摘要:The research aims to highlight the importance of market structure and behavior on Islamic banking
performance by using the Structure Conduct Performance (SCP) analysis to approximate the
growth of Islamic banking performance in the short and long term using error correction model.
The data used in this study is time series obtained from the financial statement of each Islamic bank,
Financial Service Authority and Bank of Indonesia on Islamic banking statistics monthly reported
from April, 2015 to October, 2018. Population of this study covers all Islamic commercial banks
in Indonesia. The purposive sampling method is used to select samples based on criteria to get
samples that are feasible to be analyzed. Error correction model is applied to characterize the joint
dynamic of variables in both in the long and short term relationships. The Johansen co-integration
results indicate a stable long term relation between market structure and Islamic banking performance.
Results show that Market structure variable outside market share of financing in the long
term had a significant effect on the Islamic banking performance, but in the short term market
structure, the variable had no significant effect on the Islamic banking performance in Indonesia.