Islamic and Conventional Banks Stability: A Comparative Analysis

DOI

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.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the International Conference, Integrated Microfinance Management for Sustainable Community Development (IMM 2016)
PB  - Atlantis Press
SP  - 8
EP  - 13
SN  - 2352-5428
UR  - https://doi.org/10.2991/imm-16.2016.2
DO  - 10.2991/imm-16.2016.2
ID  - Santoso2016/10
ER  -