LIQUIDITY AND CREDIT RISK: A COMPARATIVE STUDY OF ISLAMIC AND CONVENTIONAL BANKS IN INDONESIA
DOI:
https://doi.org/10.32332/finansia.v7i1.8918Keywords:
Liquidity; Credit Risk; Islamic and Conventional BankAbstract
Islamic banking is only a small choice for the majority of Indonesian Muslims numbering 229.62 million people or 87.2%. In contrast, the market share of Islamic banks is only 7.07%. Global banking conditions are rocked by the case of Silicon Valley Bank, which is one of the largest banks in the world, experiencing liquidity problems. This is inseparable from the fragility of the conventional banking system based on usury as an inherent obligation. This study analyzes the liquidity and credit risk comparison of Islamic and conventional banks in Indonesia. The sample in this study is 10 Islamic banks and the 10 largest conventional banks in terms of assets in the 2018-2022 period. Independent t-test is used to answer the problems in this study. Based on the results of independent t test show that there is no difference between the liquidity of Islamic and conventional banks. Likewise, NPF / NPL shows no difference between Islamic and conventional banks.
Downloads
Download data is not yet available.
References
Ali, Mohsin., Khattak, Mudeer Ahmed., And Alam, Nafis. “Credit Risk In Dual Banking Systems: Does Competition Matter? Empirical Evidence.” International Journal Of Emerging Markets, Vol. 18, No. 4, 2023. https://doi.org/10.1108/IJOEM-01-2020-0035.
Alzalabani, Abdulmonem., And Nair, Reji D. “Financial Recession, Credit Crunch And Islamic Banks: A Case Study Of Al Rajhi Bank In The Kingdom Of Saudi Arabia.” East-West. Journal Of Economics And Business, Vol. 16, No. 1, 2013.
Asiam, Siti., Dan Rahmawati, Ririn. “Faktor-Faktor Yang Mempengaruhi Kebijakan Dividen Pada Perusahaan LQ45.” AKTSAR: Jurnal Akuntansi Syariah, Vol. 5, No. 2, 2022. http://dx.doi.Org/10.21043/Aktsar.V5i2.18156.
Aziz, Zeti Akhtar. “Enhancing The Resilience And Stability Of The Islamic Financial System.” Islamic Financial Services Board And Institute Of International Finance Conference: "Enhancing The Resilience And Stability Of The Islamic Financial System, 2008.
Azlina, Nur., Maesarach, R. Melda., And Said, Muhammad. “Islamic Economic Methodology Aproach To Achieve Economic Equity: Epistemological Study.” Baskara: Journal Of Business And Entrepreneurship, Vol. 4, No. 2, 2022.
Azlina, Nur., Shabri, Husni., Dan Qizam, Ibnu. “Determinan Profil Risiko Terhadap Performance Bank Pembiayaan Rakyat Syariah Di Provinsi Sumatera Barat.” Al-Bank: Journal Of Islamic Banking And Finance, Vol. 3, No. 2, 2023.
Bahemia, Nuh. The Resilience Of Islamic Banks In The Wake Of Crises: Comparing Islamic And Conventional Banks In The MENA Region, 2019.
Chamberlain, Trevor., Hidayat, Sutan., Dan Khokhar, Abdul Rahman. “Credit Risk In Islamic Banking: Evidence From The GCC.” Journal Of Islamic Accounting And Business Research, Vol. 11, No. 5, 2020. https://doi.org/10.1108/JIABR-09-2017-0133.
Dolgun, Muhammed Habib., And Mirakhor, Abbas. An Alternative Approach To Liquidity Risk Management Of Islamic Banks. Berlin: Walter De Gruyter Gmbh, 2021.
Eid, Wael Kamal., And Asutay, Mehmet. Mapping The Risk And Risk Management Practice In Islamic Banking. Singapore: John Wiley And Sons Singapore Pte. Ltd, 2019.
Firdaus, Firdaus., Hambali, Risman., Dan Ziani, Alvi. “Analisis Komparatif Kinerja Keuangan Bank Syariah Di Kawasan Asia Tenggara.” Inspirasi Ekonomi: Jurnal Ekonomi Manajemen, Vol. 5, No. 3, 2023.
Firdaus, Firdaus., Saifullah, Saifullah., Huda, Nurul., Dan Firhan, Idad. “Analisis Rasio Profitabilitas Pada PT. Bank Muamalat Tbk. Tahun Periode 2015-2019.” Jurnal Proaksi, Vol. 8, No. 1. 2021.
Gogo, Takuanara Lalu., Dan Arundina, Tika. “Analysis Of Factors Affecting Liquidity Risk In Indonesian Islamic Banking.” International Journal Of Business And Economy, Vol. 3, No. 1, 2021.
