamic banking industry

• Autores: Yuke Rahmawati, Dwi Nuraini Ihsan, Erika Amelia, Mohammad Nur Rianto Al Arif
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 9, Nº. 4, 2024
• Idioma: inglés
• DOI: 10.26668/businessreview/2024.v9i4.4621
• Enlaces
  • Texto completo (pdf)
• Resumen

  • 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.

• Referencias bibliográficas
  • Abduh, M., Kasim, S., & Dahari, Z. (2013). Factors Influence Switching Behavior of Islamic Bank Customers in Malaysia. Journal of Islamic...
  • Abimanyu, A., & At Tamimi, R. A. (2024). Should Islamic Window be Converted into a Full-Fledge Islamic Bank? A Case Study in Indonesia....
  • Adebola, S. S., Wan Yussof, W. S., & Dahalan, J. (2011). The Impact of Macroeconomic Variables on Islamic Banks Financing in Malaysia....
  • Adenan, M., Safitri, G. H., & Yuliati, L. (2021). The Market Share of Islamic Banks to Islamic Financial Institution in Indonesia. E-JEBA,...
  • Adha, S. I., Furqani, H., & Adnan, M. (2020). Konversi Bank Konvensional Menjadi Bank Syariah di Indonesia. Journal fo Sharia Economics,...
  • Afrida, Y., Rahim, R., & Wira, A. (2020). Pengaruh Pengetahuan, Religiusitas dan Kualitas Pelayanan Terhadap Loyalitas Nasabah (Proses...
  • Ahdizia, K., Masyita, D., & Sutisna. (2018). Business Valuation of Islamic Banks in the Merger Plan to Become Indonesia’s State-Owned...
  • Ahmed, F., & Hussainey, K. (2015). Conversion into Islamic Banks: Jurisprudence, Economics, and AAOIFI Requirements. European Journal...
  • Alani, F. S., & Yaacob, H. (2012). Traditional Banks Conversion Motivation into Islamic Banks: Evidence from the Middle East. International...
  • Alamsyah, A. R., & Amri, Y. (2021). Pro dan Kontra Bank Konvensional Menjadi Perbankan Syariah Berdasarkan Qanun Nomor 11 Tahun 2018....
  • Al Arif, M. N. R., Masruroh, A., Ihsan, D. N., & Rahmawati, Y. (2020). The Alternative Strategies for Accelerating Islamic Banking Growth:...
  • Al Arif, M. N. R., & Nabilah. (2022). Spin-off and Efficiency in Islamic Banks: DEA Approach. Jurnal Ekonomi dan Keuangan Islam, 8(2),...
  • Al Arif, M. N. R., Ihsan, D. N., Zulpawati., & Fatah, D. A. (2023). The Impact of Conversion on Market Share in Indonesian Islamic Banks....
  • Al Arif, M. N. R., Ihsan, D. N., & Zulpawati. (2024) Does Conversion Increase Deposit Funds in Islamic Banks in Indonesia? The Case of...
  • Al Atyat, Y. (2007). Transforming Conventional Banks to Work According to Islamic Shari’a: A Study to Show the Viability of Application in...
  • Al-Harbi, A. (2020). The Effect of Conversion of Conventional Banks to Islamic Banks: Evidence from GCC Countries. International Journal of...
  • Al Kautsar, S., Indra, L., Wicaksono, T. P., & Hanggraeni, D. (2019). Pengaruh Konversi Bank Konvensional Menjadi Bank Syariah Terhadap...
  • Asif, M., Ahmed, U., Zahid, M., & Khan, A. (2017). Motives Behind the Transfer of a Bank From Conventional Banking to Islamic Banking...
  • Azmat, S., Azad, A. S. M. S., Ghaffar, H., Hayat, A., & Chazi, A. (2020). Conventional vs Islamic Banking and Macroeconomic Risk: Impact...
  • Bensaadi, I., Yusuf, Z., Muchtar, D., & Matondang, M. A. P. (2021). Does Bank Health Matter After Converted to Sharia? Case Study of Bank...
  • Budhijana, R. B. (2019). Analisis Faktor-faktor yang Mempengaruhi Pangsa Pasar Perbankan Sharia 2018. Jurnal Ekonomi, Manajemen dan Perbankan,...
  • Budianto., & Sofyan, D. A. (2021) Analisis Perbandingan Kinerja Keuangan Bank Aceh Sebelum dan Sesudah Konversi Syariah. Jurnal Akademi...
  • Chowdhury, M. A. F., & Rasid, M. E. S. M. (2016). Determinants of Performance of Islamic banks in GCC Countries: Dynamic GMM Approach....
  • Dalhatu, S. S., Sharofiddin, A., & Abubakar, M. (2023). Regulating the Conversion of Conventional Banks to Islamic: The 4 Quadrants Conversion...
  • Damanuri, A. (2012). Rasionalitas Konversi Bank Konvensional ke Bank Syariah. Justitita Islamica, 9(1), 69-96.
  • El-Brassi, M. A. M. A., Bello, N., & Alhabshi, S. M. (2018). Conversion of Conventional Banks to Islamic Banks in Libya: Issues and Challenges....
