THE FINANCIAL HEALTH AND SOCIAL PERFORMANCE (Case Study: Comparison between Conventional and Islamic Banking in Indonesia)

Abstract

            Islamic banking is a financial institutions carry out its business activities in line with the basic principles of Islamic economy. Islamic economic goals for Islamic banks are not only focused on commercial purposes but also consider its role in providing welfare broadly to society. The emergence of Islamic banks seems the more affirming that the conventional bank does not have a social role. In fact, the bank is generally held to be managing the funds of the society. Certainly, the society also expected reciprocities form banks. Therefore the measurement needs to be done to compare Islamic banks and conventional banks. This research aims to quantify and compare the financial health and social performance of conventional banks and Islamic banks by using the ratio of the elements provided financial reports and data provided by Bank Indonesia.