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Profitability Comparison of Islamic Bank and Conventional Bank: Indonesia
Najiatun (a), Sri Herianingrum (b), Mohammad Yusron Sholikhin (a)

(a) Student of the Master of Science in Islamic Economics, School of Postgraduate University Press
(b) Department of Islamic Economics, Faculty of Business and Economics, University of Airlangga


Abstract

The banking industry in its development experience satisfactory results. The financial performance of bias used to measure the progress. The purpose of this study was to compare the profitability of Islamic banks and conventional banks in Indonesia period 2010-2017. The data used consists of 8 Islamic banks and 9 banks Conventional in Indonesia in the period 2010-2017. The findings of this study is a comparison of profitability (ROA) in Islamic banks and conventional banks, the dependent variable Return on Assets ( ROA) had no significant effect to Capital Adequacy Ratio ( CAR). then to Financing to Deposit Ratio ( FDR) / Loan To Deposit Ratio (LDR) had no significant effect. But for the negative influence of Islamic banks. Whereas for Non Performing Financing ( NPF) / non-performing loans (NPLs) that the results are significantly better than Islamic banks or banks conventional.

Keywords: Profitability, Islamic Bank, Conventional Bank, ROA, CAR, FDR / LDR, NPF / NPL.

Topic: Social and Economic Issues

Link: https://ifory.id/abstract/4PnMpZaEtYXe

Conference: International Conference Postgraduate School Universitas Airlangga (ICPS 2019)

Plain Format | Corresponding Author (najiatun najiatun)

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