Comparative Study between Conventional and Islamic Banks during Pandemic Covid-19
DOI:
https://doi.org/10.53512/valid.v20i1.257Keywords:
credit resilience, covid-19, Islamic banks, conventional banksAbstract
The banking industry is one of the financial industries that plays a very important role in maintaining the stability of the Indonesian economy. Since the COVID-19 outbreak, economic activity has caused many individuals to wonder how Indonesia's banking sector is doing. The purpose of this study is to compare the credit resilience of Islamic and conventional banks. A dummy multiple regression analysis is the analysis technique utilized to compare the COVID-19 pandemic's pre and post-epidemic conditions. CAR, FDR/LDR, NPF/NPL, and COVID-19 pandemic as a dummy are the variables employed. Islamic and conventional banking firms listed on the Indonesian Stock Exchange make up the study's population. The COVID-19 pandemic dummy variable and the FDR variable, however, have a marginally minor effect on Islamic banking. The COVID-19 and CAR are having a major and favorable impact on conventional banking
References
Abedifar, P., Molyneux, P., & Tarazi, A. (2013). Risk in Islamic Banking. Review of Finance, 17(6), 2035–2096. https://doi.org/10.1093/rof/rfs041
Anwar, C. J., & Sunaenah, S. (2016). The Influence of Roa and Car on Bad Credit (NPL) in Commercial Banks in Indonesia. Journal of Economics-Qu, 6(2), 214–235. https://doi.org/10.35448/jequ.v6i2.4344
Arniati, Rohana, T., & Sinuhaji, E. (2018). Effect of Loan to Deposit Ratio on Non-Performing Loans. Scientific Journal: Journal of Management Science, 6(1), 77–82. https://journals.synthesispublication.org/index.php/Ilman/article/view/8
Arum, R. S. (2016). The Effect of Inflation, Financing to Deposit Ratio (FDR) and Capital Adequacy Ratio (CAR) on Non-Performing Financing (NPF) in Islamic Commercial Banks in Indonesia. Bachelor's Thesis, Jakarta: Faculty of Economics and Business UIN Syarif Hidayatullah Jakarta, 53(9), 1689–1699.
Astrini, K. S., Suwendra, I. W., & Suwarna, I. K. (2018). Effect of CAR, LDR and Bank Size on NPL in Banking Institutions Listed on the Indonesia Stock Exchange. Bisnma: Journal of Management, 4(1), 34–41.
Bahri, S. (2018). Complete Business Research Methodology with SPSS Data Processing Techniques. ANDI.
Bank Indonesia. (2014). Bank Indonesia Regulations. www.bi.go.id
Barus, A. C., & Erick. (2016). Analysis of Factors Affecting Non-Performing Loans at Commercial Banks in Indonesia. Journal of Microskilled Economics Wira, 6(2), 113–122. https://www.mikroskil.ac.id/ejurnal/index.php/jwem/article/view/325
Boumediene, A., & Caby, J. (2013). The Financial Volatility of Islamic Banks during the Subprime Crisis. Bankers Markets & Investors: An Academic & Professional Review, 126, 30–39.
Bourkhis, K., & Nabi, M. S. (2013). Islamic and Conventional Banks' Soundness During The 2007-2008 Financial Crisis. Review of Financial Economics, 22(2), 68–77. https://doi.org/10.1016/j.rfe.2013.01.001
ihák, M., & Hesse, H. (2008). Islamic Banks and Financial Stability: An Empirical Analysis. In IMF Working Paper.
Dinnuriah, N., & Hanafi, M. M. (2018). The Effect of Financial Ratios NPF, FDR, NOM, BOPO, CAR on Return on Assets in Islamic Banks. Gajah Mada University.
Elisa, F., & Busneti, I. (2015). Comparison of Performance and Credit Resilience Between Conventional Banking and Islamic Banking. Economic Media, 23(1), 55. https://doi.org/10.25105/me.v23i1.3296
ElMassah, S. (2015). Banking Sector Performance: Islamic and Conventional Banks in the UAE. International Journal of Information Technology and Business Management, 36(1).
Faiz, I. A. (2010). Islamic Banking Credit Resilience against the Global Financial Crisis. Journal of Islamic Economics La Riba, 4(2), 217–235.
