scholarly journals The Awareness and Attitude towards Islamic Banking: A Study in Malaysia

2015 ◽  
Vol 2 (3) ◽  
pp. 172 ◽  
Author(s):  
Buerhan Saiti
Keyword(s):  
Mass Media ◽  
Selection Criteria ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Counseling ◽  
Significant Difference ◽  
Klang Valley ◽  
Banking Operations

The purpose of this study is to establish the level of awareness that Malaysians have in relation to the culture of Islamic banking, the attitude of Malaysians towards Islamic banking and a ranking of the bank selection criteria of Malaysians – and for each part of the study, to see if Muslim responses are different from non-Muslim responses. A sample of 150 Muslim and non-Muslim customers in Klang Valley was surveyed utilizing a questionnaire containing specific questions relating to the awareness and attitudes of Islamic banking to their ranking of the services required. It is found that the Muslims are more aware toward the culture of Islamic banking, and as consequences, be more aware of the meaning of fundamental terms used in Islamic banking and finance.In the case of the attitudes towards Islamic banks, there were many differences in attitudes between Muslims and non-Muslims in country with majority of Muslims. In the context of bank selection criteria, there are four significant differences among Muslims and non-Muslims such as, mass media advertising, credit on favorable terms, financial counseling and location near my place of work, while the others 18 criteria shows no significant difference. The findings can be utilize by banks to measure the level of attitudes and acceptance towards Islamic Banking among Muslims and non-Muslim and for those who is considering setting up an Islamic banking operations in the country with majority of Muslims.

The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

scholarly journals Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

2016 ◽  
Vol 8 (11) ◽  
pp. 193 ◽  
Author(s):  
Arfianti Novita Anwar
Keyword(s):  
Secondary Data ◽  
Rank Test ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
The Law ◽  
Conventional Banks

<p>This study aims to analyze the performance of Islamic banks and conventional banks before and after the implementation of Islamic Banking Act 2008. The performance will be measured using CAMEL ratio selected. This research is considered essential in examining the positive contribution of the application of the Act to improve the performance of Islamic banks in Indonesia. By using secondary data, this study compared the performance of Islamic banks with that conventional bank selected as samples during the study period. Data were analyzed using the Wilcoxon Signed Rank Test for inter-temporal and Mann-Whitney test for inter-bank. Inter-temporal Tests conducted on Islamic Banking showed that a significant difference was only seen in the NPF ratio of 2 years before and after implementation of Islamic Banking Act. As for conventional banks showed a more diverse ie for 1 year before and after the application of the Law on Islamic Banking there are significant differences for the ROA and ROE, two years before and after implementation of the Law Islamic banking there are significant differences for the CAR, ROA, ROE and NIM and for the overall test a significant difference to CAR, ROA, ROE, NIM and efficiency. Inter-bank testing showed that prior to the application of Islamic Banking Act there are significant differences between conventional banks and Islamic banks to CAR, ROA and efficiency. Furthermore, after the application of Islamic Banking Act there is a significant difference for the CAR and LDR / FDR.</p>

Identifying the gaps between customer expectations and perceptions on service quality dimensions of Islamic banks in Malaysia

2015 ◽  
Vol 7 (4) ◽  
pp. 424-441 ◽  
Author(s):  
Rafikul Islam ◽  
Selim Ahmed ◽  
Dzuljastri Abdul Razak
Keyword(s):  
Service Quality ◽  
Age Groups ◽  
Educational Background ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Customer Expectations ◽  
Banking Service ◽  
Significant Difference

Purpose – This paper aims to identify the gaps and differences between customer expectations and perceptions on service quality of Islamic banks in Malaysia based on six dimensions of service quality, namely, reliability, responsiveness, assurance, empathy, tangibles and Islamic Shari’ah compliance. Design/methodology/approach – This study surveyed 179 customers who have first-hand experience with Islamic banking services in Malaysia. The research data were analysed using reliability analysis, independent samples t-test and one-way analysis of variance. Findings – The results indicated that customers’ perceptions failed to meet their expectations on the service quality of Islamic banks in Malaysia. The results also indicated that those customers (respondents) aged below 30 years have higher expectations on empathy from the Islamic banking service compared to other age groups. However, there is no significant difference between customer expectations and perceptions of Islamic banking service quality based on educational background and occupation. Research limitations/implications – This research focused solely on Islamic banks in Malaysia and thus the results might not be applicable for other conventional banks. Originality/value – The findings are expected to provide guidelines for enhancing the satisfaction level of clients of the Islamic banking system in Malaysia and other countries.

scholarly journals Pricing Linkage between Islamic Banking and Conventional Banking: The Case of Bangladesh

