scholarly journals SHARIA BANKING FINANCING MODEL IN ENHANCING THE HALAL CERTIFICATION OF MICRO, SMALL, MEDIUM ENTERPRISE INDUSTRY

El Dinar ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 19-32
Author(s):  
Nasrulloh Nasrulloh
Keyword(s):  
Financial Institution ◽  
Model Solution ◽  
Islamic Banking ◽  
Analytic Method ◽  
Islamic Banks ◽  
Product Certification ◽  
Medium Enterprise ◽  
The Common ◽  
Financing Model ◽  
Study Offer

A large number of Micro, Small, Medium Enterprise (MSMEs) that did not have a halal certificate yet due to lack of funds is one of the main problems in the failure of the implementation of the JPH Law mission. Halal Product Certification Agency (BPJPH) demands all products sold in Indonesia ought to have a halal certificate in 2019. This study aims to provide a model solution from the financial institution side. Islamic banking as a sharia financial institution has a strategic part to help MSMEs, offer a variety of contracts, and make MSMEs able to carry out halal certification processes. By using descriptive-analytic method, the results of this study offer the financing model with murābahah and mudhārabah contract. The financing model with a murābahah contract is applied as in the common purchasing contract. While the financing model with a mudharabah should be adjusted to the principle of profit-loss sharing with some period adjustment. The implication of this research shows that Islamic Banking can be an intermediary between the community and BPJPH. The submission process of halal certificates through the Islamic banks cooperation is considered easier, more efficient, and transparent. 

Potential of Islamic finance: A survey of Tunisian Northwest companies

2017 ◽  
Vol 5 (2) ◽  
pp. 28
Author(s):  
Rym Ammar Ayachi ◽  
Dhafer Saidane ◽  
Fayçal Mansouric
Keyword(s):  
Financial Institution ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Finance Development ◽  
Negative Effect ◽  
Survey Results ◽  
Potential Demand ◽  
Northwest Region ◽  
Do So

The present paper aims to assess the Islamic products potential demand for entrepreneurs in the Tunisian Northwest region. In order to do so, we developed a questionnaire which was sent to these entrepreneurs. The survey results show that the latter perceive Islamic Finance as a seductive phenomenon. However, its development appears to be difficult. Indeed, according to the survey results, the lack of knowledge may impede the expansion of Islamic banking in Tunisia. Moreover, the following factors: cost, religious conviction, proximity, flexibility and satisfaction of the needs, may affect the entrepreneurs' choice to deal with Islamic financial institution. In addition, the lack of entrepreneurs' confidence with regard to the compliance of Islamic banking with the Shariah principles has a negative effect on Islamic finance development in the Tunisian Northwest region. For this reason, Tunisian Islamic banks should put more effort to reinforce their competitiveness.

scholarly journals DIMINISHING MUSHARAKAHIN ISLAMIC BANKS: AN ANALYSIS BASED ON HOME FINANCING

2021 ◽  
Vol 04 (01) ◽  
Author(s):  
Muhammad Junaid Ali Khan ◽  
Abdul Majid
Keyword(s):  
Banking Sector ◽  
Modern World ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Significant Growth ◽  
Banking Systems ◽  
Widespread Acceptance ◽  
Banking Institutions ◽  
The Common

Islamic Banking is one of the fastest growing banking systems in the modern world. It has also achieved significant growth in the Pakistani banking sector in the recent decades. Diminishing Musharakah (DM) is an Islamic mode of finance which not only provides home financing facilities to the customers but also provides other long term financing transaction such as machinery and equipment financing in Islamic banks. In September 2020, DM has the largest share in the Islamic banking financing in Pakistan at 34.5 percent. Considering the widespread acceptance of DM, this paper discusses the shariah structure of DM and its use as a home finance product, specifically its variants, in Islamic Banking Institutions. This paper also clarifies the issues which create confusions in the minds of the common public about Islamic banking products, emphasizing the importance of this product for Islamic Banking Institutions

scholarly journals Debt And Equity-Based Financing, Size And Islamic Banks Profitability: Empirical Evidence From Indonesia

