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Comparaison de l'efficacité et l'efficience des Banques islamiques et conventionnels: cas de l'Indonésie
[Efficiency and effectiveness comparison of Islamic and conventional banking: case of Indonesia]

Author

Listed:
  • Jaouadi, Said
  • Ben Jazia, Rachida
  • Ziedi, Azza

Abstract

This study investigates the comparison between Islamic and conventional Indonesian banks and that by applying an approach called Efficiency - effectiveness in order to elucidate the determinants of performance of the Indonesian banking sector while placing identify factors that affect their profits. The history of conventional banks in Indonesia is very easy comparison with the Indonesian Islamic banks. The Islamic banking industry in Indonesia is in its infancy a slightly reduced number of banks active in this sector and achieves such a performance. This paper is based on monthly data of the banking sector in Indonesia dating from March 2010 to July 2011 collected on annual reports of the Indonesian central bank. A multiple regression is applied to judge the effectiveness and efficiency of conventional and Islamic banks in Indonesia. In making a connection between the results for conventional and Islamic banking sector, it turned out that they operate in manner linen to be effective and efficient, which leads us to value the contribution of economic and financial Islamic banking in terms of financial stability and sustainable development.

Suggested Citation

  • Jaouadi, Said & Ben Jazia, Rachida & Ziedi, Azza, 2011. "Comparaison de l'efficacité et l'efficience des Banques islamiques et conventionnels: cas de l'Indonésie [Efficiency and effectiveness comparison of Islamic and conventional banking: case of Indone," MPRA Paper 57551, University Library of Munich, Germany, revised 24 Jul 2014.
    • Handle: RePEc:pra:mprapa:57551
    as

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    References listed on IDEAS

    as
    1. Donsyah Yudistira, 2004. "Efficiency of Islamic Banks: an Empirical Analysis of 18 Banks," Finance 0406007, University Library of Munich, Germany.
    2. Said Jaouadi & Ilhem Zorgui, 2014. "Exploring Effectiveness and Efficiency of Banks in Switzerland," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(4), pages 313-325, April.
    3. Bashir, Abdel-Hameed M., 1999. "Risk And Profitability Measures In Islamic Banks: The Case Of Two Sudanese Banks," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 6, pages 1-24.
    4. Donsyah Yudistira, 2002. "The Impact of Bank Capital Requirements in Indonesia," Finance 0212002, University Library of Munich, Germany, revised 18 May 2003.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Islamic Finance; Conventional Finance; Efficiency – effectiveness approach; Multiple Regressions;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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