| dc.description.abstract | The existence of sharia banking in Indonesia in the last few years has
rapidly developed and accepted by the people. It can be seen from the increase in
its assets each year. However, this increase is not able to compete with the
conventional banks in increasing its market segment of national banking. One of
the reasons is that, as a new comer, it lacks of the competitiveness, compared with
the conventional banking. The objective of the research was to find out and to
analyze how big the difference in financial competitiveness between sharia banks
and conventional ones. Independent variables were 26 financial ratios, consisted
of Return on Asset (ROA), Return on Equity (ROE), Profit Margin (PM), Return
on Deposits (ROD), Return on Shareholder Capital (ROSC), Net Operating
Margin (NOM), Interest income to expenses ratio (IEE), Operating expense to
assets ratio (OEA), Operating income to assets ratio (OJA), Operating expense to
revenue ratio (OER), Asset turnover ratio (ATO), Net interest margin ratio
(NIM), Net non-interest margin ratio (NNJM), Provision to earning assets ratio
(PEA), Adequacy of Provision for Loans (APL), Write-off loans ratio (WRL),.
Loan to assets ratio (LTA), Loan to deposits ratio (LTD), Cash to assets ratio
(CTA), Cash to deposits ratio (CTD), Deposits to assets ratio (DTA), Equity
multiplier ratio (EM), Equity to Deposits ratio (ETD), Total Liabilities to Equity
ratio (['LE), Total Liabilities to Shareholder's Capital ratio (I'LSC), and Retained
Earnings to Total Assets ratio (RETA). The samples were 11 sharia banks and 57
conventional banks. The data were analyzed by using independent sample t-test to
find out whether there was mean difference between the independent samples.
The result of the research showed that . there was significant difference in
competitiveness between sharia banks and convetional ones which was measured
by using ROSC, NIM, NNIM, APL, LTA, CTD, EM, TLE, and TLSC at the
significance value < a (0.05). Sharia banks in Indonesia have better financial
competitiveness than that of conventional banks, based on NIM ratio, LTA ratio,
and TLSC ratio, while conventional banks are more superior in ROSC ratio,
NNIM ratio, APL ratio, CTD ratio, EM ratio, and TLE ratio. | en_US |
