The impact of liquidity to the Bank's overall performance : comparative study of Bank Muamalat Indonesia and Bank Mandiri | |
| Author | Ruchyama, Rama |
| Call Number | AIT RSPR no.SM-05-91 |
| Subject(s) | Bank Muamalat Indonesia Bank Mandiri Bank liquidity--Indonesia |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-05-91 |
| Abstract | During and after the financial cns1s, the growth of Islamic banking in Indonesia is being considered to be important. Unlike many other banks which operates within conventional framework, shari'a banking was not heavily affected in crisis situation. Islamic banks in where its business nature performs based on profitloss sharing (PLS) are automatically play significant role on the development of economic. Due to their business nature that rely most on the PLS distributed mostly to Small Medium Enterprises (SMEs) which have been proved to be more sustainable relative to corporate lending, its role to foster real sector investments is expected seriously. Many potential SMEs with fragile financial supports have been experienced rejection by conventional banks because of lack in collateral and reduce its intermediation role during after crisis. Many banks rely most on recapitalization bond rather than spur its loan performance. Thus, this different business pre-requisite put advantages on shari'a banks to contribute more in the real sector economy. This research study is aimed to find the level of liquidity position of Bank Muamalat Indonesia (Islamic) relative to Bank Mandiri (conventional), their overall performance measures, and tries to find the correlation and rationale behind. The study will cover comparison study with other countries implementing shari'a principles in their operations, includes: Islamic banking practices in Malaysia, Bahrain and other countries as literature references as well as benchmark for Indonesian banking industry. Central Bank as a sole banking supervisory has been intended to develop its shari'a banking operations considering its huge potential floating market and for Islamic banking to operate in synergy with conventional banks in which already established and more developed. Understanding the nature of its challenges faced by shari'a banks is essential to positioning and mastering itself in the area that beneficial for Islamic bank. The research study will involve the biggest shari'a bank in Indonesia (Bank Muamalat Indonesia) as well as benchmark from conventional bank, represented by Bank Mandiri as a market leader. |
| Year | 2005 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-05-91 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sundar |
| Examination Committee(s) | Singha Chiamsiri; Kouwenberg, Roy |
| Scholarship Donor(s) | AIT Fellowship |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2005 |