Comparative Analysis of Financial Performance between Islamic and Conventional Bank in Indonesia

P Purwanto and Raeny Juliani

International Journal of Management, Accounting and Economics, 2017, vol. 4, issue 4, 401-430

Abstract: The objective of this research is to compare the financial performance between Islamic and conventional bank in Indonesia in the period of 2006 – 2014 by using financial ratios. Financial ratios that are used consist of capital adequacy ratio (CAR), loan to deposit ratio (LDR), non performing loan (NPL), operational efficiency ratio (OER), and return on asset (ROA). The study analyzed five banks listed in Bank Indonesia which were PT Bank Bukopin, PT Bank Mega, PT Bank DBS Indonesia, PT Bank Syariah Mandiri, and PT Bank Muamalat Indonesia. The method used in this research is independent sample t-test, which is used to compare samples from two different populations. This study used secondary data that was collected and obtained from financial publication report quarterly published by representative banks through the official sites of the banks and official site of Bank Indonesia starting from March 2006 to June 2014. The result showed that CAR, LDR, NPL, and OER between Islamic and conventional banks are significantly different, while ROA showed no significant different between Islamic and conventional banks. In terms of CAR and NPL, conventional bank is better than Islamic bank, meanwhile Islamic bank is better than conventional bank in terms of LDR, OER, and ROA.

Keywords: car; LDR; NPL; OER; ROA (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ijmae.com/article_115014_8f33963e9c924c064e499e5cc86f4b05.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:air:journl:v:4:y:2017:i:4:p:401

DOI: 10.5281/zenodo.17511626

Access Statistics for this article

More articles in International Journal of Management, Accounting and Economics from International Journal of Management, Accounting and Economics
Bibliographic data for series maintained by Dr. Behzad Hassannezhad Kashani ().