Fathony, A. A., Setiawan, D., & Wulansari, E. (2021). Effect of Financing to Deposit Ratio (FDR) and Non Performing Financing (NPF) on Return on Assets (ROA) at PT. BPRS Amanah Rabbaniah Period 2015-2018. Accurate: Scientific Journal of Accounting, 12(1), 62–79.
Financial Services Authority. (2017). Indonesian Banking (Vol. 4). http://www.ojk.go.id/id/kanal/perbankan/data-dan-statistik/booklet-perbankan-indonesia/Pages/Booklet-Perbankan-Indonesia-2017.aspx
Ghozali, I. (2014). Econometrics Theory, Concepts and Applications with IBM SPSS 22 (First) Program. Diponegoro University Publishing Agency.
Hasan, M., & Dridi, J. (2010). The Effects of the Global Crisis on Islamic and Conventional Banks: a Comparative Study. In IMF Working Paper (Vol. 02, Issue 02). https://doi.org/10.1142/s1793993311000270
Kabir, N., Worthington, A., & Gupta, R. (2015). Comparative Credit Risk in Islamic and Conventional Banks. Pacific-Basin Finance Journal., 66, 37–39.
Krishnamurti, D., & Lee, Y. C. (2014). Macroprudential Policy Framework: A Practice Guide. The World Bank.
Layaman, Q.F.A.-N. (2016). Analysis of the Effect of Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) on Profitability of Islamic Banks. Al-Amwal: Journal of Islamic Banking and Economic Studies, 8(1), 305–316.
Lidyah, R. (2016). Impact of Inflation, BI Rate, Capital Adequacy Ratio (CAR), Operating Cost of Operating Income (BOPO) on Non-performing Financing (NPF) in Islamic Commercial Banks in Indonesia. I-Finance: A Research Journal on Islamic Finance, 2(1), 1–19.
Machmudi, M. I. Al. (2020). Minister of Research and Technology Calls the Real Impact of the Pandemic in September. Indonesian media. https://mediaindonesia.com/economy/339578/menristek-sebut-dampak-nyata-dari-pandemi-di-bulan-september
Miniaoui, H., & Gohou, G. (2013). Did Islamic Banking Perform Better during the Financial Crisis? : Evidence from the UAE. Journal of Islamic Economics, Banking and Finance, 9(2), 115–130. https://doi.org/10.12816/0001605
Nuryadi, Astuti, T. D., Utami, E. S., & Budiantara, M. (2017). Fundamentals of Research Statistics. Sibuku Publisher. http://lppm.mercubuana-yogya.ac.id/wp-content/uploads/2017/05/Buku-Ajar_Dasar-Dasar-Statistik-Penelitian.pdf
Rosidah, E. (2017). The Effect of Financing To Deposit Ratio on Non-Performing Financing of Islamic Banking in Indonesia. Journal of Accounting, 12(2), 128–134.
Rosman, R., Wahab, N. A., & Zainol, Z. (2014). Efficiency of Islamic Banks during the Financial Crisis: An Analysis of Middle Eastern and Asian Countries. Pacific Basin Finance Journal, 28, 76–90. https://doi.org/10.1016/j.pacfin.2013.11.001
Ryu, K., Piao, S., & Nam, D. (2012). A Comparative study between the Islamic and conventional banking systems and their implications. Scholarly Journal of Business Administration, 2(5), 48–54. http://www.scholarly-journals.com/jba/2012/May/Kyeong et al.pdf
Shafira, C. D., Titik, F., & Muslih, M. (2016). Effect of CAR, LDR, and Rupiah Exchange Rate on NPL (Study of Regional Development Banks 2011-2014). Sociohumanity Journal, 18(1), 75–84. http://download.garuda.ristekdikti.go.id/article.php?article=1078742&val=16270&title=The Effect of LDR CAR and Rupiah Exchange Rate on NPL
Sharia Banking Statistics. (2020). Sharia Banking Statistics 2020. https://www.ojk.go.id/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-syariah/default.aspx
Suhartoko, Y. B. (2020). How the COVID-19 Pandemic Could Trigger a Banking Crisis in Indonesia. The Conversation. https://theconversation.com/how-pandemi-covid-19-bisa-trigger-krisis-perbankan-di-indonesia-142559
Sutanto, H., & Umam, K. (2013). Islamic Bank Marketing Management. Faithful Library.
