Islamic Banks and Conventional Banks in Indonesia, who is more resilient towards the pandemic crisis?

This paper presents a comparative analysis of Islamic banks and conventional banks in Indonesia using monthly data retrieved from OJK from January 2015 to May 2024. The method used is Mann-Whitney for non-parametric analysis to compare two groups whether they are different or indifferent. This is because the data does not fulfill the assumptions of normality and homogeneity, even though graphically it does. Return on Assets is used as a measurement parameter of the banking performance of both Islamic and Conventional banks. The data was then tested to see the resilience of their performance during the Pandemic crisis using dummy analysis. The results show that in general, Conventional Banks have better performance compared to Islamic Banks. However, separately analyzed, Islamic Banks performed better during the COVID-19 pandemic, while the performance of Conventional Banks worsened due to the presence of the pandemic crisis. This study gives insightful information about the banking picture in Indonesia. Thus it can be used as a reference for the government to take appropriate policies to enhance the development of both Islamic and conventional banks.