THE INDONESIAN BANKING INDUSTRY COMPETITION: FINANCIAL CONGLOMERATION APPROACH

Dyah Nirmalawati Taurusianingsih

Abstract


Abstract. This study was conducted to analyze the existence of economies of
scope and competition in the Indonesian banking industry based on the
phenomenon of financial conglomerates. By using the New Empirical Industrial
Organization method, this study contributed to enrich the literature of banking
industry competition in Indonesia. The results of the study showed that
conglomeration increased market power and decreased market level competition.

Keywords


conglomeration, financial conglomeration, bank, competition, Panzar Rosse model.

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