  • El-Brassi, M. A. M. A., Alhabshi, S. M., & Othman, A. H. A. (2020). Exploring the Knowledge of Islamic Banking Among Libyan Bankers. International...
  • Zarman, N. E., Ismuadi, A. I. N., & Ayumiati. (2020). Determinan Market Share Perbankan Syariah di Indonesia. Esensi: Jurnal Bisnis dan...
  • Fahdiansyah, R. (2021). Kinerja Keuangan Bank Sebelum dan Sesudah Konversi ke Bank Syariah (Studi Pada Bank NTB Syariah). Jurnal Akuntansi...
  • Fathony, A., Affan, M. H., & Mahmudi. (2022). Model Strategi Literasi Keuangan Dalam Meningkatkan Pangsa Pasar Syariah di Indonesia. Al-Iqtishod:...
  • Hanafi, S. M. (2021). Determinant of Market Share in the Indonesian Islamic Banking Industry. Muqtasid, 12(1), 1-16.
  • Haribowo, I. (2017). The Indonesian Islamic Bank’s Spin-off: A Study in Regional Development Banks. Al-Iqtishad: Journal of Islamic Economics,...
  • Hasan, A. I., & Risfandy, T. (2021). Islamic Banks’ Stability: Full-Fledged vs Islamic Windows. Journal of Accounting and Investment,...
  • Hidayat, A. R. & Trisanty, A. (2020). Analisis Market Share Perbankan Syariah di Indonesia. At-Taqaddum, 12(2), 183-200.
  • Hosen, M. N., & Muhari, S. (2017). Liquidity and Capital of Islamic Banks in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 6(1), 49-68.
  • Kamarulzaman, Y., & Madun, A. (2013). Marketing Islamic Banking Products: Malaysian: Perspective. Business Strategy Series, 14(2/3), 60-66....
  • Mustafa, M. E. (2006). Asses the Phenomenon of Transformation Conventional Banks to Islamic Banking: Applied Study on the Saudi Banks. (Unpublished...
  • Pambuko, Z. B., & Pramesti, D. A. (2020). The Effectiveness of Bank of Aceh Sharia Conversion Decision. Economica: Jurnal Ekonomi Islam,...
  • Purba, A. I. (2017). Pengaruh Perubahan Bank Umum Sharia Terhadap Minat Menabung di Bank Aceh Syariah Pada Masyarakat Kabupaten Aceh Tenggara....
  • Rafay, A., & Sadiq, R. (2015). Problems and Issues in Transformation from Conventional Banking to Islamic Banking: Literature Review for...
  • Rahmawati., & Putriana, K. (2020). Tantangan Konversi Bank Konvensional Menjadi Bank Syariah di Aceh Berdasarkan Qanun Lembaga Keuangan...
  • Ramdan, A. N., Ikono, R., & Sari, P. R. K. (2020). Manajemen Proses Konversi Perbankan Konvensional Menjadi Perbankan Syariah Studi Kasus...
  • Ratnasari, N. G., Hati, S. R. H., & Chalid, D. A. (2021). Full-Fledged vs Islamic Bank Windows: Which One do Muslim Customers’ Know Better...
  • Ribowo, S., & Nurdin, I. B. (2022). Analisis Konversi Bank BUMD Menjadi Bank Sharia: Implikasinya Pada Peningkatan Market Share Bank Sharia...
  • Rohman, M. A. (2019). Conversion Bank Effect: Qonun Aceh dan Kesejahteraan. I-Finance, 5(2), 141-152.
  • Sakti, M. R. P., & Mohamad, A. (2018). Efficiency, Stability and Asset Quality of Islamic vis-a-vis Conventional Banks: Evidence from...
  • Shafii, Z., Shahimi, S., & Saaid, A. (2016). The Factors that Influence the Conversion Process from Conventional Banks into Islamic Banking...
  • Sukmana, R., & Ibrahim, M. H. (2021). Restructuring and Bank Performance in Dual Banking System. Signifikan: Jurnal Ilmu Ekonomi, 10(2),...
  • Sulistyawati, A. I., Hidayah, N., & Santoso, A. (2020). Analisis Determinan Deposito Mudharabah. Indonesia Accounting Journal, 2(2), 133-147.
  • Suzuki, Y., Uddin, S. M. S., & Islam, A. K. M. R. (2020). Incentives for Conventional Banks for the Conversion into Islamic Banks: Evidence...
  • Trisnawati, Y., & Wagian, D. (2021). Aspek Hukum Peralihan Bank NTB Konvensional Menjadi Bank of NTB Syariah (Studi Kasus di Bank NTB...
  • Viverita, V., Bustaman, Y., & Danarsari, D. N. (2023). Liquidity Creation by Islamic and Conventional Banks during the Covid-19 Pandemic....
  • Yoesoef, Y. M., & Khairisma. (2020). Eksistensi Bank of Aceh Pasca Konversi Terhadap Kesejahteraan Masyarakat Aceh. Al-Masharif: Jurnal...
  • Yusuf, M., Abduh, M. R., & Sofyani, H. (2023). Islamic Bank Spin-off: A Systematic Literature Review. Journal of Accounting and Investment,...