Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations


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This study aims to analyze the comparison of the resilience of Islamic and conventional banking in the Association of Southeast Asian Nations (ASEAN) during the COVID-19 pandemic. Comparison of banking resilience was proxied by the Capital Adequacy Ratio (CAR) and Loan-to-Deposit Ratio (LDR) factors, Return on Assets (ROA) and Non-Performing Loans (NPL) with the Multiple Discriminant Analysis test. In this case, the emphasis is placed on the patterns by which Islamic and conventional banking in ASEAN weathered the recent financial crisis during the COVID-19 pandemic. The explanatory and quantitative analysis also used a purposive sample strategy and SPSS to obtain and analyze data from 120-unit analyses of Islamic and conventional banks, respectively. From 2020 to 2021, traditional banks in the ASEAN region, especially in Indonesia, Malaysia, and Brunei Darussalam, were emphasized. Moreover, some data were prioritized regarding the Comparison of Resilience of Sharia and Conventional Banking in ASEAN after the COVID-19 pandemic. The results showed that conventional and Islamic banks had different resilience due to the influence of Capital Adequacy Ratio (CAR) and Loan-to-Deposit Ratio (LDR) factors, but there was no significant difference in the Return on Assets (ROA) and Non-Performing Loans (NPL). Based on the accuracy of the average prediction of 80%, conventional and Islamic bank groups had classification values of 48% and 88%, respectively. This indicated that Islamic financial institutions were more successful than conventional groups in implementing banking resilience.

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    • Table 1. Comparison of CAR
    • Table 2. Comparison of ROA
    • Table 3. Comparison of LDR
    • Table 4. Comparison of NPL
    • Table 5. Kolmogorov-Smirnov one-sample normality test results
    • Table 6. Homogeneity test
    • Table 7. Pooled within groups matrices
    • Table 8. Test result analysis case processing summary
    • Table 9. Equality of group means
    • Table 10. Eigenvalues
    • Table 11. Wilks’ lambda
    • Table 12. Canonical discriminant function
    • Table 13. Classification result
    • Conceptualization
    • Formal Analysis
    • Investigation
    • Methodology
    • Supervision
    • Validation
    • Writing – original draft
    • Data curation
      Arif Sugiono, Havid Dasuki
    • Project administration
      Arif Sugiono, Havid Dasuki
    • Resources
      Arif Sugiono
    • Visualization
      Arif Sugiono
    • Writing – review & editing
      Arif Sugiono, Havid Dasuki
    • Funding acquisition
      Havid Dasuki
    • Software
      Havid Dasuki