Yudistira, E. (2017). Comparative Analysis Between Bank Resilience in Distributing Funds to Conventional Banks and Islamic Banks in Indonesia. ADZKIYA: Journal of Sharia Law and Economics, 05(2), 209–230.
Anwar, C. J., & Sunaenah, S. (2016). The Influence of Roa and Car on Bad Credit (NPL) in Commercial Banks in Indonesia. Journal of Economics-Qu, 6(2), 214–235. https://doi.org/10.35448/jequ.v6i2.4344
Arniati, Rohana, T., & Sinuhaji, E. (2018). Effect of Loan to Deposit Ratio on Non-Performing Loans. Scientific Journal: Journal of Management Science, 6(1), 77–82. https://journals.synthesispublication.org/index.php/Ilman/article/view/8
Arum, R. S. (2016). The Effect of Inflation, Financing to Deposit Ratio (FDR) and Capital Adequacy Ratio (CAR) on Non-Performing Financing (NPF) in Islamic Commercial Banks in Indonesia. Bachelor's Thesis, Jakarta: Faculty of Economics and Business UIN Syarif Hidayatullah Jakarta, 53(9), 1689–1699.
Astrini, K. S., Suwendra, I. W., & Suwarna, I. K. (2018). Effect of CAR, LDR and Bank Size on NPL in Banking Institutions Listed on the Indonesia Stock Exchange. Bisnma: Journal of Management, 4(1), 34–41.
Bahri, S. (2018). Complete Business Research Methodology with SPSS Data Processing Techniques. ANDI.
Bank Indonesia. (2014). Bank Indonesia Regulations. www.bi.go.id
Barus, A. C., & Erick. (2016). Analysis of Factors Affecting Non-Performing Loans at Commercial Banks in Indonesia. Journal of Microskilled Economics Wira, 6(2), 113–122. https://www.mikroskil.ac.id/ejurnal/index.php/jwem/article/view/325
Boumediene, A., & Caby, J. (2013). The Financial Volatility of Islamic Banks during the Subprime Crisis. Bankers Markets & Investors: An Academic & Professional Review, 126, 30–39.
Bourkhis, K., & Nabi, M. S. (2013). Islamic and Conventional Banks' Soundness During The 2007-2008 Financial Crisis. Review of Financial Economics, 22(2), 68–77. https://doi.org/10.1016/j.rfe.2013.01.001
ihák, M., & Hesse, H. (2008). Islamic Banks and Financial Stability: An Empirical Analysis. In IMF Working Paper.
Dinnuriah, N., & Hanafi, M. M. (2018). The Effect of Financial Ratios NPF, FDR, NOM, BOPO, CAR on Return on Assets in Islamic Banks. Gajah Mada University.
Elisa, F., & Busneti, I. (2015). Comparison of Performance and Credit Resilience Between Conventional Banking and Islamic Banking. Economic Media, 23(1), 55. https://doi.org/10.25105/me.v23i1.3296
ElMassah, S. (2015). Banking Sector Performance: Islamic and Conventional Banks in the UAE. International Journal of Information Technology and Business Management, 36(1).
Faiz, I. A. (2010). Islamic Banking Credit Resilience against the Global Financial Crisis. Journal of Islamic Economics La Riba, 4(2), 217–235.
Fathony, A. A., Setiawan, D., & Wulansari, E. (2021). Effect of Financing to Deposit Ratio (FDR) and Non Performing Financing (NPF) on Return on Assets (ROA) at PT. BPRS Amanah Rabbaniah Period 2015-2018. Accurate: Scientific Journal of Accounting, 12(1), 62–79.
Financial Services Authority. (2017). Indonesian Banking (Vol. 4). http://www.ojk.go.id/id/kanal/perbankan/data-dan-statistik/booklet-perbankan-indonesia/Pages/Booklet-Perbankan-Indonesia-2017.aspx
Ghozali, I. (2014). Econometrics Theory, Concepts and Applications with IBM SPSS 22 (First) Program. Diponegoro University Publishing Agency.
