scholarly journals Islamsko bankarstvo i modeli financiranja u poslovanju islamske banke

2017 ◽  
Vol 6 (2) ◽  
pp. 65
Author(s):  
Nemanja Budimir
Keyword(s):  
United Arab Emirates ◽  
Islamic Law ◽  
Banking System ◽  
The Philippines ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Minority Religion ◽  
Conference Organization ◽  
The Uk

Islamic banking is now a widespread notion in both Islamic countries and the West. It denotes a bank form and finances that seek to provide services to clients without interest. Proponents of Islamic banking say that the main objective is the "fish", which is prohibited by Islamic law. This attitude toward interest contributed to the unification of several Islamic schools, with the aim of finding ways for the development of an alternative banking system that would be compatible with the rules of Islamic Laws, and in particular to the rules relating to the prohibition of interest. Since the mid-1970s, the number of Islamic banks is on the rise. Islamic banks are not only based in countries where Islam is the prevalent religion, such as Egypt, Jordan, Sudan, Bahrain, Kuwait, United Arab Emirates, Tunisia, Mauritania and Malaysia, but also in countries such as the UK, Germany and the Philippines where Islam is a minority religion. The International Islamic Bank, the Islamic Development Bank, whose shareholders are members of the Islamic Conference Organization are acting as sponsors for Islamic banking and finance throughout the Islamic world.

scholarly journals The Analysis of the Turkish Islamic Banking System Between 2005 and 2014

2016 ◽  
Author(s):  
Lívia Tálos ◽  
Gyöngyi Bánkuti ◽  
Jozsef Varga
Keyword(s):  
High Risk ◽  
Economic Crisis ◽  
Islamic Law ◽  
Banking System ◽  
Rating System ◽  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Conventional Banks

Islamic banking is a banking system that is based on the principles of sharia or Islamic law. The principles of Islamic finance forbid interest - this is commonly known as riba - charity (zakat), forbid high risk (gharar), forbid some transactions like gambling, and are based on PLS (Profit-Loss Share). The most important concept is that both charging and receiving interest are strictly forbidden; money may not generate profits. Islamic banks have largely survived the global economic crisis intact and they offer a safer operation than conventional banks. CAMEL analysis is a supervisory rating system to classify a bank's overall condition according to Capital (C), Assets (A), Management (M), Earnings (E) and Liquidity (L). In the analysis a variety of indicators were calculated based on data from the annual reports. The results of the four banks were averaged separately, then classified (1 = good, 2 = adequate, 3 = satisfactory, 4 = acceptable, 5 = unacceptable) according to the desired criteria, the changes over the years and the relative values of the four banks.

scholarly journals Factors Influencing Customers Loyalty Towards Islamic Banking: A Case Study in Gombak, Selangor

2020 ◽  
Vol 15 (1) ◽  
pp. 11-20
Author(s):  
Farhan Lukman Rahman ◽  
Wan Mohd Farid Wan Zakaria ◽  
Wan Muhd Faez Wan Ibrahim ◽  
Syed Khusairi Tuan Azam ◽  
Mohd Hafizan Musa
Keyword(s):  
Islamic Law ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Basic Principles ◽  
Independent Variables ◽  
Customer's Loyalty ◽  
Industry Needs ◽  
Structured Questionnaire

The Islamic banking system governs two (2) basic principles which are mutual sharing of profit or loss and the prohibition of the collection and payment of interest. These basic principles are important to the establishment of an Islamic bank. Islamic law prohibits any activities that involve interest, gambling and speculative. Having great competition with foreign and conventional bank, Islamic banking industry needs variety of services and products to be offered to attract customers which is in compliance with shariah law. Thus, the main objective of this study is to examine the factors that influence customer’s loyalty towards Islamic banking. The independent variables include shariah compliant, product quality, service quality, and convenience. This study is conducted using structured questionnaire and were personally administrated across 303 respondents in Gombak, Selangor. This study is significantly important for the industry to find out the explanations and motive of customer’s loyalty in Islamic banks. Eventually, it will help the industry to establish a better services and products for the customers.

scholarly journals “Muzarah” Share-Cropping and “Musagah” Irrigation as Methods of Partnership for Financing Agricultural Sector and Micro Finance Projects Practiced by Islamic Banks.

2020 ◽  
Vol 6 (2) ◽  
pp. 31-46
Author(s):  
Ahmed El-Murdi Saeed Omar ◽  
Keyword(s):  
Agricultural Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Systems ◽  
Banking And Finance ◽  
Finance Law ◽  
Academic Area ◽  
Business And Management ◽  
Muslim Scholars

