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 |
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Emerald Group Publishing Ltd.
2018
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| Online Access: | 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 |
| _version_ | 1848786229778186240 |
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| author | Sakti, Muhammad Rizky Prima Mohamad, Azhar |
| author_facet | Sakti, Muhammad Rizky Prima Mohamad, Azhar |
| author_sort | Sakti, Muhammad Rizky Prima |
| building | IIUM Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T17:05:43Z |
| format | Article |
| id | iium-64515 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T17:05:43Z |
| publishDate | 2018 |
| publisher | Emerald Group Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-645152019-01-24T03:20:40Z http://irep.iium.edu.my/64515/ Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia Sakti, Muhammad Rizky Prima Mohamad, Azhar HG3368 Islamic Banking and Finance 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. Emerald Group Publishing Ltd. 2018-05-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/64515/1/64515_Efficiency%2C%20stability%20and%20asset%20quality.pdf application/pdf en http://irep.iium.edu.my/64515/2/64515_Efficiency%2C%20stability%20and%20asset%20quality_SCOPUS.pdf application/pdf en http://irep.iium.edu.my/64515/13/64515%20Efficiency%2C%20stability%20and%20asset%20quality%20of%20Islamic%20vis-%C3%A0-vis%20conventional%20banks_wos.pdf Sakti, Muhammad Rizky Prima and Mohamad, Azhar (2018) Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia. Journal of Islamic Accounting and Business Research, 9 (3). pp. 378-400. ISSN 1759-0817 https://www.emeraldinsight.com/doi/full/10.1108/JIABR-07-2015-0031 10.1108/JIABR-07-2015-0031 |
| spellingShingle | HG3368 Islamic Banking and Finance Sakti, Muhammad Rizky Prima Mohamad, Azhar Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia |
| title | Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia |
| title_full | Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia |
| title_fullStr | Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia |
| title_full_unstemmed | Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia |
| title_short | Efficiency, stability and asset quality of Islamic vis-à-vis conventional banks: evidence from Indonesia |
| title_sort | efficiency, stability and asset quality of islamic vis-à-vis conventional banks: evidence from indonesia |
| topic | HG3368 Islamic Banking and Finance |
| url | 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 |