Haron, Razali., Husin, Maizaitulaidawati Md., Dan Murg, Michael. Banking And Finance. UK: Bod–Books On Demand, 2020.
Hasibuan, Abdul Nasser., Annam, Rahmad., Dan Nofianawati, Nofianawati. Audit Bank Syariah. Jakarta: Kencana, 2020. https://doi.org/10.31436/jif.v9i1.373.
Huda, Nurul. Keuangan Publik Islami: Pendekatan Teoritis Dan Sejarah. Jakarta: Prenadamedia Group, 2017.
Islam, Amir., Dan Amir, Sabeen. “Liquidity Problems In Islamic Banks; Reasons, Impacts And Solutions.” COMSATS Journal Of Islamic Finance, Vol. 1, No. 1, 2016.
Jaara, Osama Omar., Jaara, Bassam Omar., Shamieh, Jamal., And Fendi, Usama Adnan. “Liquidity Risk Exposure In Islamic And Conventional Banks.” International Journal Of Economics And Financial Issues, Vol. 7, No. 6, 2017.
Jameel, Muhammad Anas., Dan Siddiqui, Danish Ahmed. “The Effect Of Credit, And Liquidity Risk, Along With Capital Adequacy And Audit Quality On Bank’s Financial Stability: A Comparative Study Between Islamic And Conventional Banks Of Pakistan.” Along With Capital Adequacy And Audit Quality On Bank’s Financial Stability: A Comparative Study Between Islamic And Conventional Banks Of Pakistan, 2023.
Javaria, Kiran., and Masood, Omar. Risk Management Implementation And Solutions For Islamic Banking And Finance. UK: Cambridge Scholars Publishing, 2019.
Khan, Imran., Khan, Mehreen., And Tahir, Muhammad. “Performance Comparison Of Islamic And Conventional Banks: Empirical Evidence From Pakistan.” International Journal Of Islamic And Middle Eastern Finance And Management, Vol. 10, No. 31, 2017.
Laurentia, Paula., Dan Lindrawati, Lindrawati. “Pengaruh Capital Adequacy Ratio Dan Financing Deposit Ratio Terhadap Laba Bank Umum Syariah.” Journal Akuntansi Kontemporer, Vol, 2, No. 1, 2010.
Miah, Mohammad Dulal., And Uddin, Helal. “Efficiency and Stability: A Comparative Study Between Islamic And Conventional Banks In Gcc Countries.” Future Business Journal, Vol. 3, No. 2, 2017. https://doi.org/10.1016/j.fbj.2017.11.001.
Mirjalili, Seyed Hossein. “The Resilience Of Islamic Banks And Conventional Banks In The Global Financial Crisis.” Conference Of Islamic Finance, 2016.
Molyneux, Philip. Non Performing Loans And Resolving Private Sector Insolvency. Switzerland: Springer International Publishing, 2017.
Onakoya, Babatunde Adegbemi., And Onakoya, Adekola Olaitan. “The Performance Of Conventional And Islamic Banks In The United Kingdom: A Comparative Analysis.” Journal Of Research In Economics And International Finance, Vol. 2, No. 2, 2013.
Pandia, Frianto. Manajemen Dana Dan Kesehatan Bank. Jakarta: Rineka Cipta, 2012.
Safdar, Raheel., Fatima, Afira., And Sajid, Memoona. “Efficiency, Liquidity Risk And Asset Quality: A Comparative Analysis Of Islamic And Conventional Banks In Pakistan.” Journal Of Islamic Accounting And Business Research, 2024. https://doi.org/10.1108/JIABR-03-2023-0079.
Sharma, F. C. Financial Markets Institutions And Services. Inggris: SBPD Publication, 2021.
Sonko, Muhammed. “Customers’ Perceptions On Islamic Banking: A Case Study In The Gambia.” Journal Of Islamic Finance, Vol. 9, No. 1, 2020.
Susamto, Akhmad Akbar., Quirira, Octavio Danes., And Kusuma, Wardani Dyah Titis. “Comparing Credit Risk In Islamic And Conventional Banking Using Bank-Level Panel Data.” Economica: Jurnal Ekonomi Islam, Vol. 11, No. 2, 2020. 10.21580/economica.2020.11.2.5027.
Tlemsani, Issam., And Al Suwaidi, Huda. “Comparative Analysis Of Islamic And Conventional Banks In The UAE During The Financial Crisis.” Asian Economic And Review Financial, Vol. 6, No. 6, 2016.
Visser, Han. Islamic Finance: Principles And Practice. USA: Edward Elgar Publishing, 2019.
