<![CDATA[The distribution of productive loans and financing plays an important role in supporting economic growth through the development of real sector activities. This study aims to analyze the effect of financial performance on productive loans and financing and to examine differences in productive fund distribution between conventional and Islamic banks in Indonesia. This study employs a quantitative approach using secondary data from conventional and Islamic banks in Indonesia. Data were analyzed using multiple linear regression and the Mann–Whitney U Test. The results show that CAR has a positive and significant effect on productive loans/financing in both banking systems. In conventional banks, LDR also has a positive and significant effect, while ROA and NPL have negative and significant effects; BOPO has no significant effect. In Islamic banks, ROA, BOPO, NPF, and FDR have no significant effect. Furthermore, there is no significant difference in productive fund distribution between the two banking systems. These findings imply that strengthening capital adequacy is important to support productive fund distribution and enhance the effectiveness of the banking intermediation function.]]>
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