ABSTRACT -This paper discusses the conditions of competition banking industry in Indonesia, especially Islamic Bank in gentity. Islamic Bank became the object of research because significant growth in industrial banking.This study uses a quantitative approach with adescriptive design. Source of data used from individual banks annual report on the website of Bank Indonesia from the period 2008-2011. To measure as pects of competition Islamic Bank in gusing Panzar & Rose statistic methods. Results of study showed that Islamic banking came into condition of monopolistic competitition structure.