COMPARATIVE ANALYSIS OF FINANCIAL DISTRESS ISLAMIC FOREIGN BANKS AND CONVENTIONAL NON-FOREIGN BANKS
Siti Dalilah, Sujarwo , Sabar Warsini
Politeknik Negeri Jakarta
Abstract
According to Indonesian Financial Service Authority, Islamic Bank has reached 5,70 % market share in the last five years. For acknowledge this, it represents that Islamic Banking has shown up the good performance i.e. the growth of total asset year by year has been increased. The opposite condition between the growth of Islamic Bank-s Asset and Islamic Bank-s performance, these can be disclosure from credit risk, operational expenses, net profit, and capital. Therefore, this research aims to determine the effect of risk profile, liquidity, earnings, efficiency, and capital on the condition of financial distress using Multiple Linear Regression and Springate-Score. It also compares between Islamic Bank and Conventional Bank within Mann Whitney Test. The study conducted in the scope of Bank in Indonesia; with the object of study are Islamic Foreign Banks and Conventional Non-Foreign Banks. Sample of this research are 13 Banks.
Keywords: market share, financial distress, springate score,multiple regression, mann whitney test, islamic foreign banks, conventional non-foreign banks
Topic: Islamic Finance and Banking