FINANCIAL STABILITY LEVEL ON BANKING INDUSTRY Comparative Analysis Between Islamic and Conventional Bank In Indonesia
DOI:
https://doi.org/10.29103/e-mabis.v18i1.281Keywords:
Conventional Banking, Islamic Banking, Financial StabilityAbstract
Financial stability in the banking industry is important because it is a dynamicand high-risk industry. The purpose of this study was to compare the stability of
Islamic and conventional banking in Indonesia by assessing the level of volatility of
Return on Assets (ROAV), managerial stability which can be seen from the value of
Tobin’s Q, Non-Performing Loans/ Financing and liquidity in both of banking and
using 11 Islamic banks and 11 conventional banks as samples. The quarterly secondary
data was used in the observation start in 2011 and will end in 2013 using panel
data regression. The results of the study explained that there are several factors, both
internal banks factors consist of banking profit before tax, credits to total assets ratio,
the ratio of loss reserves to total financing, operating expenses to income operational
ratio and macroeconomic factors include the level of the exchange rate rupiah to
USD, BI Rate, and GDP growth are significantly influence the financial stability of
Islamic and conventional banking. The conclusion indicates that the level of financial
stability of Islamic banking is still lower than conventional banking.
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