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Banking Strategy and Implementation of Banking ASEAN Integration Framework(ABIF)in ASEAN Community (AEC)'s Era 2020 ERA 2020

Author

Listed:
  • Suryasnia, Sofi
  • Primiana, Ina
  • Sucherly, Sucherly
  • Herwany, Aldrin

Abstract

As the preparation and to support the integration of ASEAN banks in 2020, through the establishment of ASEAN Banking Integration Framework (ABIF), banks and business people are expected to develop their businesses in the region with broader scope, more efficient and stable financial. The main purpose of ABIF 2020 is to provide Qualified ASEAN Banks (QAB) which has adequate capital, resilient, well managed and meet the prudential banking requirements, with more access to the regional markets and freedom to operate in ASEAN member countries. However, currently most Indonesian banks still have limited resources compared to the large banks from other ASEAN countries. Even Indonesia’s largest bank assets is only 1/6 of the largest bank in Singapore. Therefore, if Indonesian Banks want to compete, they certainly have to improve their overall performance. This study is aimed to analyze the strategy that Bank should implement to deal with ABIF. One that must be done is to develop a business strategy that allows banks to achieve the optimum level of profitability and efficiency. The method that will be used in this research is the Seemingly Unrelated Regressions (SUR) for Panel Data. The data used is the entire banking listed in the Stock Market in ASEAN countries. The results of this study are expected to provide a clear picture of the Banking Business Strategy in dealing with the enactment of ABIF in AEC’s era, and enrich the research literature in the field of Banking Business Strategy to challenge the increasing competition in the region.

Suggested Citation

  • Suryasnia, Sofi & Primiana, Ina & Sucherly, Sucherly & Herwany, Aldrin, 2016. "Banking Strategy and Implementation of Banking ASEAN Integration Framework(ABIF)in ASEAN Community (AEC)'s Era 2020 ERA 2020," MPRA Paper 73303, University Library of Munich, Germany, revised 25 Aug 2016.
    • Handle: RePEc:pra:mprapa:73303
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    References listed on IDEAS

    as
    1. Nguyen, My & Skully, Michael & Perera, Shrimal, 2012. "Bank market power and revenue diversification: Evidence from selected ASEAN countries," Journal of Asian Economics, Elsevier, vol. 23(6), pages 688-700.
    2. Wu, Yueh-Cheng & Wei Kiong Ting, Irene & Lu, Wen-Min & Nourani, Mohammad & Kweh, Qian Long, 2016. "The impact of earnings management on the performance of ASEAN banks," Economic Modelling, Elsevier, vol. 53(C), pages 156-165.
    3. Lee, Cassey & Fukunaga, Yoshifumi, 2014. "ASEAN regional cooperation on competition policy," Journal of Asian Economics, Elsevier, vol. 35(C), pages 77-91.
    4. Rubi Ahmad & M. Ariff & Michael Skully, 2008. "The Determinants of Bank Capital Ratios in a Developing Economy," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 15(3), pages 255-272, December.
    5. Nguyen, My & Skully, Michael & Perera, Shrimal, 2012. "Market power, revenue diversification and bank stability: Evidence from selected South Asian countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(4), pages 897-912.
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    More about this item

    Keywords

    Banking Strategy; ABIF (ASEAN Banking Integration Framework; ASEAN Economic Community (AEC);
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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