An Analysis of Competition Level in Banking Industry, Indonesia (Published)
Banking industry in Indonesia has a wide variety of products and other banking services offered to the customers and the prospective customers is the same but the advantages of each service product are different. Competition in the banking industry is not a perfect competition but a monopoly which is then augmented by collusion to regulate a price competition and non-pricebanking industry in Indonesia is generally in a monopolistic competition situation. The variables used to explain the income variables (NITA), such as PL, EQTA, LDTLD and LFTA variables which have a positive and significant influence, meanwhile the PCE and LOATA variables have a negative and significant effect on NITA in banking institutions in Indonesia. The rise of input prices of PL, EQTA and LOATA decline (labor costs, capital, and fund / borrowing costs) used to generate bank output have an impact on the increase in revenues to be received by banks. This is consistent with the assumption that the higher input prices (PL, EQTA) is, the lower specific indicators of LOATA which mean the higher input costs of banks as the impact of increasing demand for bank output ultimately increases bank revenues.
Keywords: Banking Industry; Competition Level; Economy Growth