Article Sidebar

Submitted
January 9, 2018
Accepted
January 9, 2018
Published
January 9, 2018
Download
Word(EN) PDF(ID)
Statistic
Read Counter : 343 Download : 1178

Main Article Content

Abstract

Islamic and conventional banks are in the same banking competitive industry. This study examined the comparison between the effects of external and internal factors on the bank's financing problems (NPF with NPL), with the period January 2003 - October 2015. External factors comprise of economic performance (EK), inflation (INF) and the global financial crisis dummy (D07). Meanwhile, internal factors consist of financing (FIN / LOAN) and the financing rate of return (FR). The results of cointegration test indicated that there was a long-term relationship between the external and internal factors of banks’ NPF and NPL. The results of research in general shows that external factors significantly affect the bank's NPL but not the NPF. Internal factors of the bank had a negative effect on NPF and higher influence than the NPL. This suggests that the increase in financing rate of return of Islamic banks lower the NPF. It is concluded that the financing of Islamic banks is healthier compared to that of conventional banks.

Article Details

References

  1. Aburime, U. T., & Alio, F. (2009). Islamic banking: Theories, practices, and insights for Nigeria. International Review of Business Research Papers , 5(1), 321–339. Retrieved from https://www.bizresearchpapers.com/attachments_2009_01_13/26.Toni.pdf
  2. Ali, S. S. (2006). Financial distress and bank failure: Relevance for Islamic banks. In S. S. Ali & A. Ahmad (Eds.), Islamic banking and finance: Fundamentals and contemporary issues (pp. 99–120). Jeddah, Saudi Arabia: Islamic Research & Training Institute.
  3. Anwar, M. (2016). The efficiency of banks in Indonesia: Sharia vs. conventional banks. Bulletin of Monetary Economics and Banking, 18(3), 307–332. https://doi.org/10.21098/bemp.v18i3.552
  4. Baholli, F., Dika, I., & Xhabija, G. (2015). Analysis of factors that influence non-performing financing with econometric model: Albanian case. Mediterranean Journal of Social Sciences, 5(1), 391–398. https://doi.org/10.5901/mjss.2015.v6n1p391
  5. Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking & Finance, 37(2), 433–447. https://doi.org/10.1016/J.JBANKFIN.2012.09.016
  6. Djamil, F. (2012). Penyelesaian pembiayaan bermasalah di bank syariah. Jakarta: Sinar Grafika.
  7. Espinoza, R., & Prasad, A. (2010). Nonperforming loans GCC banking system and their macroeconomics effects (IMF Working Paper No. 10/224). Retrieved from https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Nonperforming-Loans-in-the-GCC-Banking-System-and-their-Macroeconomic-Effects-24258
  8. Faiz, I. A. (2010). Ketahanan kredit perbankan syariah terhadap krisis keuangan global. La_Riba, 4(2), 217–237. https://doi.org/10.20885/lariba.vol4.iss2.art5
  9. Gujarati, D., & Porter, D. (2009). Basic Econometrics. New York, US: McGraw Hill Education.
  10. Mokhtar, M., & Zakaria, Z. (2009). Classification and management of non performing loan of Islamic banks and conventional banks: A comparative study. Jurnal Teknologi , 51(Dis), 31–56. https://doi.org/10.11113/jt.v51.156
  11. Norgren, C. (2010). The cause of the global financial crisis and their implication for supreme audit insitutions. Stockholm, Sweden. Retrieved from http://www.intosai.org/uploads/gaohq4709242v1finalsubgroup1paper.pdf
  12. Saba, I., Kouser, R., & Azeem, M. (2012). Determinant of non performing loans: Case of US banking sector. The Romanian Economic Journal, 15(44), 141–151. Retrieved from http://www.rejournal.eu/sites/rejournal.versatech.ro/files/articole/2014-06-27/2682/15-determinantsofnon-performingloanscaseofusbankingsector.pdf
  13. Soebagio, H. (2005). Analisis faktor–faktor yang mempengaruhi terjadinya non performing loan (NPL) pada bank umum komersial (Studi empiris pada sektor perbankan di Indonesia). Universitas Diponegoro. Retrieved from http://eprints.undip.ac.id/11650/