Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia
urpose – This paper aims to examine how Indonesian Islamic banks differ from conventional banks in terms of their business model, asset quality, stability and efficiency. Design/methodology/approach – Based on data from 2008 to 2012, the authors use t-test, z-score and data envelopment analysis (DE...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English English |
| Published: |
Emerald Group Publishing Ltd.
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/64515/ http://irep.iium.edu.my/64515/ http://irep.iium.edu.my/64515/ http://irep.iium.edu.my/64515/1/64515_Efficiency%2C%20stability%20and%20asset%20quality.pdf http://irep.iium.edu.my/64515/2/64515_Efficiency%2C%20stability%20and%20asset%20quality_SCOPUS.pdf http://irep.iium.edu.my/64515/13/64515%20Efficiency%2C%20stability%20and%20asset%20quality%20of%20Islamic%20vis-%C3%A0-vis%20conventional%20banks_wos.pdf |
| Summary: | urpose – This paper aims to examine how Indonesian Islamic banks differ from conventional banks in terms of their business model, asset quality, stability and efficiency.
Design/methodology/approach – Based on data from 2008 to 2012, the authors use t-test, z-score and data envelopment analysis (DEA) to assess the business model, as well as the asset quality, stability and efficiency of both the Islamic and conventional banks.
Findings – The results indicate that there are significant differences between the two – Islamic banks appear to not follow the conventional business model. Secondly, Islamic banks seem to have better asset quality and to be more stable than their conventional counterparts.
Originality/value – Finally, the DEA results also indicate that Islamic banks are relatively more efficient
than conventional banks, as shown by their higher overall efficiency, as well as technical efficiency. |
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