COMPARISON ANALYSIS OF FINANCIAL PERFORMANCE ON SHARIAH BANKING (Case Study In Indonesia And Malaysia)
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Date
2009-08-06
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International Business Academics Consortium Academiy of Taiwan Information Systems Research College of Business National Taipei University
Abstract
Banking Corporation has a very significant role in economic parts of a country, because Bank has a strategic function in developing the country. Nowadays, there are two systems in banking corporation. These two are conventional system (using interest based income), and the other one is Islamic banking system (using profit sharing based income). In the early appearance, Islamic banking was just some alternative system in financial and economic world. But as time goes by, it’s no longer just a second choice, but it begins to be a solution for them who want to be part of a fairer economic system. Besides, most Moslem community is much more aware that conventional banking system is no longer provide their needs, which is to get non-interest based income, as their faith ask to. Malaysia is one of the first nations to implement Islamic banking system. Indonesia itself begins to apply it in early 90’s, 1991 for the exact year. On that case, it’s very interesting for the writer to see closely, what is exactly the differences between Islamic banking in Indonesia and Malaysia. The result is there are no significant differences in finance performances between Islamic Bank in Indonesia and Malaysia.
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Keywords
Banking System, Financial Performance