2016 ◽  
Vol 3 (4) ◽  
pp. 84
Author(s):  
Sarwar Uddin Ahmed ◽  
Ashikur Rahman ◽  
Samuel Parvez Ahmed ◽  
G M Wali Ullah
Keyword(s):  
Profit Sharing ◽  
Islamic Banking ◽  
Specific Rate ◽  
Islamic Banks ◽  
Loss Mechanism ◽  
Monthly Data ◽  
For Profit ◽  
Significant Difference ◽  
Conventional Banks ◽  
The Relationship

<p><em>Islamic banking is based on profit and loss mechanism where the use of interest is prohibited.  Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing.  However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits.  On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship was inconclusive, and requires further analysis.</em></p>

scholarly journals 'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

2021 ◽  
Vol 18 (2) ◽  
pp. 173-189
Author(s):  
Sharifah Faigah Syed Alwi ◽  
◽  
Fateha Abd Halim ◽  
Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin ◽  
Aizurra Haidah Abdul Kadir ◽  
...  
Keyword(s):  
Qualitative Methodology ◽  
Islamic Law ◽  
Human Life ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Structured Interviews ◽  
The Public ◽  
Library Research ◽  
Banking Institutions ◽  
Banking Operations

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.

scholarly journals The principle of maṣlaḥah and its application in Islamic banking operations in Malaysia

2019 ◽  
Vol 11 (1) ◽  
pp. 137-146 ◽  
Author(s):  
Muhammad Shahrul Ifwat Ishak
Keyword(s):  
Legal Aspect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Content Analysis Method ◽  
Inductive Methods ◽  
Financial Transactions ◽  
Practical Implications ◽  
Banking Operations

Purpose This paper aims to investigate the extent to which maṣlaḥah (public interest) is taken into consideration in Islamic banking operations in Malaysia, particularly in bayʿ al-ʿīnah (sale and buyback), taʿwiḍ (compensation) and ibrāʾ (rebate). Design/methodology/approach This study applies deductive and inductive methods to analyze the application of maṣlaḥah in Islamic financial transactions. Three issues in Malaysia are selected as a case study, allowing bayʿ al-ʿīnah, standardizing the rate of taʿwiḍ and stipulating the ibrāʾ clause in financial agreements. As this study is qualitative in nature, all data are analyzed based on the content analysis method. Findings Both the maṣlaḥah of Islamic banks and their customers were found to be considered by the Central Bank of Malaysia in the implementation of contracts and principles of Islamic banking. The first maṣlaḥah represents the viability of Islamic banks, while the second maṣlaḥah promotes fairness and transparency between Islamic banks and their customers. Research limitations/implications This study only focuses on the contracts and principles of Islamic banking operations in Malaysia with regard to three selected issues. Practical implications This paper clarifies the practical application of maṣlaḥah in the Islamic banking industry, particularly with regard to implementing its contracts and principles. Originality/value This paper analyzes the argument of maṣlaḥah on the issues of bayʿ al-ʿīnah , taʿwiḍ and ibrāʾ in Malaysia, which are considered among scholars to be debatable issues. While many discussions focus on the legal aspect of Sharīʿah on those issues, this study emphasizes how the application of maṣlaḥah aims to solve the current problems and harmonize between Sharīʿah and reality.

scholarly journals COMPARISON OF ISLAMIC BANK PERFORMANCE AND CONVENTIONAL BANK PERFORMANCE IN PROVINCE WITH MUSLIM MAJORITY AND PROVINCE WITH NONMUSLIM MAJORITY POPULATION IN INDONESIA

2020 ◽  
Vol 1 (2) ◽  
pp. 76
Author(s):  
Eko Fajar Cahyono ◽  
M Fariz Fadillah Mardianto ◽  
Tika Widiastuti
Keyword(s):  
Commercial Banking ◽  
Third Party ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Majority Population ◽  
Significant Difference ◽  
Muslim Majority ◽  
Conventional Banks ◽  
Party Funding

This study aims to examine the universality of Islamic banking services and products and conventional banks in Indonesia to test whether all circles both Muslims and non-Muslims can accept the services and products of Islamic banks and conventional banks. The method used using MANOVA ( Multivariate Analysis of Variance )  test by comparing the performance of Islamic banks and conventional banks represented by several indicators like third party fund and financing or lending in some provinces in Indonesia. There are two categories of provinces, namely the first category is the province of the province with the majority Muslim population and the second is the provincial category of provinces with non-Muslim majority population in Indonesia. There is no significant difference in the performance of third-party funding of Conventional Commercial and Islamic Banking in Provinces with Majority of Moslems and Non-Muslim Majority  Provinces. There is no significant difference in the performance of credit distribution of Conventional Commercial Banking and Islamic Comercial Banking in Provinces with Majority of Moslems and Non-Muslim Majority Provinces.

