BEST SHARIA BANK IN INDONESIA: AN ANALYTICAL HIERARCHY PROCESS (AHP) APPROACH

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Published May 19, 2021
M. Jihadi
Elok Vilantika
Fatmawati Sholichah
Zainal Arifin

Abstract

This study aims to determine the performance of Islamic commercial banks in Indonesia using the following assessment criteria: capital, asset quality, efficiency, liquidity, Sharia Conformity & Profitability (SCnP), and the Maqasid Index. The sample includes the five best Sharia banks in Indonesia. All the data are obtained based on the annual reports of each bank taken from the bank's websites in 2019. Data were analyzed using the Analytical Hierarchy Process (AHP) method. This tool helps make decisions from several alternative choices of sharia bank institutions. The results show that Bank Muamalat Indonesia, Bank Syariah Mandiri, and BRI Syariah are the three best performing Sharia banks in 2019.

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Keywords

Sharia bank performance, SCnP, Maqasid Index, Analytical Hierarchy Process

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