2017
DOI: 10.5220/0007077901180123
Keywords: Productivity Measurement, Islamic Bank’s, Conventional Bank’s.
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The purpose of this research is to analyze the productivity differences between Islamic bank’s and conventional banks in Indonesia during the period 2008 - 2016. In the first stage, bootstrapped Malmquist index of Islamic bank’s and five conventional banks operates in Indonesia during the period 2008-2016. In the second stage, the data panel models are used to Investigate the determinants of productivity change. The results of the first stage show both Islamic bank’s and conventional banks are experiencing decreasing productivity from 2008 to 2016. The results of the second stage show that Conventional banks are not influenced by specific banking factors compared to the Islamic bank. This paper provides relevant recommendations for improving the Islamic bank’s productivity in Indonesia. This research is aim to expanding the literature on the productivity measurement in Islamic banks to conventional banks. The productivity measurement analysis technique using Malmquist Index is still limited in Indonesian banking studies.