Structure, Conduct, and Performance of the Indonesian Banking Sector with Moderating Pandemic COVID-19 towards a Sustainable Banking Business
Farah Margaretha Leon
Faculty of Economics and Business, Universitas Trisakti, Indonesia.
Jakaria *
Faculty of Economics and Business, Universitas Trisakti, Indonesia.
Kristian Chandra
Faculty of Economics and Business, Universitas Trisakti, Indonesia.
Wahyuni Rusliyana Sari
Faculty of Economics and Business, Universitas Trisakti, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
Aims: This research was conducted to analyze the implementation of Structure, Conduct, and Performance in the banking industry in Indonesia with the ultimate goal of achieving a sustainable banking economic business.
Study Design: This research uses quantitative research with hypothesis testing.
Place and Duration of Study: Indonesian Banking between 2018 to 2021.
Methodology: The analytical method used is Structural Equation Model Partial Least Square (SEM-PLS).
Results: From the research findings described above, the following are some conclusions that can be drawn 1) The market structure and map of banking competition in Indonesia in the 2018-2021 period is an oligopoly market where state-owned banks and Bank Central Asia (BCA) are market leaders in the banking industry in Indonesia; 2) Market structure is proven to have a significant positive effect on conduct (behavior), namely the financial ratios of banks in Indonesia; 3) The COVID-19 pandemic did not moderate the effect of market structure on conduct (behavior), namely banking financial ratios in Indonesia; 4) Market structure is proven to have a positive effect on performance, namely sustainable economic performance in the banking industry in Indonesia; 5) The COVID-19 pandemic is not proven to be a variable moderating the effect of market structure on performance, namely sustainable economic performance in the banking industry in Indonesia; 5) Conduct has been proven to have a significant positive effect on performance, namely sustainable banking economic performance; The COVID-19 pandemic has been proven to be a variable that moderates the influence of conduct (behavior) on performance, namely sustainable banking economic performance.
Conclusion: The findings of this study indicate that market structure has proven to have a direct or indirect effect on sustainable economic performance mediated by conduct.
Keywords: Structure, conduct, performance, banking sector, sustainable economics business