Abstract:
The objective of this study was to compare financial performance between Islamic and state Owned conventional banking during period 2006 – 2013 registered in Bank of Indonesia. The study analyzed four banks which were PT Bank Syariah Mandiri, PT Bank Muamalat Indonesia, PT Bank Tabungan Negara and PT Bank Negara Indonesia. The parameters used to compare their financial performance were several financial ratios that include Capital Adequacy Ratio (CAR) as capital adequacy assessment; Return on Assets (ROA), Return on Equity (ROE) and Operational Efficiency Ratio (OER) as profitability assessment; and Loan-to-Deposit Ratio (LDR) as liquidity assessment. The method used is Independent t-test where this study is to compare samples from two different populations. This study used secondary data that was collected and obtained from financial publication report quarterly published by representative banks through the banks’ official sites and official site of Bank of Indonesia starting from March 2006 to September 2013. The result showed that CAR, ROE and LDR significantly differed between Islamic and state Owned conventional banks whilst ROA and OER were two variables that showed Islamic and state Owned conventional banks were not significantly different.
