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Bulletin of Monetary Economics and Banking

Document Type

Article

Abstract

This paper analyzes the competition level of banking industry, prior and after the introduction of Indonesian Banking Architecture (API). Using panel data, the result shows the competition of banking decreased after the introduction of API, with large tendency to monopoly or collusive olligopoly. For the bank with niche market such as regional bank and mix bank, the introduction of API did not affect much, while the competition level for foreign bank is the lowest one. Non price variable would be the main determinant on banking competition in the future, including number of branches, wage and credit volume. Keywords: banking competition, market structure, Indonesian Banking Architecture (API).JEL Classification: C23, D40, E44, E58, G21, L11

First Page

417

Last Page

439

Creative Commons License

Creative Commons Attribution-NonCommercial 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia

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