MATEC Web Conf.
Volume 218, 2018The 1st International Conference on Industrial, Electrical and Electronics (ICIEE 2018)
|Number of page(s)||6|
|Section||Industrial And Engineering Applications|
|Published online||26 October 2018|
Assessing bank performance measurement in islamic banking industry
Applied Master of Islamic Banking and Finance, Politeknik Negeri Bandung, Indonesia
Corresponding author: firstname.lastname@example.org
The Indonesian Islamic banking industry, attaining the age of more than 25 years tend to adopt conventional approach to measure its bank performance. Although this method could well inform the performance of the bank financial, this measurement fails to inform both the characteristics of Islamic banking. This study is designed to evaluate three Islamic bank performance measurements: Sharia Maqashid Index, Sharia Conformity and Profitability (SCnP), and CAMELS. Sharia Maqashid Index approach has three variables: educating individual, establishing justice, and public interest. SCnP approach has two variables: Sharia conformity and profitability. While CAMELS approach has five variables: Capital, Asset Quality, Management, Earning, and Liquidity. This study uses data from Islamic Commercial Banks registered on Bank Indonesia from 2012-2016. The data analytical technique is quantitative method using descriptive approach. The results of the study using Sharia Maqashid Index reveal that there is a difference in Islamic Commercial Banks performance. The used of SCnP reveals that none of Islamic Commercial Banks on upper right quadrant. The used of CAMELS reveals that all of Islamic Commercial Banks in Indonesia have Fairly Healthy predicate. These findings suggest that, to provide a comprehensive picture of its performance, the Islamic banks need to adopt both Sharia-based as well as financial based measurement.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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