Title: Determinants of Indonesian Conventional An Islamic Bank Depositors Trust During the Covid-19
Authors:
1. Eko Fajar Cahyono
Lina Nugraha
Rani
3. M. Fariz Fadillah Mardianto
Department: Islamic Economics
Journal Name: Journal of Islamic Monetary Economics and
Finance Keywords: Trust Depositors, Depositors Funds, Macroeconomic Conditions, PLS-SEM
Abstract
Depositors Trust Plays An Essential Role in the Banking Sector. The main objective of this study is to test as a significantly affecting depositors' confidence in conventional and Islamic banks in Indonesia during the Covid-19 Pandemic. We conducted qualitative research with a sample of 217 customers who had a minimum of two bank accounts, one conventional, and one Islamic. In a questionnaire, customers were asked their opinions related to indicators of the variables studied, such as depositors trust, and their perceptions of inflation, conventional banks interest, the equivalent yield rate of Islamic banks, and industry perception productivity index. The results of the questionnaire were analysis using the partial less squares (PLS) Method. The pls analysis results show that the indicators related to conventional bank interest and the equivalent yield rate of Islamic banks significantly affected depositors' trust and hands. In other words, Customers are influenced when making banks Deposits by the factors related to conventional bank interest and the equivalent yield rate of Islamic banks. The external aspect of the industrial production index based on the pls test had a significant effect on depositors' trust in both types of bank. In contrast, the external factor of inflation is not significantly affecting depositors' trust in either conventional or Islamic banks. Therefor, based on the PLS-SEM results, Conclusions can be drawn regarding the factors influencing depositors trust.
For Details: https://doi.org/10.21098/jimf.v7i1.1352