scholarly journals Performance of Depositor Fund: A Lesson from Indonesian Islamic Banking System

ETIKONOMI ◽  
2017 ◽  
Vol 16 (1) ◽  
pp. 53-70
Author(s):  
Sayakhmad Olimov ◽  
Abdul Hamid ◽  
Muhammad Arief Mufraini
Keyword(s):  
Sampling Method ◽  
Banking Sector ◽  
Annual Report ◽  
Banking System ◽  
Secondary Data ◽  
High Ratio ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Statistical Research ◽  
Financial Ratio

The objective of study is to analyze the performance of Depositor Fund in the operation of Islamic bank as an alternative banking sector in financial market based on the profit and loss mode of financing in the case of Indonesia. The research methodology is quantitative analysis based on the Multiple Regression. In the study secondary data is used and were collected from Annual Report of Islamic Banks. The sample of study is the bank, which is selected from 36 samples of Islamic Commercial Banks relates to non-probability purposive sampling method as a statistical research techniques. The result of study showed that the performance of Depositor Fund in the operation of Islamic banks has negative proficiency and otherwise the Islamic banks have weaknesses capability to improve the high ratio of increasing productivity Depositor Fund based on the financial ratio factors, which are analyzed.DOI: 10.15408/etk.v16i1.4871

scholarly journals PENGARUH PENGUNGKAPAN IDENTITAS ETIS ISLAM, AGENCY COST DAN INTELLECTUAL CAPITAL TERHADAP KINERJA KEUANGAN (STUDI PADA BANK UMUM SYARIAH YANG TERDAFTAR DI OTORITAS JASA KEUANGAN PERIODE 2016-2018)

2021 ◽  
Vol 9 (1) ◽  
pp. 57
Author(s):  
Mursidah Mursidah ◽  
Yunina Yunina ◽  
Meutia Zahara
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Intellectual Capital ◽  
Sampling Method ◽  
Annual Report ◽  
Secondary Data ◽  
Agency Cost ◽  
Islamic Banks ◽  
Ethical Identity ◽  
Identity Disclosure

Abstract: This study aimed to examine the influence of the Islamic ethical indentity disclosure, agency cost, and intellectual capital to the financial performance proxied by return on asset (ROA) in Islamic commercial bank in 2016-2018. Secondary data were used from annual report were published on the website etch Islamic bank between 2016-2018. The purposive sampling method using in this research, so there are theerten Islamic banks are object of research. The analytical method used is multiple linier regresstion analysis using the SPSS 20 softwer program. The results of this study shows that partial of the Islamic ethical identity disclosure have not effect on the financial performance proxied by return on asset (ROA) in Islamic commercial bank, the agency cost have effect negative on the financial performance proxied by return on asset (ROA) in Islamic commercial bank, and intellectual capital have effect positif on the financial performance proxied by return on asset (ROA) in Islamic commercial bank in 2016-2018. Keywords: Islamic ethical identity disclosure, agency cost intellectual capital, financial performance and  ROA.

scholarly journals ISLAMIC CORPORATE IDENTITY IN THE PRACTICE OF ANNUAL REPORT DISCLOSURE ISLAMIC BANK

2012 ◽  
Vol 1 (1) ◽  
pp. 34
Author(s):  
Ratih Paramitasari
Keyword(s):  
National Economy ◽  
Annual Report ◽  
Banking System ◽  
Corporate Identity ◽  
Annual Reports ◽  
Islamic Banking ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
The Ideal

<span>The development of Islamic banking is directed to provide great benefit to society and contribute optimally to the national economy. Islamic banking system and conventional banking system together synergistically supports the mobilization of public funds broadly improve the ability of finance to sectors of national economy. Together with the development of Islamic banking industry in Indonesia, there are many controversies from the community, where most problems highlighted are sticking the label of syariah in Islamic financial institutions are still considered not feasible. Based to these problems, researchers want to conduct this research on the suitability of the annual report disclosure practices of Islamic banks in Indonesia to the reporting standards that reflect the ideal of Islamic Corporate Identity.This study using a checklist for the data analysis consisting of the five themes and the eight dimensions that are should be disclosed in annual reports of Islamic banks. From the results of the assessment aspect of the checklist is then poured in the index EII (ethical identity index). From the calculation of EII, it can be seen that the annual report disclosure practices syariah banks for 2007, 2008, and 2009, has approached the ideal reporting standards that reflect the Islamic Corporate Identity.</span>

scholarly journals Difference Analysis of Social Performance With The Islamic Social Reporting (ISR) in Syariah Banking That Are in Indonesia and Malaysia

