ABSTRACT
Commercial banks comprise conventional commercial banks (CCB) and Islamic commercial banks (ICB). They use different principles; ICB uses Islamic principles, while CCB uses conventional principles. Therefore, there are also differences in how they earn profits and the internal and external factors that influence it. This research employs the error correction model and difference test. The samples of CCB and ICB were recorded in the 2013–2019 Indonesian Banking Survey and the Islamic Banking Survey. The research results reveal that CCB did not make provisions, so that profits remained high, but it had an impact on financing expenses from non-performing loan (NPL) for the next year. Meanwhile, ICB made backups, and so the profit earned reduced, but it had a lighter financing expenses from non-performing financing (NPF), so that the continuity/sustainability of ICB was better maintained.
