scholarly journals KOMPARASI TINGKAT KESEHATAN DUAL BANGKING SISTEM ANTARA DIVISI KONVENSIONAL DAN SYARIAH DI INDONESIA

2016 ◽  
Vol 1 (2) ◽  
Author(s):  
Rohimah Rohimah ◽  
Rifki Khoirudin
Keyword(s):  
Quantitative Research ◽  
Banking System ◽  
Test Sample ◽  
T Test ◽  
Islamic Banks ◽  
Significant Difference ◽  
Independent Test ◽  
Independent Test Sample ◽  
Conventional Banks ◽  
Health Ratio

This research aims to know the level of health ratio of conventional banks and islamic banks in Indonesia that have Dual Banking System. The sample of this research is 25 conventional bank and 24 islamic bank. This type of research is quantitative research. This research was analyzed using RGEC approach. The variables that used in this research consisted of Risk Profile factor assessed with NPL ratio and LDR of Earning factors assessed by ROA and BOPO ratio, and Capital factor was assessed through CAR ratio. Hypothesis testing in this study using independent sample t-test. From the calculation of the health level of banks, conventional banks are healthier than islamic banks. While the results obtained by using independent test sample t-test in this study showed that the ratio of NPL and CAR there is no significant difference. While the ratio of LDR, ROA, and BOPO there are significant differences.Keywords : Risk Profil; Earning; Capital

THE ISLAMIC VS CONVENTIONAL BANKS: AN EVIDENCE ON THE ECONOMIC DEVELOPMENT

2021 ◽  
Vol 02 (01) ◽  
pp. 68-81
Author(s):  
Muhammad Saqib Khan ◽  
Shaheera Munir ◽  
Ammara Mujtaba
Keyword(s):  
Quantitative Research ◽  
Banking System ◽  
Value Added ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Systems ◽  
Tax Shield ◽  
Gross Value Added ◽  
Conventional Banks ◽  
Bank System

This paper highlights how financial and conventional bank system contribute to economic growth. As the Islamic banking system is grounded on shariah’s laws and Usury/RIBA (interest) are prohibited in Islam so there will be no tax shield in this banking system and they have to pay more tax as compared to the conventional banking system. By analyzing their performance and using the gross value-added contribution of both banking systems was observed. Six banks are selected for this purpose of which 3 Islamic banks i.e. Dubai. It is quantitative research so different ratios are used to examine both banking system performance and gross value added to give us information that to what extend both banking systems are contributing to the economy. In an examination, it has been exposed that both banking systems are conducive much to economy as conventional banks are developed their infrastructure is bigger than Islamic banks where Islamic banks just start near past a few years back.

scholarly journals A Comparative Study of Islamic and Conventional Banking in Bangladesh: Camel Analysis

2016 ◽  
Vol 10 (1) ◽  
pp. 73-91 ◽  
Author(s):  
Md Tanim Ul Islam ◽  
Mohammad Ashrafuzzaman
Keyword(s):  
Comparative Study ◽  
Financial Performance ◽  
Financial Statements ◽  
T Test ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Management Capability ◽  
Significant Difference ◽  
Conventional Banks

The aims of this study are to evaluate the financial performance of Islamic and conventional banks of Bangladesh through CAMEL test during the period of 2009 to 2013. The study tries and to determine whether there are significant differences between the two categories of banks for each of the ratios used in CAMEL test. A sample of five listed conventional banks and five listed Islamic banks were selected to study the objectives. The data used in this study were compiled from the financial statements of the respective sample banks. To make substantial noteworthy results, t-test(independent sample) is used. This paper found no significant difference between the Islamic banks and conventional banks regarding capital adequacy, management capability and earnings but found a significant difference regarding asset quality.Journal of Business and Technology (Dhaka) Vol.10(1) 2015; 73-91

scholarly journals A Comparative Analysis of Resilience of Islamic and Conventional Banks in Indonesia

