CONVENTIONAL VERSUS ISLAMIC BANKING: WHICH IS BETTER?
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Date
2016-02-02
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2016 International Conference on Business and Information - Winter Session, International Business Academics Consortium (iBAC)
Abstract
This paper aims to examine the impacts of changes in the Capital Adequacy Ratio, Asset
Quality Productive, and Loan to Deposit Ratio, Return on Assets between Conventional
and Islamic Banking in Indonesia. The restricted F-test and Hausman estimation model
are applied and showed that The Random Effects Model is the best model to describe
the relationships. The Asset Quality Productive variable does not have impact neither
for Conventional nor Islamic Banking, whereas the Capital Adequacy Ratio variable
shows negative impact in Islamic bank.
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Keywords
Financial Performance, Conventional and Islamic Banking, The Random Effects Approach/REM