Proceedings of the International Conference, Integrated Microfinance Management for Sustainable Community Development (IMM 2016)

Islamic and Conventional Banks Stability: A Comparative Analysis

Authors
Teguh Santoso, Irlan Rum, Kinanti Z Patria
Corresponding Author
Teguh Santoso
Available Online October 2016.
DOI
https://doi.org/10.2991/imm-16.2016.2How to use a DOI?
Keywords
Islamic banks, conventional banks, stability, z-score, panel data
Abstract
This paper will attempt to measure the financial stability for Islamic and conventional banks and compare the result of finansial stability between two kinds of banks. In this study, financial stability will be measured using z-scores. The data sample used in this study include 4 Indonesian Islamic bank and 4 Indonesian conventional banks, which is represent by 2 larger bank and 2 smaller one. After got z-score, descriptive statistic and stationarity test also conducting to compare the stability result both of banks. A comparative study showed that conventional banks maybe more stable than Islamic banks. Regression analysis using fixed effect model were conducted to investigate the factors influence banks stability. Regression result showed the factor which have a significant influence to banks stability are Islamic dummy, size of banks and cost to income ratio. While the others variable such us credit to asset ratio, income diversity and Islamic banks income diversity have no significant effect to banks stability, however, have a correct sign for all variables.
Open Access
This is an open access article distributed under the CC BY-NC license.

Download article (PDF)

Cite this article

TY  - CONF
AU  - Teguh Santoso
AU  - Irlan Rum
AU  - Kinanti Z Patria
PY  - 2016/10
DA  - 2016/10
TI  - Islamic and Conventional Banks Stability: A Comparative Analysis
BT  - International Conference, Integrated Microfinance Management for Sustainable Community Development(IMM 2016)
PB  - Atlantis Press
SN  - 2352-5428
UR  - https://doi.org/10.2991/imm-16.2016.2
DO  - https://doi.org/10.2991/imm-16.2016.2
ID  - Santoso2016/10
ER  -