2017 ◽  
Vol 1 (01) ◽  
pp. 53
Author(s):  
Aprila Dwi Widayati ◽  
Raditya Sukmana
Keyword(s):  
Sampling Method ◽  
Social Performance ◽  
Secondary Data ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Analysis Method ◽  
The Difference ◽  
Better Than

<p>The purpose of this research is to examine the difference of Islamic Social Reporting (ISR) disclosure level of islamic banking in Indonesia and Malaysia based on ISR index. The samples were selected by purposive sampling method. The samples that is used in this research is five islamic banks in Indonesia and five islamic banks in Malaysia. This research uses secondary data, that is annual report from 2010-2012. Annual reports were analyzed using content analysis method. Furthermore, the differences of ISR disclosure level were tested using independent sample t-test. The results showed that ISR disclosure level of islamic banking in Indonesia is better than ISR disclosure level of islamic banking in Malaysia. Based on the results of hypothesis testing, found that there are significant differences in the disclosure level between islamic banking in Indonesia and Malaysia.</p><p><br />Keywords: Islamic Social Reporting, Islamic Social Reporting Index, Islamic Banking</p>

scholarly journals Stability, efficiency and financial risks of islamic banks in conditions of instability of global financial system

Upravlenie ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 105-113 ◽  
Author(s):  
Tatyana Mazurina ◽  
Shukrullokhon Sharipov
Keyword(s):  
Banking Sector ◽  
High Efficiency ◽  
Banking System ◽  
Financial System ◽  
Islamic Banking ◽  
Positive Trend ◽  
Financial Risks ◽  
Islamic Banks ◽  
Crisis Period ◽  
Global Financial System

In modern conditions of implementation Islamic model of banking, the issues of increasing efficiency of its activities and ensuring the long-term stability of Islamic banks come to the fore. Article analyzes the activities of Islamic banks in the post-crisis period, both in the global Islamic banking sector as a whole, and in the context of individual countries in which Islamic banks are predominantly or significantly represented, as well as financial risks that pose a threat of losses for Islamic banks. It has been concluded that the Islamic financial system is becoming one of the most important components of the international financial system, and Islamic banks within the global financial system are becoming more recognized and competitive, as they demonstrate a sufficiently high efficiency and stability of activity, a positive trend of development. Analysis found that Islamic banking has demonstrated its reliability and stability in the post-crisis period and continues to be a viable and effective mechanism of financial intermediation in the conditions of global financial system instability. The differences in the functioning and performance of Islamic banks in different countries within a single consolidated Islamic banking system have been revealed, a comparative analysis effectiveness of banking sectors a number of Muslim countries has been given, the directions of development of Islamic banking in them have been shown. Conclusions have been drawn on the need for Islamic banks to introduce effective mechanisms for monitoring and managing financial and investment risks in order to increase their ability to withstand adverse external factors, since in the future, despite the positive trends in the activities of Islamic banks, there are potential financial risks due to the growth of their current costs associated with the possibility of potential deterioration in the quality of assets and reduction in the level of profit.

scholarly journals Competition between conventional and Islamic banks in Malaysia revisited

2020 ◽  
Vol 11 (9) ◽  
pp. 1771-1789 ◽  
Author(s):  
Rafik Harkati ◽  
Syed Musa Alhabshi ◽  
Salina Kassim
Keyword(s):  
Banking Sector ◽  
Monopolistic Competition ◽  
Panel Data Analysis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Perfect Competition ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional And Islamic Banks

Purpose This paper aims to assess the nature of competition between conventional and Islamic banks operating in Malaysia. It is an effort to enrich the existing literature by offering an empirical compromise on the differences in the results of studies related to competition between the two types of banks. Design/methodology/approach Secondary data on all banks operating in Malaysia’s diversified banking sector is collected from the FitchConnect database for the period 2011-2017. A non-structural measure of competition (H-statistic) as informed by Panzar–Rosse is used to measure the competition between conventional and Islamic banks. Panel data analysis techniques are used to estimate H-statistic. Wald test for the market structure of perfect competition/monopoly is used to affirm the validity and consistency of the results. Findings The findings of this study signify that the Malaysian banking sector operated under monopolistic competition during the period of study. The long-run equilibrium condition holds for the Malaysian banking sector. Competition among conventional banks is more intense than that among Islamic banks. Financial reform endeavours of Bank Negara Malaysia (BNM) along with the liberalisation wave of the financial system were successful in promoting competition, rendering the financial system contestable, resilient and dynamic. Practical implications Regulators and policymakers may find the results beneficial in terms of rethinking the number of banks operating in the Islamic sector. The number of banks, however, is not the only determinant of competition in the banking sector. Implications of competition change for stability and risk-taking behaviour of banks should be considered. Originality/value Within the context of Malaysia’s diversified banking system, given the contradictory results reported in studies on competition, this study is an effort to provide a plausible middle ground. It suggests a possible answer as to why competition nature has not changed since the policy change initiatives of BNM, namely, banks merger, expansion of Islamic banking operation scope and liberalisation process.

