Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic

This study was conducted to measure and compare the productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic. The number of samples used in this study was 105 banks consisting of 95 conventional banks and 10 Islamic banks. The level of productivi...

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Main Authors: Fajra Octrina, Almi Jamilah
Format: Article
Language:English
Published: Universitas Muhammadiyah Yogyakarta 2024-02-01
Series:International Journal of Islamic Economics and Finance
Subjects:
Online Access:https://journal.umy.ac.id/index.php/ijief/article/view/16323
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author Fajra Octrina
Almi Jamilah
author_facet Fajra Octrina
Almi Jamilah
author_sort Fajra Octrina
collection DOAJ
description This study was conducted to measure and compare the productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic. The number of samples used in this study was 105 banks consisting of 95 conventional banks and 10 Islamic banks. The level of productivity was measured using the Malmquist Productivity Index (MPI) method and Data Envelopment Analysis (DEA) with an intermediation approach, while the productivity of conventional and Islamic commercial banks was compared using normality and different tests. The results showed that the productivity level of the Islamic banks with a Total Factor Productivity Changes (TFPCH) value of 1.001 was driven by technological advances. Meanwhile, the conventional banks were not productive. On the other hand, the results of the different tests showed that there was no significant difference between the productivity level of the conventional and Islamic banks. Conventional banks must enhance innovations in the use of technology in their operational activities to improve their productivity and maintain their high efficiency achievement. Meanwhile, Islamic banks could improve their efficiency in the operational activities so that they would achieve higher productivity and to innovate continually with the use of technology. During the study observation, there was no study comparing between the productivity level of conventional and Islamic commercial banks during the COVID-19 pandemic in Indonesia. Therefore, this research was the first study to discuss the comparison of productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic.
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spelling doaj-art-83130786336d42a1ab252dbd7bdddb082025-08-20T01:58:36ZengUniversitas Muhammadiyah YogyakartaInternational Journal of Islamic Economics and Finance2622-35622622-43722024-02-017112610.18196/ijief.v7i1.163237242Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 PandemicFajra Octrina0Almi Jamilah1Telkom UniversityTelkom UniversityThis study was conducted to measure and compare the productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic. The number of samples used in this study was 105 banks consisting of 95 conventional banks and 10 Islamic banks. The level of productivity was measured using the Malmquist Productivity Index (MPI) method and Data Envelopment Analysis (DEA) with an intermediation approach, while the productivity of conventional and Islamic commercial banks was compared using normality and different tests. The results showed that the productivity level of the Islamic banks with a Total Factor Productivity Changes (TFPCH) value of 1.001 was driven by technological advances. Meanwhile, the conventional banks were not productive. On the other hand, the results of the different tests showed that there was no significant difference between the productivity level of the conventional and Islamic banks. Conventional banks must enhance innovations in the use of technology in their operational activities to improve their productivity and maintain their high efficiency achievement. Meanwhile, Islamic banks could improve their efficiency in the operational activities so that they would achieve higher productivity and to innovate continually with the use of technology. During the study observation, there was no study comparing between the productivity level of conventional and Islamic commercial banks during the COVID-19 pandemic in Indonesia. Therefore, this research was the first study to discuss the comparison of productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic.https://journal.umy.ac.id/index.php/ijief/article/view/16323performanceproductivitymalmquist productivity indexconventional banksislamic banks.
spellingShingle Fajra Octrina
Almi Jamilah
Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
International Journal of Islamic Economics and Finance
performance
productivity
malmquist productivity index
conventional banks
islamic banks.
title Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
title_full Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
title_fullStr Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
title_full_unstemmed Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
title_short Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic
title_sort productivity comparison between conventional and islamic commercial banks in indonesia during the covid 19 pandemic
topic performance
productivity
malmquist productivity index
conventional banks
islamic banks.
url https://journal.umy.ac.id/index.php/ijief/article/view/16323
work_keys_str_mv AT fajraoctrina productivitycomparisonbetweenconventionalandislamiccommercialbanksinindonesiaduringthecovid19pandemic
AT almijamilah productivitycomparisonbetweenconventionalandislamiccommercialbanksinindonesiaduringthecovid19pandemic