COMPARISON OF LIQUIDITY RISK AND CREDIT RISK STABILITY OF ISLAMIC BANKING AND CONVENTIONAL

This study analyzes the comparison of the stability of Islamic banks and conventional banks based on credit risk and liquidity risk. Researchers chose the bank stability variable with a proxy, namely the Z-score as a means of testing the effect of liquidity risk on bank stability. And using a descriptive statistical approach, the classical assumption test. To test the relationship between liquidity risk and credit risk, then the Mann-Whitney U test is to compare the performance of Islamic banks and conventional banks. The research data were obtained from Islamic and conventional banking companies in Indonesia for the period 2008-2018 to then compare and analyze the test results. The expected result is that there is a significant negative influence between liquidity risk on bank stability and the better performance of Islamic banks than conventional banks.Keywords: Liquidity Risk, Credit Risk, Stability Bank, Comparison of Sharia Banking and Conventiona