Comparison of Sharia and Conventional Banking Bankruptcy Rates in Indonesia

Fakhri, Ulumuddin Nurul; Anwar, Saiful; Ismal, Rifki; Ascarya, _

doi:10.30993/tifbr.v13i2.193

Cited by 2 publications

(4 citation statements)

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“…These results prove that Islamic banking is still vulnerable in facing external factors. These results are also in accordance with research (Fakhri, 2020) where Islamic banking is in third place. According to the Financial Services Authority Regulation No.…”

Section: Islamic Banking Cbgbsupporting

confidence: 92%

“…Furthermore, the data will be processed using an Artificial Neural Network to obtain the factors that affect the financial performance of Islamic and conventional banking. Finally, the results of the factors that influence the financial performance of Islamic banking will be compared with the factors that affect conventional financial performance by confirming the results of previous studies, namely the research of Fakhri et al (2020).…”

Section: Previous Studiessupporting

confidence: 72%

“…These results indicate that the ANN method is very relevant to use in this study. Likewise, with the research of Fakhri et al (2020) where the results of this study prove that the Artificial Neural Network (ANN) is very relevant in determining factors that affect the financial performance of Islamic and conventional banking.…”

Section: Methodsmentioning

confidence: 65%

“…In a previous study, Fakhri et al (2020) stated that the bankruptcy rate of Islamic banking in CBGB 2 is in the gray zone and is ranked 3. This means that it is very vulnerable to external conditions, such as inflation.…”

Section: Introductionmentioning

confidence: 99%

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Comparison of Islamic and Conventional Banking Financial Performance during the Covid-19 Period

Fakhri¹,

Darmawan

2021

IJIEF

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The COVID-19 pandemic that is spreading in Indonesia has affected economic growth, likewise banks sector. This study aims to determine the financial performance factors that are affected by the COVID-19 pandemic, both in Islamic and conventional banking which are included in the CBGB 2 category so that banks in Indonesia can anticipate it. This study uses the Artificial Neural Network (ANN) method with 6 financial performance variables in the period of January 2020 - September 2020, namely Capital Adequacy Ratio (%), Operating Expenses / Operating Income (%), Net Operation Margin (%), Landing on Deposits. Ratio (%), Short Term Mismatch (%) which are used as the independent variable, as well as Return on Assets which is used as the dependent variable. The results showed that the COVID-19 pandemic affected financial performance factors in the form of a Funding to Deposit Ratio of 35.21%; Short Term Mismatch of 26.92% and Net Operation Margin of 26.92% in Islamic banking. Whereas in conventional banking, Operating Expenses to Operating Income was 72.87% and the Capital Adequacy Ratio was 17.31%. This result is also in line with previous research where Islamic banking is more vulnerable than conventional banking in facing financial crises.

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Section: Islamic Banking Cbgbsupporting

confidence: 92%

Section: Previous Studiessupporting

confidence: 72%

Section: Methodsmentioning

confidence: 65%

Section: Introductionmentioning

confidence: 99%

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Comparison of Islamic and Conventional Banking Financial Performance during the Covid-19 Period

Fakhri¹,

Darmawan

2021

IJIEF

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The impacts of Covid-19 on macroeconomic indicators and the performance of Islamic banks in Indonesia

Fakhri¹,

Nuriyah

2022

J. Eko. Keu. Isl.

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Purpose – The purpose of this study was to determine the extent of the impact of Covid-19 on the macroeconomic indicators and financial performance of Islamic banks in Indonesia. The results of this study may serve as a reference for the Indonesian government and Islamic banks’ stakeholders in formulating strategic decisions in creating innovative solutions during the Covid-19 pandemic.Methodology – Quantitative research method with 2 approaches, namely Partial Least Square-Structural Equation Modeling (PLS-SEM) and Artificial Neural Networks (ANN) was selected for this study.Findings – This study demonstrated that macroeconomic indicators were significantly affected by the Covid-19 pandemic. However, the results of the ANN and PLS-SEM models varied. The PLS-SEM model illustrated the impact of the Covid-19 pandemic affecting the performance of Islamic banking, while the ANN model did not.Implication – This research has implications for stakeholders, especially the government to maintain macroeconomic stability, while for Islamic banking management to focus more on product innovation and service excellence so that it can be closer to the public, especially Muslims community.Originality – Numerous studies examining macroeconomics and the financial performance of Islamic banking have been conducted. This study aimed to offer an alternative perspective by using two models, namely PLS-SEM and ANN.

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Comparison of Sharia and Conventional Banking Bankruptcy Rates in Indonesia

Cited by 2 publications

References 0 publications

Comparison of Islamic and Conventional Banking Financial Performance during the Covid-19 Period

Comparison of Islamic and Conventional Banking Financial Performance during the Covid-19 Period

The impacts of Covid-19 on macroeconomic indicators and the performance of Islamic banks in Indonesia

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