Financial Performance Comparison (Empiric Study on Conventional Commercial Banks and Sharia Commercial Banks 2012-2018)

Akhmadi Akhmadi Akhmadi,Ernis Chaerunisa,Shinta Zahra Chaerunisa

doi:10.47312/ambr.v6i1.439

Akhmadi Akhmadi Akhmadi, Ernis Chaerunisa + Show 1 more

Open Access

https://doi.org/10.47312/ambr.v6i1.439

Copy DOI

Abstract

<p>This study aims to examine more the comparison of financial performance between Islamic Commercial Banks and Conventional Commercial Banks. The population in this study includes conventional banking companies and Islamic banking which are listed on the Indonesia Stock Exchange and supervised by the Financial Services Authority (OJK) for the period 2012-2018 as many as 114 companies. The observational data used were 56 data from 14 general and Islamic banks which were sampled in this study. The method of analysis used the normality test, the independent sample t-test, and the Mann-Whitney test. The results showed that tThere is no significant difference in the Capital Adequency Ratio between Conventional Commercial Banks and Islamic Commercial Banks, There is a significant difference in non-performing loans / financing (NPL / NPF) between Conventional Commercial Banks and Islamic Commercial Banks, there is a significant difference in return on assets (ROA) between Commercial Banks Conventional with Islamic Commercial Banks, there is a significant difference in operating expenses to operating revenue (BOPO) between Conventional Commercial Banks and Islamic Commercial Banks, there is a significant difference in loan / financing to deposit ratio between Conventional Commercial Banks and Shari'ah Commercial Banks.</p>

Highlights

Every society is inseparable from economic activities and these activities certainly require transactions
Banks and Islamic Commercial Banks, indicating that the main difference between Islamic banking isapply a fixed interest charge on customer funds, as applied to conventional banking does not cause a significant difference in Capital Adequency Ratio (CAR)
There is a significant difference in non-performing loan / financing (NPL / NPF) between Conventional Commercial Banks and Islamic Commercial Banks, indicating that Islamic Commercial Banks are better than conventional commercial banks in managing NPL / NPF, because they do not have or are still very limited in the general corporate segment. has a high level of risk

Summary

Introduction

Every society is inseparable from economic activities and these activities certainly require transactions. Transactions are often carried out through a face-to-face process or transfer of funds through banks. The existence of two different banking systems in Indonesia triggers competition, this is because each bank must be more trustworthy and have its own advantages to gain loyalty from both customers and investors. For investors who rely on fundamental information, the source of information used as the basis for decision making is financial reports, in addition to other non-fundamental information. Financial reports issued by companies are a form of communication from management to investors. From these financial reports, investors can assess the performance of management

Objectives

Methods

Discussion

Conclusion