COMPARISON OF MARKET POWER AND FINANCIAL PERFORMANCE AT BANK SYARIAH INDONESIA (BSI) AND MAYBANK MALAYSIA IN 2022

Abstract

This study aims to analyze and compare market power and financial performance of Bank Syariah Indonesia (BSI) and Maybank Malaysia in 2022. The research is motivated by the need to evaluate the performance of Islamic banks in Southeast Asia during the post-pandemic recovery period. A descriptive-comparative quantitative method was employed using secondary data obtained from the annual financial reports of both banks. Market power was measured using the Herfindahl-Hirschman Index (HHI), while financial performance was assessed using the CAMEL ratio (Capital, Asset, Management, Earning, Liquidity). The results indicate that Maybank Malaysia operates in a moderately competitive market structure, while BSI operates in a less competitive one. Moreover, Maybank Malaysia demonstrated superior financial performance in most CAMEL indicators compared to BSI. It is concluded that Maybank Malaysia has an advantage in terms of market power and financial efficiency, which can serve as a reference for Islamic banking policy formulation in the region.