DAMPAK TINGKAT KONSENTRASI TERHADAP KINERJA DAN STABILITAS PERBANKAN DI INDONESIA TAHUN 2003-2013

Abstract

The Indonesian Banking Architecture policy had increased banks’ concentration to strengthen their capitalstructure. Banks were forced to increase their capital so that banks consolidation might occur through mergers andor acquisitions. Based on these conditions, the purpose of this study was to analyze the impact of bank concentrationlevel to the performance and stability of the bank. Using the efficiency hypothesis, “concentration-stability”hypothesis, and “concentration-fragility” hypothesis, this study analyzed the entire conventional banks inIndonesia. The data used were secondary data from Bank Indonesia and the Central Bureau of Statistics from2003 to 2013, with panel data regression using eviews program. The results showed that banking industries inIndonesia supported the efficiency hypothesis and the “concentration-stability” hypothesis.

Keywords

• banking, concentration, efficiency, stability