2020 ◽  
Vol 11 (2) ◽  
pp. 88-103
Author(s):  
Sri Ulina ◽  
M. Shabri Abd. Majid
Keyword(s):  
Global Financial Crisis ◽  
Strong Support ◽  
Sampling Technique ◽  
Banking Regulation ◽  
T Test ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Significant Difference ◽  
Conventional Banks ◽  
Paired T Test

The presence of the 2008 Global Financial Crisis (GFC) has adversely impacted both conventional and Islamic banking performances. This study aims to empirically compare the financial performances between Islamic banks and conventional banks during the pre- and post-2008 GFC periods. It also attempts to compare the financial performance of each Islamic and conventional bank between the pre- and post-2008 GFC periods. Three state-owned banks from each conventional and Islamic banking category were selected as the study sample using the purposive sampling technique. Based on the independent sample t-test, the study found a significant difference between the Islamic and conventional banking performances during the pre- and post-2008 GFC periods. Meanwhile, based on the paired t-test, the decline in Islamic banking performance from the pre-2008 GFC to the post-2008 GFC periods was significantly smaller than their conventional banking counterparts. These findings show the Islamic banks' superiority over their conventional banking counterparts due to fair and just practices based on Islamic tenets. Due to theirreliance in facing the episodes of crises, the Islamic banks deserve a strong support by government by enhancing prudent Islamic banking regulation. The Islamic banks should strive to operate fully based on the shari'ah principles and prudent banking management.

scholarly journals Analisis Perbandingan Kinerja Keuangan antara Bank Syariah dan Bank Konvensional (Studi Kasus pada Bank Syariah Mandiri dan Bank Mandiri)

2016 ◽  
Vol 7 (1) ◽  
pp. 119
Author(s):  
Yusvita Nena Arinta
Keyword(s):  
Quantitative Research ◽  
T Test ◽  
Financial Reports ◽  
Financial Ratio ◽  
Islamic Bank ◽  
Analysis Technique ◽  
Significant Difference ◽  
Conventional Banks

This study aims to analyze the performance of Sharia Bank and ConventionalBank viewed from financial ratio and to find the significant difference comparedto the performance of Islamic Bank and Conventional Banks viewed from financial ratio. This is a quantitative research. The data were taken from banks that published annual financial reports namely PT Bank Syariah Mandiri and PT. Bank Mandiri from 2011 to 2015. The analysis technique used in this research is financial ratio and t test. The results of this study showed that there is a significant difference between the performance of PT. Bank Syariah Mandri compared with PT. Bank Mandiri and, PT. Bank Syariah Mandiri has a better performance compared to that of PT. Bank Mandiri

scholarly journals Analisis Perbandingan Efisiensi, Kualitas Aset, Dan Stabilitas Bank Umum Konvensional Dan Bank Umum Syariah Yang Melakukan Pemisahan (Spin-Off) Di Indonesia Periode Tahun 2013-2017

2019 ◽  
Vol 1 (3) ◽  
pp. 1411-1425
Author(s):  
Uswatun Hasanah ◽  
Vanica Serly
Keyword(s):  
Sampling Technique ◽  
T Test ◽  
Islamic Banks ◽  
Loan Loss ◽  
Overhead Cost ◽  
Whitney Test ◽  
Significant Difference ◽  
Income Ratio ◽  
Conventional Banks ◽  
Asset Quality

This research aims to compare the efficiency, asset quality, and stability of Islamic banks that do spin-off and conventional banks in Indonesia from 2013 until 2017. The variables used are overhead cost and cost income ratio as efficiency proxy, the loan loss reserves is a proxy of asset quality, and return on asset and equity to asset ratio are proxy of stability. The sampling technique is total sampling. The population in this study amounted to 22 banks. The statistics test used are descriptive statistic, Mann Whitney test, and Independent Sample t-Test. The results showed that there were no significant differences in efficiency and asset quality, but stability was significant difference from 2013-2017.

scholarly journals Determinant of Indonesian Banking Profitability: Case Study Dual Banking System

