Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models

The present study, grounded in theory of financial intermediation, provides new empirical evidence on comparison of bank stability measures of Islamic banks, conventional banks and other models in Indonesia. Specifically, 72 conventional banks, 4 Islamic banks, 3 conventional banks with Islamic subs...

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Main Authors: Abdul Karim, Norzitah, Syed Jaafar Alhabshi, Syed Musa, Kassim, Salina, Haron, Razali
Format: Article
Language:English
Published: Bank of Indonesia 2018
Subjects:
Online Access:http://irep.iium.edu.my/63285/
http://irep.iium.edu.my/63285/
http://irep.iium.edu.my/63285/1/63285_Comparative%20analysis%20of%20bank%20stability%20in%20Indonesia.pdf
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spelling iium-632852018-04-23T04:30:08Z http://irep.iium.edu.my/63285/ Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models Abdul Karim, Norzitah Syed Jaafar Alhabshi, Syed Musa Kassim, Salina Haron, Razali HG1501 Banking The present study, grounded in theory of financial intermediation, provides new empirical evidence on comparison of bank stability measures of Islamic banks, conventional banks and other models in Indonesia. Specifically, 72 conventional banks, 4 Islamic banks, 3 conventional banks with Islamic subsidiaries and 2 subsidiary Islamic banks in Indonesia are considered, focusing on the sample period of 1999-2015. The study adopts z-score as a measure of bank stability, while a non-parametric multiple comparison analysis was used to test the significance of the differences in the bank stability of the different bank models, namely Islamic banks, conventional banks, subsidiary Islamic banks and conventional banks with Islamic subsidiaries. The sample period is further divided into three sub-periods, namely before the global financial crisis (1990-2006), during the global financial crisis (2007-2009) and after the global financial crisis (2010-2015) so as to gain more detail findings on the impact of the global financial crisis on the banks' stability. The impact of local crisis periods (1999-2001) on bank stability of different bank models is also investigated. Findings of this study contribute towards extending the theory of financial intermediation through empirical works of stability of different banking models namely Islamic banks, conventional banks, subsidiary banks and conventional banks with Islamic subsidiaries. Bank of Indonesia 2018-04-18 Article PeerReviewed application/pdf en http://irep.iium.edu.my/63285/1/63285_Comparative%20analysis%20of%20bank%20stability%20in%20Indonesia.pdf Abdul Karim, Norzitah and Syed Jaafar Alhabshi, Syed Musa and Kassim, Salina and Haron, Razali (2018) Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models. Journal of Islamic Monetary Economics and Finance, 3 (2). pp. 201-219. ISSN 2460-6146 E-ISSN 2460-6618 http://jimf-bi.org/index.php/JIMF/article/view/891
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Abdul Karim, Norzitah
Syed Jaafar Alhabshi, Syed Musa
Kassim, Salina
Haron, Razali
Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models
description The present study, grounded in theory of financial intermediation, provides new empirical evidence on comparison of bank stability measures of Islamic banks, conventional banks and other models in Indonesia. Specifically, 72 conventional banks, 4 Islamic banks, 3 conventional banks with Islamic subsidiaries and 2 subsidiary Islamic banks in Indonesia are considered, focusing on the sample period of 1999-2015. The study adopts z-score as a measure of bank stability, while a non-parametric multiple comparison analysis was used to test the significance of the differences in the bank stability of the different bank models, namely Islamic banks, conventional banks, subsidiary Islamic banks and conventional banks with Islamic subsidiaries. The sample period is further divided into three sub-periods, namely before the global financial crisis (1990-2006), during the global financial crisis (2007-2009) and after the global financial crisis (2010-2015) so as to gain more detail findings on the impact of the global financial crisis on the banks' stability. The impact of local crisis periods (1999-2001) on bank stability of different bank models is also investigated. Findings of this study contribute towards extending the theory of financial intermediation through empirical works of stability of different banking models namely Islamic banks, conventional banks, subsidiary banks and conventional banks with Islamic subsidiaries.
format Article
author Abdul Karim, Norzitah
Syed Jaafar Alhabshi, Syed Musa
Kassim, Salina
Haron, Razali
author_facet Abdul Karim, Norzitah
Syed Jaafar Alhabshi, Syed Musa
Kassim, Salina
Haron, Razali
author_sort Abdul Karim, Norzitah
title Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models
title_short Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models
title_full Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models
title_fullStr Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models
title_full_unstemmed Comparative analysis of bank stability in Indonesia: A non-parametric approach on different banking models
title_sort comparative analysis of bank stability in indonesia: a non-parametric approach on different banking models
publisher Bank of Indonesia
publishDate 2018
url http://irep.iium.edu.my/63285/
http://irep.iium.edu.my/63285/
http://irep.iium.edu.my/63285/1/63285_Comparative%20analysis%20of%20bank%20stability%20in%20Indonesia.pdf
first_indexed 2023-09-18T21:29:45Z
last_indexed 2023-09-18T21:29:45Z
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