scholarly journals COMPARATIVE ANALYSIS OF THE EFFICIENCY OF ISLAMIC BANKING IN INDONESIA BEFORE AND DURING COVID-19 PANDEMIC

2021 ◽  
Vol 3 (9) ◽  
pp. 277-287
Author(s):  
Safira Khoirunnisa ◽  
Arson Aliludin
Keyword(s):  
Business Performance ◽  
Banking Industry ◽  
Efficiency Score ◽  
Third Party ◽  
Scale Model ◽  
Islamic Banking ◽  
Past Century ◽  
Islamic Banks ◽  
Operating Income ◽  
Significant Difference

In 2019, COVID-19 starts to become a global emergence and keeps spreading all over the world. It has begun to enter Indonesia in February 2020 and has developed the social restriction and lockdown policy that leads to the decline in the economy. In contrast, the Islamic banking industry has escalated marginally in the past century. As a business entity, Islamic Banking has to maintain its business performance, one of which is by measuring the efficiency of the bank. The aim of this study is to analyse whether the Islamic Banking industry is disrupted by the occurrence of the COVID-19 pandemic, by measuring the efficiency of Islamic Banking. This study uses the Data Envelopment Analysis method with Variable Return to Scale model in output orientation. The variables used are based on the Intermediation approach which are Third Party Funds with Total Assets for the input, and Financing with Operating Income for the output. The samples are from all of the Islamic Banks in Indonesia in 2019-2021 except PT Bank Net Indonesia Syariah (total of 13). After calculating the efficiency, to see whether there is a difference between the Islamic Banks' efficiency before and during the COVID-19 pandemic, the Kolmogorov-Smirnov and Mann-Whitney U Test are used. The result of this study is that the Islamic banks in Indonesia have not been efficient both before and during the COVID-19 Pandemic, with a score of 68,12% for before and 69,64% for during pandemic. Moreover, the correlation analysis using the Mann-Whitney U test result indicates that the efficiency score before and during the COVID-19 pandemic has no significant difference. Hence, this illustrates that the occurrence of the COVID-19 pandemic didn’t affect the Islamic Banking industry in Indonesia, particularly on their efficiency.

scholarly journals ANALISIS PENGETAHUAN DAN KRITERIA PEMILIHAN BANK SYARIAH

2019 ◽  
Vol 4 (2) ◽  
pp. 159
Author(s):  
ANNA SARDIANA
Keyword(s):  
Selection Criteria ◽  
Consumer Attitudes ◽  
Influential Factor ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Research Subjects ◽  
Location Factors ◽  
Student Knowledge ◽  
Consumer Decisions ◽  
Data Analysis Methods

This study aims to analyze the selection criteria considered by students in choosing a Sharia bank; know the level of student knowledge of Islamic banking products; and analyzing consumer attitudes towards Islamic banks. The research subjects were students who used the services of Islamic banks or those who did not use Islamic banks in Jakarta. Data analysis methods are statistical descriptive and factor analysis. The analysis concluded that there were six factors that were considered by students in choosing a Sharia bank, including: perception and process, physical condition, price, human resources, relationships and location factors. Consumer perception is the most influential factor on consumer decisions in choosing a Sharia bank. In general, the majority of respondents have limited knowledge about Islamic banking. Religion is not the main reason for students to choose a Sharia bank. Students consider Sharia bank service friendliness more than other factors

scholarly journals Analisis Komparasi Kinerja Keuangan Perbankan Syariah di Indonesia dan Malaysia Menggunakan Pendekatan Maqashid Shariai Index

2021 ◽  
Vol 1 (3) ◽  
pp. 688-700
Author(s):  
Tiara Tresnawulan Barkah ◽  
Dimas Sumitra Danisworo ◽  
Muhamad Umar Mai
Keyword(s):  
Financial Performance ◽  
T Test ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Average Value ◽  
The Third ◽  
A Value ◽  
Independent Analysis ◽  
Significant Difference

This research was conducted to analyze the performance of Islamic banking in Indonesia and Malaysia using the Maqashid Sharia Index. The research used Simple Additive Weigting  method and independent analysis t-test. From this research it can be concluded that the performance value of Islamic banking in Indonesia using the Maqashid Sharia Index in 2014-2018 is 1.534 and Malaysia is 0.823. Based on the analysis of the independent t test, there is a significant difference between the average value of Islamic banks in Indonesia and Malaysia with a value of Tcount 2.819>Ttable 2.306, MSI's first goal is to obtain T-count value of 1.189 <2.306. The second objective of MSI is to get the T-count value of 2.327> 2.306. The third objective of MSI with T-count value of 1.856 <2.306 T table. This means that there is a significant difference in financial performance with MSI in Indonesia and Malaysia.

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