Market Concentration, Market Share, and Profitability (Study at Indonesian Commercial Banking in the Period of 2001-2012)

  •  Sapto Jumono    
  •  Noer A. Achsani    
  •  Dedi B. Hakim    
  •  Muhamad Fidaus    


The objective of this research is to examine the influence of market structure on Indonesian commercial banking performance by using concentration ratio and individual market share through deposits market channel and credits market channel. There were 101 banks chosen from 120 banks in a period of 2001-2012 as sampling of research by using purposive sampling. This research uses data panel that combines data cross section and data time series, therefore panel data regression is used in this research. The result of panel data analysis has allowed us to conclude that concentration ratio of deposits market has a significant and positive influence on ROA, meanwhile concentration ratio of credits market, individual market share of deposits, and individual market share of credits market have no significant effects on ROA.

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