The purpose of this study is to investigate the determinants of profitability in Indonesian banking industry. This research defines profitability as basic earning power (BEP) and return on equity (ROE) with variables like basic condition, market structure, banking characteristics and performance as its determinants. Both credit market and deposit market channel of Indonesian banking were used to analyze the data. The Structure-Conduct Performance (SCP) paradigm was used to offer theoretical perspective. Data was collected through purposive sampling technique, randomly picked from Indonesian banks financial statements during 2001-2014. The dynamic panel GMM-Arellanno Bond was used as the tool analysis. The results show that basic condition, market structure, banking characteristic, and performance significantly influence profitability. Based on this result, the study recommends that Indonesian banking segment should improve its market structure through enhancement of performance particularly that of individual banks. It also recommends that regulations and policy planning of national banking industry should be directed to retaining and increasing profitability without relying on market power, nor requiring collusion or high interest to get higher profit. The implication of the current research will be seen in judging the durability of bank profitability and finding means to make it strong enough despite the influence of crisis, money market and inflation, although it may be still sensitive to exchange rate volatility. Contribution/ Originality:This study contributes to the existing literature since the determinants of banking profitability are seen holistically in this study. Based on Structure-Conduct-Performance (SCP) versus Efficiency Structure Hypothesis (ESH) Paradigm test, this study has attempted to detect the condition of the Indonesian Banking Industry, whether it is still collusive or has gained efficiency in the current time.

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ASEAN Economic Community (AEC) of banking industry requires both Islamic and conventional banking to improve their efficiency because the competition in banking market industry will be more intense. Therefore, this study aims to identify the type of hyphotesis of industrial organization which exists in Islamic and conventional banks in order to investigate their readiness for AEC. The research sampling consists of 10 Islamic banks and 10 conventional banks from January 2009 to December 2016. To measure x-efficiency and scale efficiency, this research uses Data Envelopment Analysis (DEA). Meanwhile, the concentration is measured by Lerner index. The hypothesis is tested by using panel regression. The result shows SCP (Structure-Conduct-Performance) hypothesis is closely applied to Islamic and conventional banks because market concentration significantly influences profitability. RMP (Relative Market Power) hypothesis is also closely applied to Islamic and conventional banking, this indicates Indonesian banking has market power in determining prices and this condition makes the profit higher. RES (Relative Efficiency Structure) and SES (Scale Efficiency Structure) hypothesis do not exist in both conventional and Islamic banks because x-efficiency and scale efficiency do not affect profitability, concentration, and  market share simultaneously. Market power and efficiency researches are commonly conducted in conventional banking, however there are only a few research in Islamic banking area. The novelty of this study is the comparison between conventional and Islamic banking in the term of market structure and efficiency.

The speed of mobility of public funds by the banking sector implies the conditions of economic liquidity and internal bank liquidity. The faster the mobility of funds, the more the availability of liquidity for the community, the higher banking profitability, and the lower bank's internal liquidity. The uncontrolled mobility of funds can have severe consequences for both banks and society. As an intermediary financial institution, banking plays the main role to be the intermediary institution between surplus units and deficit units. This study aims to find out the factors influencing funds mobilization by Regional Development Bank (RDB) in Indonesia. The data research is quarterly financial statement secondary data of Indonesian regional banking from 2010 to 2017. There are 26 RDBs as the sample and this research uses regression as the research method. The result shows that regional external economic variables such as GDP, Exchange Rate and Inflation, market concentration, and banking characteristics affected the funds mobilization of Indonesian RDBs. This means the pricing strategy must consider more to external and internal variables of economics. In the future, Indonesian RDBs need to develop specific deposits and credits products to maintain and increase the mobilization of funds function.