Determining Variables Of Financial Performance Between Conventional Rural Bank and Sharia Rural Bank and Different Variables in Financial Performance Between Both

Abstract

This study aims; (a) to analyze the effect of liquidity, rentability, capital and asset quality on the financial performanace of conventional and sharia BPR in East Java; and (b) to analyze the effects of liquidty, rentability, capital and asset quality to distingusih financial performanace of conventional and sharia BPR in East Java. Type of research includes explanatory research and comparative study through hypothesis test. Populations of the research are conventional and sharia BPR located in East Java. Cluster sampling is used to determine the representative sample. Total numbers of samples are 15 conventional BPR and 15 sharia BPR with same regency or city in East Java. This study uses secondary data in the form of financial ratios for 5 years, ferom 2014 t0 2018. The data analysis techniques used in this study are multiple regression and logistic regression. Theresearch found that (a) liquidity has ssignificant effect on financial performance of conventional BPR; (b) liquidity and asset quality have a significant effect on financial performance of sharia BPR; and (c) asset quality has a significant effect to distingusih financial performance between conventional BPR with sharia BPR.