2021 ◽  
Vol 4 (SI) ◽  
Author(s):  
Muhammad Nur Faaiz Fathah Achsani ◽  
Salina Kassim
Keyword(s):  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Economics Of Scale ◽  
Country Level ◽  
Panel Data Regression ◽  
Data Regression ◽  
Significant Difference ◽  
Conventional Banks

Islamic banking is considered as the perfect alternative of the current conventional financial system.  However, there is still a huge amount of criticisms in terms of its practice, with many claims that Islamic banking and finance simply replaces conventional banking terminology and offers near-identical services to its clients but at a higher cost. The objective of this study is to make a comparative empirical assessment on the determinants of profitability between the Islamic and conventional banks in Indonesia. The panel data regression is applied to analyze the relationship between profitability indicators and both industry and country level characteristics. As far as the author knows, only few studies compare the profitability of Indonesian Islamic banks and conventional banks, especially in using econometrics approach. From the empirical result in the combined model, it is known that conventional banks are more profitable than Islamic banks. Compared to the combined regression, there is no significant difference in terms of significance of the independent variables and its relationship with the dependent variable for the conventional bank regression. Conventional banks are more familiar for the community due to the long operation compared to Islamic banks. Socialization needs to be done with some approach starting from mosques and Islamic schools. The development of supporting industries such as halal industry and halal tourism are also important to increase the demand for Islamic banking product. Beside increasing the demand, efforts to increase the economics of scale is also important with various efforts such as merger or acquisition.

scholarly journals A Comparative Analysis of Profit Rate on Deposit in Islamic Banks in Bangladesh

IIUC Studies ◽  
2016 ◽  
pp. 81-98
Author(s):  
Mohammad Rokibul Kabir ◽  
Abdul Hamid Chowdhury
Keyword(s):  
Research Data ◽  
T Test ◽  
Islamic Banks ◽  
Profit Rate ◽  
Secondary Sources ◽  
Islamic Bank ◽  
Savings Accounts ◽  
Significant Difference ◽  
Rate Of Profit ◽  
The Relationship

The study is based on a total number of seven full-fledged listed Islamic Banks operating in Bangladesh. Secondary sources of data are used in this research. Data were collected from the Website of Bangladesh Bank and studying relevant literatures. This paper examines whether there is any differences of profit rate on deposits among different Islamic Banks. It also aims at finding whether there is any relationship between inflation and profit rate on deposits. Analyses have been done for two types of deposits accounts called Mudaraba Term Deposits Account and Mudaraba Savings Account. The results of the study reveal that, in case of Term Deposits the highest mean return is 11.06458% as offered by the First Security Islamic Bank Ltd. and the lowest mean return of 8.687500% is offered by Export Import Bank of Bangladesh Ltd. while in case of Mudaraba Savings Deposits the highest mean return of 6.583333% is offered by the First Security Islamic Bank Ltd. and the lowest mean return of 4.330417% is offered by Al Arafah Islami Bank Ltd. during the studied period. One sample t-test has been applied to find whether there is any significant difference in profit rate in different months and the study unfolds that the profit rate differs significantly in all the banks from month to month. The findings of Paired Sample t-test suggests that there is a significant difference in mean return between the Islamic banks in both of the Mudaraba Term Deposits and Mudaraba Savings Accounts in all the cases except for two pairs as the return on savings deposit does not significantly differ between Al Arafah Islami Bank Ltd. and Social Islami Bank Limited while it does not differ significantly between Social Islami Bank Limited and Islami Bank Bangladesh Ltd. in case of Mudaraba Term Deposits. Finally, the relationship between inflation and rate of profit is found insignificant in case of Mudaraba Saving Deposits while significant relationship has been discovered between Mudaraba Term Deposits and rate of inflation.IIUC Studies Vol.10 & 11 December 2014: 81-98

scholarly journals Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

2016 ◽  
Vol 8 (11) ◽  
pp. 193 ◽  
Author(s):  
Arfianti Novita Anwar
Keyword(s):  
Secondary Data ◽  
Rank Test ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
The Law ◽  
Conventional Banks