Does the tag “Islamic” help in customer satisfaction in dual banking sector?

2019 ◽  
Vol 10 (1) ◽  
pp. 138-149 ◽  
Author(s):  
Fayaz Ahmad Lone ◽  
Ulfat Rashid Bhat
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Level Of Satisfaction ◽  
Alternative Approach ◽  
Future Strategy ◽  
Conventional Banks

Purpose The purpose of this paper is to find out the importance of the tag “Islamic” in the title of banks. This will help to determine the future strategy of Islamic banks, while expanding to the countries where Islamic banking is seen as a religious banking and not an as an alternative approach to the conventional banking. Design/methodology/approach Adopting convenience sampling, a total of 596 customers of both Islamic and conventional banks were surveyed from four regions of Saudi Arabia (Makkah, Madinah, Riyadh and Dammam) using a self-structured questionnaire on a five-point Likert scale. Findings The results concede that Islamic banks without the tag “Islamic” and conventional banks have same customer satisfaction. There are some factors other than the tag “Islamic” which are driving customers towards Islamic banking. Those factors include physical aspects of the bank, level of satisfaction with the services, dealing and attendance by the staff and safety and security of the bank. Besides, the application of fundamental principles of Islamic banking works as a key motivation for customer satisfaction with Islamic banking. Practical implications Applying the tag “Islamic” is not as important as implementing the principles of Islamic banking. Islamic banks can survive and compete well even without using the “Islamic” tag if they implement the prime principles of Islamic banking and work on improving the factors highlighted by this study. This study can prove to be helpful in the expansion of Islamic banking in the countries where religious banking is not generally preferred by customers. Originality/value This is the first study to find out the customer satisfaction in a dual banking system (comprising of conventional banks and Islamic banks that do not use the tag “Islamic”), thereby filling the existing gap in the Islamic banking literature.

scholarly journals Analisis Perbedaan Kinerja Sosial Dengan Indeks Islamic Social Reporting (ISR) pada Perbankan Syariah Yang Ada di Indonesia dan Malaysia

2017 ◽  
Vol 4 (1) ◽  
pp. 62
Author(s):  
Aprilia Dwi Widayati ◽  
Raditya Sukmana
Keyword(s):  
Sampling Method ◽  
Secondary Data ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Analysis Method ◽  
Content Analysis Method ◽  
The Difference ◽  
Better Than

The purpose of this research is to examine the difference of Islamic Social Reporting (ISR) disclosure level of islamic banking in Indonesia and Malaysia based on ISR index. The samples were selected by purposive sampling method. The samples that is used in this research is five islamic banks in Indonesia and five islamic banks in Malaysia. This research uses secondary data, that is annual report from 2010-2012. Annual reports were analyzed using content analysis method. Furthermore, the differences of ISR disclosure level were tested using independent sample t-test. The results showed that ISR disclosure level of islamic banking in Indonesia is better than ISR disclosure level of islamic banking in Malaysia. Basedon the results of hypothesis testing, found that there are significant differences in the disclosure level between islamic banking in Indonesia and Malaysia.

scholarly journals ANALISIS IMPLEMENTASI PRINSIP BAGI HASIL, RISIKO DAN PENANGANAN PEMBIAYAAN BERMASALAH TERHADAP PEMBIAYAAN MUSYARAKAH DAN PEMBIAYAAN MUDHARABAH (STUDI KASUS:BANK SYARIAH MANDIRI KC MANADO)

2016 ◽  
Vol 5 (2) ◽  
pp. 207
Author(s):  
Kartika Soetopo ◽  
David P.E. Saerang ◽  
Lidia Mawikere
Keyword(s):  
Banking System ◽  
Secondary Data ◽  
Profit Sharing ◽  
Special Treatment ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financing Risk ◽  
Conventional Banks ◽  
Branch Office ◽  
Two Sides

