Indonesia Conference Directory

This paper analyzes the trends and cross-sectional variations of non-lending income in Islamic and conventional banking. Using unbalanced panel data from 112 banks in Indonesia, this paper further analyzes if the trends and cross-sectional variations of non-lending income in Islamic and conventional banking depend on the same factors. The analyses are based on dynamic panel data regression estimations, in which heteroscedasticity robust standard errors are used. The results indicate that the trends and cross-sectional variations of non-lending income in Islamic banking tend to respond differently to several bank characteristics than to those in conventional banking.