Performance and Strategic Steps of Sharia Banking Development in Indonesia

Abstract

This paper aims to explain the performance of Islamic banking in Indonesia. It is also compared with the performance of conventional banking. Comparison with conventional banking is a necessity as a reflection of the efforts has been the extent to which the performance of Islamic banking now, to be a positive incentive for Islamic banking. In this paper, the performance of Islamic banking is restricted to the purely financial performance shown by the value of financial ratios of Islamic banking and conventional banking, which includes the performance of intermediation, asset management performance, the performance efficiency, profitability, and capital performance. In addition, this paper also discusses strategic step in the development of Islamic banking in Indonesia.