Hasan, M., & Dridi, J. (2010). The Effects of the Global Crisis on Islamic and Conventional Banks: a Comparative Study. In IMF Working Paper (Vol. 02, Issue 02). https://doi.org/10.1142/s1793993311000270
Kabir, N., Worthington, A., & Gupta, R. (2015). Comparative Credit Risk in Islamic and Conventional Banks. Pacific-Basin Finance Journal., 66, 37–39.
Krishnamurti, D., & Lee, Y. C. (2014). Macroprudential Policy Framework: A Practice Guide. The World Bank.
Layaman, Q.F.A.-N. (2016). Analysis of the Effect of Capital Adequacy Ratio (CAR) and Financing to Deposit Ratio (FDR) on Profitability of Islamic Banks. Al-Amwal: Journal of Islamic Banking and Economic Studies, 8(1), 305–316.
Lidyah, R. (2016). Impact of Inflation, BI Rate, Capital Adequacy Ratio (CAR), Operating Cost of Operating Income (BOPO) on Non-performing Financing (NPF) in Islamic Commercial Banks in Indonesia. I-Finance: A Research Journal on Islamic Finance, 2(1), 1–19.
Machmudi, M. I. Al. (2020). Minister of Research and Technology Calls the Real Impact of the Pandemic in September. Indonesian media. https://mediaindonesia.com/economy/339578/menristek-sebut-dampak-nyata-dari-pandemi-di-bulan-september
Miniaoui, H., & Gohou, G. (2013). Did Islamic Banking Perform Better during the Financial Crisis? : Evidence from the UAE. Journal of Islamic Economics, Banking and Finance, 9(2), 115–130. https://doi.org/10.12816/0001605
Nuryadi, Astuti, T. D., Utami, E. S., & Budiantara, M. (2017). Fundamentals of Research Statistics. Sibuku Publisher. http://lppm.mercubuana-yogya.ac.id/wp-content/uploads/2017/05/Buku-Ajar_Dasar-Dasar-Statistik-Penelitian.pdf
Rosidah, E. (2017). The Effect of Financing To Deposit Ratio on Non-Performing Financing of Islamic Banking in Indonesia. Journal of Accounting, 12(2), 128–134.
Rosman, R., Wahab, N. A., & Zainol, Z. (2014). Efficiency of Islamic Banks during the Financial Crisis: An Analysis of Middle Eastern and Asian Countries. Pacific Basin Finance Journal, 28, 76–90. https://doi.org/10.1016/j.pacfin.2013.11.001
Ryu, K., Piao, S., & Nam, D. (2012). A Comparative study between the Islamic and conventional banking systems and their implications. Scholarly Journal of Business Administration, 2(5), 48–54. http://www.scholarly-journals.com/jba/2012/May/Kyeong et al.pdf
Shafira, C. D., Titik, F., & Muslih, M. (2016). Effect of CAR, LDR, and Rupiah Exchange Rate on NPL (Study of Regional Development Banks 2011-2014). Sociohumanity Journal, 18(1), 75–84. http://download.garuda.ristekdikti.go.id/article.php?article=1078742&val=16270&title=The Effect of LDR CAR and Rupiah Exchange Rate on NPL
Sharia Banking Statistics. (2020). Sharia Banking Statistics 2020. https://www.ojk.go.id/en/kanal/perbankan/data-dan-statistik/statistik-perbankan-syariah/default.aspx
Suhartoko, Y. B. (2020). How the COVID-19 Pandemic Could Trigger a Banking Crisis in Indonesia. The Conversation. https://theconversation.com/how-pandemi-covid-19-bisa-trigger-krisis-perbankan-di-indonesia-142559
Sutanto, H., & Umam, K. (2013). Islamic Bank Marketing Management. Faithful Library.
Yudistira, E. (2017). Comparative Analysis Between Bank Resilience in Distributing Funds to Conventional Banks and Islamic Banks in Indonesia. ADZKIYA: Journal of Sharia Law and Economics, 05(2), 209–230.
Downloads
Published
2022-12-30
How to Cite
Sari, P. R. K., Septriannisa, E., & Nuwailah, N. (2022). Comparative Study between Conventional and Islamic Banks during Pandemic Covid-19. Valid: Jurnal Ilmiah, 20(1), 42–53. https://doi.org/10.53512/valid.v20i1.257
Issue
Section
Articles
