THE PERFORMANCE COMPARISON OF ISLAMIC AND CONVENTIONAL BANKS IN INDONESIA
It has been three decades since Islamic banks first operated in Indonesia. From a mere single bank (Bank Muamalat), with an initial capital of Rp 84 billion in 1991 to holding a massive Rp 703.17 trillion of assets by 2022. One of many factors for the success of Islamic banks was regulation in favou...
Saved in:
| Main Author: | |
|---|---|
| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/75359 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | It has been three decades since Islamic banks first operated in Indonesia. From a mere single bank (Bank Muamalat), with an initial capital of Rp 84 billion in 1991 to holding a massive Rp 703.17 trillion of assets by 2022. One of many factors for the success of Islamic banks was regulation in favour of Islamic banks but not harming the more established conventional banks. Those lead to the question of whether Islamic banks perform better than conventional banks or not. This study will compare Islamic and conventional banks’ performance by using four performance indicators: Business Model presented by LDR; Efficiency presented by CIR; Asset Quality presented by NPL; and Stability presented by Z-score. The data were collected from financial reports from 10 Islamic banks and 10 conventional banks from 2005 Q1 – 2022 Q4. By running panel data regression with a dummy variable, it is expected to be able to compare the performance of Islamic banks and conventional banks. this study output is also expected to point out which performance of one type of bank better compares to the other. |
|---|