Perpustakaan Digital ITB

Nowadays, business competition between banks is getting keener and keener, and each bank creates various products and business systems which present multiple competitive advantages. The increasing demand for financing institution has encouraged banks to offer financing facility to the public. One of those facflities, which is the most popular one, is house financing credit that answers the high public demand for house. In this situation, public (conventional) bank will face new competition with the presence of finance institutions or non-conventional banks. This phenomenon is marked by the growth of finance institution which adopts the sharia system. The difference between the management system of sharia bank and conventional bank lies on the recompense which is received by both the bank and the investor. The banking procedure itself is not too different; it is the agreement that is not the same. Conventional bank adopts credit agreement, while sharia bank adopts trade agreement. The agreement of marginal profit is decided at the beginning, in accordance with the principle of Islam. In order to be able to make comparison, the components of expense are detailed and added one by one to find out about the amount of installment from both of bank. Then the amount of the installment is compared using financial method. In conventional bank the method employed is called scenario analysis which comprises of best case, base case, and worst case, which later the IRR and NPV will be compared to calculate the profitability, present value and the equivalent point for the consumers between their money that they'll got as a loan and money they'll spent as installment during the time period of the credit. The condition is provided in scenario analysis. Which in base analysis the interest rate is assume stable. If it's change, the average of the changing will be around point 12,5% (the current KPR condition), For the best case as a optimistic scenario that the interest will be decrease until reach the minimum point from historical data. For the worst case as the pessimistic scenario that the interest rate will increase and touch highest level from historical data. Although the condition has been set as pessimistic as possible, sharia bank still has the highest IRR; which means, with the high marginal rate taken, sharia bank will be less competitive compared to conventional bank Customer are recommended to used KPR conventional system especially BI predict that Indonesia economic will be stable and inflation rate will decrease which means funding using sharia will not give an equal value with the amount customer's pay later as installment. Due to this reason, a directed socialization from sharia bank is crucial, that public will understand the objective of giving higher margin than BI's interest rate and knows about the system..