The banking system in Indonesia is conducted by the dual banking system where the system is divided into conventional and Islamic. Presence of Islamic banks has provided  investment alternatives without worrying about the risk the development of remuneration with an uncertain interest method. But on this implementation, Islamic banking requires special treatment  different from conventional banks, especially in terms of handling the risks and challenges faced by Islamic banks. The problem is how to implement the profit sharing of principal and risks and how the handling Non Performing Finance of the implementation the profit sharing. To answer the problems of research using qualitative methods by analyzing primary and secondary data so as to produce the results of interviews. The result of this study show that in musyarakah principle not much different from the mudharabah, that both a system of partnership between the two sides or more to administer a particular business with profit sharing corresponding portion (ratio) were agreed at the beginning of the agreement. On this Implementation Mudharabah and Musyarakah have a some differences. While the risk in financing the Musyarakah and mudharabah, especially on this the financing application, high relatively, among other side streaming, negligence and misconduct willful, concealment of profits by customers when customers are not honest. The amount of financing risk is shown in the ratio of non-performing finance (NPF). The high of NPF indicates the large number of borrowers who can’t repay their finance in accordance with the initial agreement that has been agreed between the bank and the customer, so financing becomes problematic. Funding problems can be caused by the bank itself, the customers or external parties. Bank Syariah Mandiri (BSM) Branch Office Manado has been anticipating the event of a dispute banking, especially in the provision of financing problems. On this theory of completion financing problems, be done with several measures including the rescue action by intensive bill, rescheduling, re-requirements and realignment. Rescue actions made by bank on this condition that the customer is still considered to have good faith to settle the payment. Keywords: Islamic Banking, Profit Sharing, Risk, and Financing Problems

scholarly journals An Analysis of Islamic Banks Performance using Sharia Maqashid Index, Sharia Conformity and Profitability (SCnP) and CAMELS

2020 ◽  
Vol 2 (01) ◽  
pp. 15-30
Author(s):  
Mokhamad Ikhsan Ramdhoni ◽  
Firdaus Ahmad Fauzi
Keyword(s):  
Quantitative Research ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Measuring Instrument ◽  
Ratio Measurement ◽  
Financial Ratio ◽  
Analysis Technique ◽  
Index Approach ◽  
Asset Quality

Indonesian Islamic banking system has existed for more than 25 years old. However, at this age, it still has not had its own instrument for measuring performance and still adopts the orthodox measuring instrument which is restricted to financial ratio measurement only. The use of this orthodox measuring instrument as the only tool to evaluate the Islamic banks performance is considered less suitable, both in terms of the features and the purposes of Islamic banking in general. Therefore, this study aims to evaluate the performance of Islamic banks using the Sharia Maqashid Index, Sharia Conformity and Profitability (SCnP) and CAMELS approaches. The population of this study was all Islamic Commercial Banks listed in Bank Indonesia from 2012-2016, while the data analysis technique used the quantitative research with descriptive approach. The Sharia Maqashid Index approach has three variables; educating people, establishing justice, and achieving public interest. The Sharia Conformity and Profitability (SCnP) approach has two variables; Sharia Conformity and Profitability. Meanwhile, the CAMELS approach has five variables; Capital, Asset Quality, Management, Earning, and Liquidity. The results of the research using the Sharia Maqashid Index approach shows that Bank Muamalat is in the first rank, followed by Bank Syariah Mandiri, BNI Syariah, and Bank Mega Syariah. By using the SCnP approach, the research shows that there are no Islamic banks in the upper right quadrant that has high sharia suitability and high profitability. Moreover, the CAMELS approach shows that all Islamic banks are quite healthy. The application of these performance measurement approaches become a factor that plays a dual role for the achievement of financial performance and sharia conformity.

scholarly journals Pengaruh Perkembangan Bank Umum Syariah Terhadap Pertumbuhan Ekonomi Indonesia Periode 2010-2015

2017 ◽  
Vol 4 (12) ◽  
pp. 952
Author(s):  
Firmansyah Putra ◽  
Muhammad Nafik Hadi Ryandono
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Cross Section ◽  
Annual Report ◽  
Secondary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Cross Section Data ◽  
Production Index ◽  
Section Data

The study aims to examines the influence of Islamic banks on economic growth in Indonesia during the period 2010–2015. Secondary data that were used in this research were in the form of monthly time series and cross-section data during the year 2010–2015. The data were obtained based on monthly statistical banking report from Bank Indonesia (BI) andmonthly statistical reports of the Monthly Industrial Production Index in the Large and Medium scale from Central Bureau of Statistics (BPS) of Indonesia and also annual report from each islamic banks that conclude in this observation. Total assets, and total financing as variables that are representing the Islamic bank. GDP (Gross Domestic Product) is the variable that representing economic growth. By using Multiple Regression Analysis, the result shows that generally, Islamic banking affects economic growth in Indonesia.

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