Business Valuation of Islamic Banks in Merger Plan To Become  An Indonesia’s State-Owned Islamic Bank

Ahdizia, Khulifa; Masyita, Dian; Sutisna, S.

doi:10.15408/etk.v17i2.7238

Cited by 12 publications

(11 citation statements)

References 9 publications

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“…Third, Islamic financial institutions can gain efficiency through diversification and improving management quality. Mergers and acquisitions will have a significant effect on post-long-term performance to control the crisis (Ahdizia et al, 2018). The merger of several sharia business units will be able to strengthen the capital of the sharia bank resulting from the merger.…”

Section: Results and Analysis Sharia Bank Merger In Market Expansion Effortsmentioning

confidence: 99%

“…In addition, bank mergers can generate efficient profits by changing the input-output mix in a way that optimizes costs and revenues (Montoriol-Gariga, 2008). In addition, in several studies, it is known that financial performance improves in the long term after the merger (Ahdizia et al, 2018). Merger company stock prices also increased after the merger agreement, with the financial health condition of the merger companies describing an identical or better situation (Nizar & Nasir, 2016a).…”

Section: Advantages Of Bank Mergersmentioning

confidence: 99%

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Acceleration and Strengthening of Sharia Financial Inclusion Through Merging Sharia Banking in Indonesia

Syarifuddin

2021

JEBIS

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Islamic banking in Indonesia is slowly experiencing significant developments both in terms of number of assets and its financial performance. On the other hand, the market share was only able to grow by 6.18 percent with grow rate less than 5 percent. Therefore, one of the strategies to increase and accelerate the growth of Islamic banking is through a merger. The purpose of this study is to provide an overview of the potential development of Islamic banking after the merger as an effort to strengthen the inclusion and acceleration of Islamic finance in Indonesia. The method used is in the form of a systematic analysis review by collecting various secondary data and then conducting a quality assessment to obtain in-depth research objectives. The results found through content analysis indicate that the merger strategy provided added value to the banking industry through greater market expansion, increased cost efficiency, financial performance, and lowering prices, to meet the public need for sharia-based financial services. Through a merger strategy, Islamic banking is able to become a new pillar of national economic strength and encourage Indonesia to become the center of the world on Islamic finance.

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Section: Results and Analysis Sharia Bank Merger In Market Expansion Effortsmentioning

confidence: 99%

Section: Advantages Of Bank Mergersmentioning

confidence: 99%

Acceleration and Strengthening of Sharia Financial Inclusion Through Merging Sharia Banking in Indonesia

Syarifuddin

2021

JEBIS

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“…Laporan Asian Development Bank tahun 2016 menyebutkan bahwa Indonesia memberikan kontribusi 13,4% dari seluruh aset perbankan syariah di Asia yang mencapai $ 209,3 miliar. Namun untuk negara-negara di kawasan Asia, peringkat Indonesia memiliki gap yang cukup lebar dibandingkan dengan Malaysia yang menempati peringkat kedua secara global dengan total aset $ 156,7 miliar (Ahdizia et al, 2018).…”

Section: Latar Belakang Penelitianunclassified

Analisis Kinerja Keuangan Perbankan Syariah Sebelum Merger Menjadi Bank Syariah Indonesia

Ahmadi¹,

Alboneh²,

Ardiansyah³

2021

jrabi

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Indonesia is one of the most impactful Islamic economies country in the world which has various potentials in the development of the Islamic economic sector, including banking. This study aims to measure and analyze the performance of Islamic State-owned banks in Indonesia before merging into Bank Syariah Indonesia (BSI). This research is descriptive quantitative research by measuring the financial performance of the bank through the level of profitability and risk ratios. The results of the study show that in general the performance of the 3 state-owned Islamic banks is good and experiencing growth, so it is assessed that by merging assets and markets, Islamic banks in Indonesia can grow faster.

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“…Sharia banks are banks that carry out business activities based on sharia principles in the fatwa of the Indonesian Ulema Council, such as the principles of justice and balance ('adl wa tawazun), benefit (maslahah), universalism (alamiyah) (Ahdizia et al, 2018;Ullah & Seman, 2021). And does not contain gharar, maysir, usury, injustice, and unlawful objects (Mohiuddin et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Analysis of Abnormal Returns Before and After the Announcement of the Merger of State-Owned Sharia Banks

2021

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Purpose - This study aims to examine the capital market's reaction to the merger of BUMN Syariah Banks, which is seen as abnormal returns at PT Bank BRI Syariah Tbk.Method - The data for this study were taken ten days before and ten days after announcing the BUMN Sharia Bank merger. The data was processed by paired sample t-test using SPSS.Result - Based on the analysis and discussion results, it shows that there is no market reaction to the announcement of the signing of the BUMN Islamic bank merger on BRIS shares as seen from the abnormal returns before and after the signing of the merger, which there is no significant difference.Implication - This can happen because the world is currently facing the COVID-19 pandemic, which causes market uncertainty. In addition, abnormal returns are not the only indicator to measure the wealth created by an event. Another factor that causes no significant difference in abnormal returns is that the data used in the event window research is daily and short enough to have no visible reaction. Furthermore, the issue of a merger has also been circulating before the announcement of the signingOriginality- This article examines abnormal returns before and after the announcement of the merger of State-Owned Sharia Banks

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Business Valuation of Islamic Banks in Merger Plan To Become An Indonesia’s State-Owned Islamic Bank

Cited by 12 publications

References 9 publications

Acceleration and Strengthening of Sharia Financial Inclusion Through Merging Sharia Banking in Indonesia

Acceleration and Strengthening of Sharia Financial Inclusion Through Merging Sharia Banking in Indonesia

Analisis Kinerja Keuangan Perbankan Syariah Sebelum Merger Menjadi Bank Syariah Indonesia

Analysis of Abnormal Returns Before and After the Announcement of the Merger of State-Owned Sharia Banks

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