COMPARISON ANALYSIS OF CONVENTIONAL BANK CREDIT WITH SHARIA BANK FINANCING TO MSMEs DURING THE COVID-19 PANDEMIC

Abstract

Abstract – The purpose of this study is to analyze the differences in the provision of working capital and investment loans to MSMEs in conventional banks with working capital and investment financing to MSMEs in Islamic banks. The sampling technique used in this study was purposive sampling taken from MSME Financing/MSME Credit Working capital and MSME Financing/MSME Investment Credit contained in the Financial Services Authority Statistics for the period March 2020- December 2022. The analytical method used in this study was test non-parametric statistical differenceMann Whitney. The results of the study show that there is a significant difference in the provision of working capital and investment loans to MSMEs in conventional banks with working capital and investment financing for MSMEs in Islamic banks and working capital and investment financing of Islamic banks to MSMEs is not greater than working capital and bank investment loans. conventional for SMEs

 Keywords:  Islamic Banks, Conventional Banks, MSME Financing, MSME Credit, and Differences in Financing