In this paper, the researcher expected to explain provisions of Islamic financial jurisprudence in respect to the related and selected commercial contracts and to relate their implantation to Islamic Banking system. The objectives are to tell the reader: (1) how the pioneer Muslim scholars compiled and documented the provisions of Muzarah and Musagah as essential methods for partnership recently in Islamic Banking systems. The researcher adopts the APA style that is well known method for referencing to evaluate literature. Findings from the research showed that (1) Sharing corps is a contract allowed within Hanbali School of thought and in the view of Abu Yousuf and Mohammed bn Al-Hassan Alshybaini. (2) for the validity of share cropping conditions of: The land that should be cultivated, the seeds, the employees, the profit and the duration of the contract should be well stated. (3) Share cropping could be valid or vitiated. (4) The contract of Musagat or irrigation will be formed by offer and acceptance. (5) Contract of irrigation is handling tree to workers for purpose or irrigation or harvesting. (6) Contract of Musagah and Muzarah sharing the same conditions. (7) Both of the contracts bearing the same reasons of void or invalidity. The researcher recommends that relevant academic area of knowledge in particular Department sof: economics, banking and finance, law, Islamic Sciences, Business and Management to include the Islamic methods of investment in business, in their curriculums and syllabus at both undergraduate and postgraduate levels. Keywords: “Muzarah”, Share-Cropping, “Musagah”, Irrigation, Partnership, Financing, Agricultural Sector, Micro Finance, Projects, Islamic Banks.

scholarly journals ISLAMIC BANKING SYSTEM IN THE SULTANATE OF OMAN FROM THE PERSPECTIVE OF BANKING OFFICERS EMPLOYEES AND CUSTOMERS

2021 ◽  
pp. 13-28
Keyword(s):  
Islamic Law ◽  
Small And Medium Enterprises ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Management Framework ◽  
Risk Management Framework ◽  
Research Questions ◽  
Medium Enterprises ◽  
Method Approach

This research aims to determine the viability for the operation of Islamic banks within the Omani banking system. By looking into various opportunities for Islamic banking in Oman and given the unique rules on transactions (fiqh muamalat) of Islamic banking based on the Shariah precepts or the so-called Islamic law. As the establishment of small and medium enterprises (SMEs) is rapidly growing in Oman, many SMEs can draw support from Islamic banks. The study used a mixed method approach to answer the research questions. Do the participants patronize Islamic banking over conventional banking?. The study compared both conventional and Islamic Banking. The population of the study represented bank officers, bank employees and customers. The sample of the study (n=100) participated in the survey. Another selected sample participated in interviews. Findings revealed different views over Islamic banking. Islamic banking is careful to provide products and services. Also, they are found to be capable of offering products and processes that answers the need of certain aspects with a risk management framework that is distinct from what normal banking provides. The study findings support the need for Islamic banking systems as it would be easier to spread Islamic banking and financing.

The Moral Possibility of Islamic Banking System as Institution

2013 ◽  
pp. 143-172
Keyword(s):  
Phenomenological Model ◽  
Islamic Law ◽  
Banking System ◽  
Critical Examination ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Extensive Review ◽  
Review Of The Literature ◽  
Critical Understanding ◽  
Unity Of Knowledge

This is an applied chapter on the application of the phenomenological model of unity of knowledge to a critical understanding of the Islamic law, economics, finance, and banking philosophy of the Islamic banks in Indonesia. The chapter explains how the Indonesian Islamic banks are trying to introduce the moral and ethical factors in the mundane business of finance and banking as a sign of integrating God (i.e. the monotheistic law) with this world-system. The chapter goes on with its critical examination of the Indonesian case in the light of its theorem of universality and uniqueness of the monotheistic law as functional ontology. An extensive review of the literature is undertaken to establish its critical worldview of the predicament prevailing in the moral premise with Islamic economics, finance, and banking. The alternative prescription is provided in light of the phenomenological model of epistemic unity.

Good Corporate Governance Principles in Indonesian Syariah Banking

2020 ◽  
Vol 2 (1) ◽  
pp. 8-13
Author(s):  
Andrew Shandy Utama
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Islamic Law ◽  
Good Governance ◽  
Banking System ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Good Corporate Governance ◽  
Conventional Banks

Islamic banks are banks that carry out their business activities based on the principles of Islamic law in banking activities based on fatwas issued by the National Sharia Council of the Majelis Ulama Indonesia. This research aims to explain the principles of Good Corporate Governance in Islamic banking in Indonesia. The method used in this research is normative legal research. The results of the research explained that to maintain the trust of Indonesian people who are predominantly Muslim, Islamic banking must apply the principle of Good Corporate Governance in its management. The application of the principle of Good Corporate Governance in Islamic banking is strictly regulated in Article 34 Paragraph (1) of Law Number 21 of 2008, which emphasizes that Islamic banks must implement good governance that includes the principles of transparency, accountability, responsibility, professionalism and fairness in carrying out its business activities. Form of application of the principles of Good Corporate Governance in Islamic banking is supervision conducted by the National Sharia Council of the Majelis Ulama Indonesia in general and the Sharia Supervisory Board specifically in each Islamic bank. Based on data from the Financial Services Authority in 2017, currently there are 13 Islamic banks in Indonesia, 13 Islamic business unit of conventional banks, and 102 Islamic rural banks. This is evidence of the existence and development of Islamic banking that is significant in the national banking system.

scholarly journals Determinant of Indonesian Banking Profitability: Case Study Dual Banking System

