PONE-D-23-38458Comparative Stability Analysis of Indonesian Banks: Markov Switching - Dynamic Regression in Islamic and Conventional SectorsPLOS ONE

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Reviewer #1: Yes

Reviewer #2: Yes

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2. Has the statistical analysis been performed appropriately and rigorously?

Reviewer #1: Yes

Reviewer #2: Yes

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Reviewer #1: Yes

Reviewer #2: Yes

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Reviewer #1: Yes

Reviewer #2: Yes

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5. Review Comments to the Author

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Reviewer #1: The article focuses on identifying the factors influencing the stability and crisis impact of Islamic Commercial Banks (ICB) and Islamic Rural Banks (IRB), and compares the stability of the Islamic banking industry and the traditional banking industry in Indonesia under different economic systems (crisis and stability). This is important for understanding the dynamics that affect the stability of the Islamic and traditional banking industries in the Indonesian context.

The main focus of the article is on the systemic risk of Islamic Commercial Banks (ICB) and Islamic Rural Banks (IRB) in the Indonesian context, which has a unique cultural background. However, in the fourth section "4. Results and Analysis," why is it necessary to study the impact of the Financing to Deposit Ratio (FDR) on the Industrial and Commercial Bank of China and the China Construction Bank? The banking systems of China and Indonesia are products of different economic systems, so what is the significance of this part of the research? Please provide a detailed explanation and clarification.

Reviewer #2: This is a very interesting paper describing comparative stability analysis of Indonesian Banks, using the Markov Switching -Dynamic Regression. But there are some queestions needed to revise to smooth the paper. First, the logic and format of the paper is not good, and some paragraph is repetitive. So, the author need to reorganize the paragraph and read carefully to make the logic clear and form a story, such as the table should be three-wire meter. Because the paragraph is now dissected. Second, many tables showed in the paper with different categories, so the the author should unify to one table, such as table 1 and table 2 can be merge into one table, and the decimal places oof the table should be united, which is about three decimal palces. Third, the author should make the Zt explaination of the equation 1, which is not existed in page 12.

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Reviewer #1: No

Reviewer #2: No

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Comparative Stability Analysis of Indonesian Banks: Markov Switching - Dynamic Regression in Islamic and Conventional Sectors

PONE-D-23-38458R1

Dear Dr. Anidah Robani,

We’re pleased to inform you that your manuscript has been judged scientifically suitable for publication and will be formally accepted for publication once it meets all outstanding technical requirements.

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Kind regards,

Ricky Chee Jiun Chia

Academic Editor

PLOS ONE

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