INDONESIA - ARTICLES - Banking: According to Islamic Sharia Concepts and Its Performance in Indonesia

 Banking: According to Islamic Sharia Concepts and Its Performance in Indonesia
Hariandy Hasbi and Tendi Haruman

International Review of Business Research Papers
Vol. 7. No. 1. January 2011. Pp. 60 - 76

This study investigates empirically Islamic Sharia Banking concepts and to determine the performance of its based on Bank Indonesia Act No.9/1/PBI/2007 on assesment system for performance level to Commercial Banks based on Islamic Principles which consists of the aspects: capital, assets, management, earning, and likuidity which called CAMEL. The all of aspects use financial ratios as follow CAR, ROA, NPF, OEOI, FDR and Depositor Funds as a comparison as a reflect level of public trust on Islamic banking. Samples were taken from Bank Indonesia as a central bank period of 2007-2009 with 31 sample of Islamic Bank (BUS, UUS, BPRS) which was chosen based on a purposive sampling method. Using descriptive method and multiple regression analysis, the results of this study indicate that the Islamic banking have a good performance reflected CAMEL on Depositor Funds. (source)