<p>This study aims to analyze the performance of Islamic banks and conventional banks before and after the implementation of Islamic Banking Act 2008. The performance will be measured using CAMEL ratio selected. This research is considered essential in examining the positive contribution of the application of the Act to improve the performance of Islamic banks in Indonesia. By using secondary data, this study compared the performance of Islamic banks with that conventional bank selected as samples during the study period. Data were analyzed using the Wilcoxon Signed Rank Test for inter-temporal and Mann-Whitney test for inter-bank. Inter-temporal Tests conducted on Islamic Banking showed that a significant difference was only seen in the NPF ratio of 2 years before and after implementation of Islamic Banking Act. As for conventional banks showed a more diverse ie for 1 year before and after the application of the Law on Islamic Banking there are significant differences for the ROA and ROE, two years before and after implementation of the Law Islamic banking there are significant differences for the CAR, ROA, ROE and NIM and for the overall test a significant difference to CAR, ROA, ROE, NIM and efficiency. Inter-bank testing showed that prior to the application of Islamic Banking Act there are significant differences between conventional banks and Islamic banks to CAR, ROA and efficiency. Furthermore, after the application of Islamic Banking Act there is a significant difference for the CAR and LDR / FDR.</p>

scholarly journals Pricing Linkage between Islamic Banking and Conventional Banking: The Case of Bangladesh

2016 ◽  
Vol 3 (4) ◽  
pp. 84
Author(s):  
Sarwar Uddin Ahmed ◽  
Ashikur Rahman ◽  
Samuel Parvez Ahmed ◽  
G M Wali Ullah
Keyword(s):  
Profit Sharing ◽  
Islamic Banking ◽  
Specific Rate ◽  
Islamic Banks ◽  
Loss Mechanism ◽  
Monthly Data ◽  
For Profit ◽  
Significant Difference ◽  
Conventional Banks ◽  
The Relationship

<p><em>Islamic banking is based on profit and loss mechanism where the use of interest is prohibited.  Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing.  However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits.  On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship was inconclusive, and requires further analysis.</em></p>

scholarly journals Evaluation and Comparison of Financial Soundness of Islamic and Conventional Private Commercial Banks in Bangladesh: A CAMEL Approach

2020 ◽  
pp. 128-140
Keyword(s):  
Quality Management ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Management Quality ◽  
Significant Difference ◽  
Financial Soundness ◽  
Marginal Status ◽  
Conventional Banks ◽  
Asset Quality

This article evaluates and compares the financial soundness of Islamic and conventional PCBs operating in Bangladesh based on the CAMEL approach over the period 2015 to 2019. For this purpose, the authors select a sample of 17 Conventional PCBs and 6 Islamic PCBs listed on the Dhaka Stock Exchange. In terms of composite CAMEL ratings, none of the banks is found to be strong or satisfactory in financial soundness in 2019. Out of 17 conventional banks, 13 of them are in a fair position i.e. having financial, operational, or compliance weakness and need more than normal supervision and regulation to address the deficiencies. Another 4 conventional banks are in a marginal position means that they are in serious financial problems and need close supervision and regulation. Ranking of conventional banks based on composite CAMEL ratings shows that Brac Bank Ltd. is in top position (Score 2.65) with Bank Asia Ltd. securing second position (score 2.7) while AB Bank Ltd., IFIC Bank Ltd, One Bank Ltd., and Mutual Trust Bank Ltd. are in the worst position with marginal status. Among 6 Islamic banks, 5 are in a fair position and only 1 in a marginal position in 2019. Shahjalal Islami Bank Ltd. secures the top position (Score 2.8) with fair status and Social Islami Bank Ltd. is in the worst position with marginal status. Independent sample test is used to see whether there is any significant difference between Islamic and Conventional PCBs concerning CAMEL parameters. The study finds that except for liquidity there is no significant difference in capital adequacy, asset quality, management quality, and earnings quality. The study also reveals that there is no significant difference in the average CAMEL ratings of two types of Banking. However, on average Islamic banks have better asset quality, management quality while conventional banks have better capital adequacy, earnings, and liquidity.

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