Zaheer, Sajjad, And Moazzam, Farooq. “Liquidity Crisis: Are Islamic Banking Institutions More Resilient.” IMF Conference On Macroeconomic Challenges Facing Low-Income Countries, 2014.
Illahi, Mery Kurnia., Firdaus, Firdaus., And Fakhruddin, Imam. “Islamic Banking Performance Based On Profitability Approach Of Indonesia Malaysia Islamic Banks.” Talaa: Journal Of Islamic Finance, Vol. 3, No. 2, 2023.
Alzalabani, Abdulmonem., And Nair, Reji D. “Financial Recession, Credit Crunch And Islamic Banks: A Case Study Of Al Rajhi Bank In The Kingdom Of Saudi Arabia.” East-West. Journal Of Economics And Business, Vol. 16, No. 1, 2013.
Asiam, Siti., Dan Rahmawati, Ririn. “Faktor-Faktor Yang Mempengaruhi Kebijakan Dividen Pada Perusahaan LQ45.” AKTSAR: Jurnal Akuntansi Syariah, Vol. 5, No. 2, 2022. http://dx.doi.Org/10.21043/Aktsar.V5i2.18156.
Aziz, Zeti Akhtar. “Enhancing The Resilience And Stability Of The Islamic Financial System.” Islamic Financial Services Board And Institute Of International Finance Conference: "Enhancing The Resilience And Stability Of The Islamic Financial System, 2008.
Azlina, Nur., Maesarach, R. Melda., And Said, Muhammad. “Islamic Economic Methodology Aproach To Achieve Economic Equity: Epistemological Study.” Baskara: Journal Of Business And Entrepreneurship, Vol. 4, No. 2, 2022.
Azlina, Nur., Shabri, Husni., Dan Qizam, Ibnu. “Determinan Profil Risiko Terhadap Performance Bank Pembiayaan Rakyat Syariah Di Provinsi Sumatera Barat.” Al-Bank: Journal Of Islamic Banking And Finance, Vol. 3, No. 2, 2023.
Bahemia, Nuh. The Resilience Of Islamic Banks In The Wake Of Crises: Comparing Islamic And Conventional Banks In The MENA Region, 2019.
Chamberlain, Trevor., Hidayat, Sutan., Dan Khokhar, Abdul Rahman. “Credit Risk In Islamic Banking: Evidence From The GCC.” Journal Of Islamic Accounting And Business Research, Vol. 11, No. 5, 2020. https://doi.org/10.1108/JIABR-09-2017-0133.
Dolgun, Muhammed Habib., And Mirakhor, Abbas. An Alternative Approach To Liquidity Risk Management Of Islamic Banks. Berlin: Walter De Gruyter Gmbh, 2021.
Eid, Wael Kamal., And Asutay, Mehmet. Mapping The Risk And Risk Management Practice In Islamic Banking. Singapore: John Wiley And Sons Singapore Pte. Ltd, 2019.
Firdaus, Firdaus., Hambali, Risman., Dan Ziani, Alvi. “Analisis Komparatif Kinerja Keuangan Bank Syariah Di Kawasan Asia Tenggara.” Inspirasi Ekonomi: Jurnal Ekonomi Manajemen, Vol. 5, No. 3, 2023.
Firdaus, Firdaus., Saifullah, Saifullah., Huda, Nurul., Dan Firhan, Idad. “Analisis Rasio Profitabilitas Pada PT. Bank Muamalat Tbk. Tahun Periode 2015-2019.” Jurnal Proaksi, Vol. 8, No. 1. 2021.
Gogo, Takuanara Lalu., Dan Arundina, Tika. “Analysis Of Factors Affecting Liquidity Risk In Indonesian Islamic Banking.” International Journal Of Business And Economy, Vol. 3, No. 1, 2021.
Haron, Razali., Husin, Maizaitulaidawati Md., Dan Murg, Michael. Banking And Finance. UK: Bod–Books On Demand, 2020.
Hasibuan, Abdul Nasser., Annam, Rahmad., Dan Nofianawati, Nofianawati. Audit Bank Syariah. Jakarta: Kencana, 2020. https://doi.org/10.31436/jif.v9i1.373.
Huda, Nurul. Keuangan Publik Islami: Pendekatan Teoritis Dan Sejarah. Jakarta: Prenadamedia Group, 2017.
Islam, Amir., Dan Amir, Sabeen. “Liquidity Problems In Islamic Banks; Reasons, Impacts And Solutions.” COMSATS Journal Of Islamic Finance, Vol. 1, No. 1, 2016.
Jaara, Osama Omar., Jaara, Bassam Omar., Shamieh, Jamal., And Fendi, Usama Adnan. “Liquidity Risk Exposure In Islamic And Conventional Banks.” International Journal Of Economics And Financial Issues, Vol. 7, No. 6, 2017.