2021 ◽  
Vol 4 (SI) ◽  
Author(s):  
Muhammad Nur Faaiz Fathah Achsani ◽  
Salina Kassim
Keyword(s):  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Economics Of Scale ◽  
Country Level ◽  
Panel Data Regression ◽  
Data Regression ◽  
Significant Difference ◽  
Conventional Banks

Islamic banking is considered as the perfect alternative of the current conventional financial system.  However, there is still a huge amount of criticisms in terms of its practice, with many claims that Islamic banking and finance simply replaces conventional banking terminology and offers near-identical services to its clients but at a higher cost. The objective of this study is to make a comparative empirical assessment on the determinants of profitability between the Islamic and conventional banks in Indonesia. The panel data regression is applied to analyze the relationship between profitability indicators and both industry and country level characteristics. As far as the author knows, only few studies compare the profitability of Indonesian Islamic banks and conventional banks, especially in using econometrics approach. From the empirical result in the combined model, it is known that conventional banks are more profitable than Islamic banks. Compared to the combined regression, there is no significant difference in terms of significance of the independent variables and its relationship with the dependent variable for the conventional bank regression. Conventional banks are more familiar for the community due to the long operation compared to Islamic banks. Socialization needs to be done with some approach starting from mosques and Islamic schools. The development of supporting industries such as halal industry and halal tourism are also important to increase the demand for Islamic banking product. Beside increasing the demand, efforts to increase the economics of scale is also important with various efforts such as merger or acquisition.

scholarly journals The attitude of Muslims and Non-Muslims towards Islamic Products and Services in the UK

2016 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Atsede Woldie ◽  
Md. Mahit Hossain
Keyword(s):  
Selection Criteria ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Systems ◽  
Banking And Finance ◽  
The World ◽  
The Uk

<p class="Style2"><strong>Islamic </strong>banks are the fastest growing banks in the world. Governments around the world are passing bills to enable the smooth operation of Islamic banking and finance as part of their financial systems. This paper explored the awareness. attitude, and their bank selection criteria of both •uslims and Non-Muslims in the UK. Thc results showed that although the Muslims knew the meaning of fundamental terms in Islam, non-Muslims arc totally unaware about basic Islamic financial terms and principles. They also perceived that products were only for Muslims people only. The study indicated that more than 46 percent of Muslims respondents perceive that religion is the only reason to motivate people to deposit money with Islamic banks.</p>

scholarly journals influence of the geographical environment on Islamic banking performance

2021 ◽  
Vol 20 ◽  
pp. e3146
Author(s):  
Ahmed Sameer El Khatib
Keyword(s):  
Fixed Effects ◽  
Islamic Law ◽  
Banking System ◽  
Principal Component ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Daily Data ◽  
Negative Effect ◽  
Geographic Environment ◽  
Main Components

The main goal of this study is to examine the influence of the geographic environment on the performance of Islamic banks present in four regions: Africa, Asia, Europe and North America. To achieve this goal, we have used daily data from 113 Islamic banks between 2010 and 2019. We applied different methodological approaches, such as principal component analysis and quantile regression with fixed effects for panel data. As a result, we found that the analysis of the main components shows that the performance of Islamic banks varies between regions. The regression of the linear panel highlights that the geographic environment positively and significantly affects the Islamic banking system, suggesting the importance of this aspect’s effects. Finally, the environmental effect seems to vary with the quantiles, bringing positive effect to the lower quantile and negative effect to the highest quantile. This quantile specification points to the environment-performance nonlinear relationship of the Islamic bank, reflecting a discipline variable in the time imposed by the Council of Shariah or Islamic Law. This discovery helps to better explain the main difference between Islamic banks in the East and those in the West, and also allows investors to adjust their portfolio options when considering the products of Islamic banks according to regional specificities.

Islamic Banking in Nigeria: Issues and Prospects

2016 ◽  
Vol 4 (2) ◽  
pp. 34 ◽  
Author(s):  
Nuruddeen Abba Abdullahi
Keyword(s):  
Public Awareness ◽  
Banking System ◽  
Islamic Banking ◽  
Secondary Sources ◽  
Banking And Finance ◽  
Adequate Knowledge ◽  
Islamic Religion ◽  
Developmental Opportunities ◽  
The Subject ◽  
Nigerian Banking

The Nigerian banking reform precipitated the adoption of Islamic banking and finance in 2009 as additional door to banking mechanism in the country. However, the implementation of the Islamic banking or non-interest banking has generated a lot of debate, specifically because its foundations are based on Islamic religion. This paper briefly reviews the concept, the challenges and prospects of Islamic banking in Nigeria. The paper relies on the secondary sources by reviewing and analysing various works on the subject. A reflection on the size of its population and the developmental opportunities indicates that Nigeria has the prospect of becoming the hub centre of Islamic finance in Africa. Yet there are numerous challenges to the development of the Islamic banking system in the country, including misrepresentation of the system, lack of linkages and investment institutions, lack of adequate knowledge, as well as shroud business ethos and corruption, which is endemic in the country. The paper recommends the need for greater public awareness about Islamic banking and creation of enabling environment (i.e. the legal, accounting and taxation systems) for the working of Islamic financial system.   

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