Analysis of the Effect Spin-Off Increasing Shariah Compliance in Indonesian Islamic Bank

Abstract

Sharia banks are committed to growing with the potential and sharia market. But sharia banks also want to be pure sharia everywhere. One way is by spin off, but it turned out to be stagnant and not in accordance with the percentage of the sharia market in Indonesia. Sharia bank efficiency does not grow rapidly and profits are minimal when spin off. The aim of this research is to analyze the impact of bank spin-offs on Sharia bank compliance. This research method uses a causative qualitative method, based on qualitative data looking at the cause and effect relationship of a policy. To strengthen the results, deep structured open interviews were used from policy makers (BI), academics and Islamic bank spin-off actors. The results show that Spin off is a necessity as mandated by Law No. 21 of 2008, because on the one hand it wants to be a goal for halal Islamic banks in a big way. The impact is that banks that have been spun off will increase their sharia compliance more than UUS, even though the growth is not very significant and their business is not very efficient.