Jameel, Muhammad Anas., Dan Siddiqui, Danish Ahmed. “The Effect Of Credit, And Liquidity Risk, Along With Capital Adequacy And Audit Quality On Bank’s Financial Stability: A Comparative Study Between Islamic And Conventional Banks Of Pakistan.” Along With Capital Adequacy And Audit Quality On Bank’s Financial Stability: A Comparative Study Between Islamic And Conventional Banks Of Pakistan, 2023.
Javaria, Kiran., and Masood, Omar. Risk Management Implementation And Solutions For Islamic Banking And Finance. UK: Cambridge Scholars Publishing, 2019.
Khan, Imran., Khan, Mehreen., And Tahir, Muhammad. “Performance Comparison Of Islamic And Conventional Banks: Empirical Evidence From Pakistan.” International Journal Of Islamic And Middle Eastern Finance And Management, Vol. 10, No. 31, 2017.
Laurentia, Paula., Dan Lindrawati, Lindrawati. “Pengaruh Capital Adequacy Ratio Dan Financing Deposit Ratio Terhadap Laba Bank Umum Syariah.” Journal Akuntansi Kontemporer, Vol, 2, No. 1, 2010.
Miah, Mohammad Dulal., And Uddin, Helal. “Efficiency and Stability: A Comparative Study Between Islamic And Conventional Banks In Gcc Countries.” Future Business Journal, Vol. 3, No. 2, 2017. https://doi.org/10.1016/j.fbj.2017.11.001.
Mirjalili, Seyed Hossein. “The Resilience Of Islamic Banks And Conventional Banks In The Global Financial Crisis.” Conference Of Islamic Finance, 2016.
Molyneux, Philip. Non Performing Loans And Resolving Private Sector Insolvency. Switzerland: Springer International Publishing, 2017.
Onakoya, Babatunde Adegbemi., And Onakoya, Adekola Olaitan. “The Performance Of Conventional And Islamic Banks In The United Kingdom: A Comparative Analysis.” Journal Of Research In Economics And International Finance, Vol. 2, No. 2, 2013.
Pandia, Frianto. Manajemen Dana Dan Kesehatan Bank. Jakarta: Rineka Cipta, 2012.
Safdar, Raheel., Fatima, Afira., And Sajid, Memoona. “Efficiency, Liquidity Risk And Asset Quality: A Comparative Analysis Of Islamic And Conventional Banks In Pakistan.” Journal Of Islamic Accounting And Business Research, 2024. https://doi.org/10.1108/JIABR-03-2023-0079.
Sharma, F. C. Financial Markets Institutions And Services. Inggris: SBPD Publication, 2021.
Sonko, Muhammed. “Customers’ Perceptions On Islamic Banking: A Case Study In The Gambia.” Journal Of Islamic Finance, Vol. 9, No. 1, 2020.
Susamto, Akhmad Akbar., Quirira, Octavio Danes., And Kusuma, Wardani Dyah Titis. “Comparing Credit Risk In Islamic And Conventional Banking Using Bank-Level Panel Data.” Economica: Jurnal Ekonomi Islam, Vol. 11, No. 2, 2020. 10.21580/economica.2020.11.2.5027.
Tlemsani, Issam., And Al Suwaidi, Huda. “Comparative Analysis Of Islamic And Conventional Banks In The UAE During The Financial Crisis.” Asian Economic And Review Financial, Vol. 6, No. 6, 2016.
Visser, Han. Islamic Finance: Principles And Practice. USA: Edward Elgar Publishing, 2019.
Zaheer, Sajjad, And Moazzam, Farooq. “Liquidity Crisis: Are Islamic Banking Institutions More Resilient.” IMF Conference On Macroeconomic Challenges Facing Low-Income Countries, 2014.
Illahi, Mery Kurnia., Firdaus, Firdaus., And Fakhruddin, Imam. “Islamic Banking Performance Based On Profitability Approach Of Indonesia Malaysia Islamic Banks.” Talaa: Journal Of Islamic Finance, Vol. 3, No. 2, 2023.
Downloads
Published
2024-06-10
Issue
Section
Articles
License
Copyright (c) 2024 Firdaus Firdaus, Nur Azlina, Imam Fakhruddin, Rino Riyaldi, Romzie RosmanAuthors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
How to Cite
LIQUIDITY AND CREDIT RISK: A COMPARATIVE STUDY OF ISLAMIC AND CONVENTIONAL BANKS IN INDONESIA. (2024). FINANSIA : Jurnal Akuntansi Dan Perbankan Syariah, 7(1), 103-116. https://doi.org/10.32332/finansia.v7i1.8918
