International Conference on Eurasian Economies
4-5 November 2010 – Istanbul, TURKEY
Paper detail
Paper ID : 171
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Mrs. Diana Yumanita
Session : 4A Finance
The Determinants of Net Interest Margin in Conventional and Islamic Banks in Indonesia
The Determinants of Net Interest Margin in Conventional and Islamic Banks in Indonesia
- Mr. Ascarya Ascarya (Central Bank of Indonasia, Indonesia)
- Mrs. Diana Yumanita (Central Bank of Indonasia, Indonesia)
Abstract
Indonesia has adopted dual banking system since 1998, when conventional bank operate side by side with Islamic bank. One measure of bank’s performance as intermediary institution to stimulate economic growth is net interest margin (NIM) in conventional bank or net profit-and-loss sharing/PLS margin (NPM) in Islamic bank. This study analyses the determinants of NIM and NPM in Indonesia using multivariate analysis and dynamic panel data to see the persistence of large NIM and NPM in the recent past, although policy rate has been decreasing significantly.
JEL codes: E52, G18, G28
Ascarya, Ascarya, Yumanita, Diana (2010). "The Determinants of Net Interest Margin in Conventional and Islamic Banks in Indonesia" in Proceedings of International Conference of Eurasian Economies 2010, pp.252-257, Istanbul, TURKEY.
DOI: https://doi.org/10.36880/C01.00171
