Performance of Islamic Banks Using the Islamicity Performance Index Approach on Islamic Banks in Indonesia and Malaysia

Abstract

This research aims to analyze and compare the performance of Islamic banks with the Islamicity Performance Index approach on Islamic banks in Indonesia and Malaysia. This type of research is a descriptive quantitative research. The sampling technique used is purposive sampling. The research was conducted on Islamic banks in Indonesia and Malaysia for 4 years, 2017-2020. This comparative research is expected to be an evaluation material for Indonesian Islamic banks to continue to improve their performance in order to catch up with Islamic banks in Malaysia. So the purpose of this research proposal is to analyze and compare the effect of the soundness of Islamic banks based on the Islamicity Performance Index on Islamic banks in Indonesia and Malaysia. The results of this study indicate that there are significant differences in the performance of Islamic banks based on the Equitable Distribution Ratio-Qardh in Islamic banks in Indonesia and Malaysia, while the performance of Islamic banks based on the Profit Sharing Ratio, Zakat Performing Ratio and Halal vs. Non-Halal Income Ratio, there is no significant differences in Islamic banks in Indonesia and Malaysia.