2019 ◽  
Vol 12 (2) ◽  
pp. 227
Author(s):  
Rofiul Wahyudi ◽  
Siti Mujibatun ◽  
Riduwan Riduwan
Keyword(s):  
Capital Structure ◽  
Empirical Evidence ◽  
Research Method ◽  
Financial Institution ◽  
Islamic Banking ◽  
Model Estimation ◽  
Islamic Banks ◽  
Financial Reports ◽  
The Public ◽  
Structure Scheme

<em></em><em></em><p><em>Islamic</em><em> Banking as a financial institution functions to collect and distribute funds to the public. To carry out these functions, the capital structure scheme uses debt and equity based financing. In addition, the implementation is also influenced by the size which ultimately affect the performance of Islamic banking.</em><strong><em> </em></strong><em>This study aims to examine debt and equity-based financing, size and Islamic banks profitability: empirical evidence from Indonesia. The research method used is model estimation test of Moderated Regression Analysis (MRA) to see size as moderation variable. Banks profitability is represented by ROA and ROE. This study uses Islamic bank panel data from financial reports published during the sample period covering 2008-2017. The empirical findings show that debt and equity-based financing affect banks profitability. </em><em>Furthemore</em><em>, bank size does not moderate the debt and equity-based financing relationship to Islamic banks profitability.</em><strong></strong></p><p><strong><em></em></strong><em><br /></em></p>

scholarly journals The Implementation of Wakalah Contract by Multifinance Companies in Indonesia

2019 ◽  
Vol 1 (01) ◽  
pp. 79
Author(s):  
Rachmawaty Rachmawaty ◽  
Kartika Dian Pandaya ◽  
Alshamma Jamal Mohammed Al Azab
Keyword(s):  
Special Reference ◽  
Financial Institution ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Main Study ◽  
End User ◽  
Potential Risks

The purpose of this paper is to discuss Wakalah contract which is one of the Islamic banking contracts. Therefore, our main study is the implementation of Wakalah in Indonesia. Wakalah in Indonesia has special reference which is Multifinance company (MFC). MFC is an entity of non-bank financial institution conducts business activities to finance goods or services.Therefore, this research is going to discuss how Wakalah is practiced in Indonesia, where Islamic banks appoint MFC as an agent to do service for end user “customer” on behalf of the bank. Consequently, the objective of this paper is to discuss the implementation of Wakalah with Mudharabah and Wakalah with Murabahah by MFC in Indonesia in terms of operation, the potential risks that might be occur and shariah issues in terms of ownership and fee. However, there are particular areas in terms of operation that MFC should improve, as well as, banks have to be aware of its operational way of conducting agreement so banks mitigate any kind of risks or negligence.

scholarly journals Tantangan Konversi Bank Konvensional Menjadi Bank Syariah di Aceh Berdasarkan Qanun Lembaga Keuangan Syariah No 11 Tahun 2018

2020 ◽  
Vol 3 (2) ◽  
pp. 229
Author(s):  
Rahmawati Rahmawati ◽  
Khairul Putriana
Keyword(s):  
Financial Institutions ◽  
Banking Industry ◽  
Financial Institution ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Institutions ◽  
Conventional Banks ◽  
Conventional Bank

<p><em>The presence of the Islamic Financial Institution Qanun No 11 </em><em>in </em><em>2018 is a special right for Aceh and has brought a breath of fresh air to the development of the Islamic banking industry in Aceh, a number of conventional banks in Aceh are required to convert to Islamic banks, The purpose of this study is to explain the procedure for accelerating the conversion of unconventional banks to Islamic banks in Aceh and to explain the challenges of banking institutions with the obligation to convert financial institutions in Aceh. The obligation to convert a conventional bank into a sharia bank is clearly as stipulated in article 6 points e and d, although the process of converting a conventional bank to a sharia bank is not found directly in the qanun, but every bank that does the conversion must refer to BI regulations namely PBI No. 11 / 15 / PBI-2009, this is as explained in article 12 "before carrying out business activities, LKS must have a business license in accordance with the provisions of the legislation".</em></p><br /><p> </p>

scholarly journals MANAJEMEN RISIKO PEMBIAYAAN MUDHARABAH PADA PERBANKAN SYARIAH

2015 ◽  
Vol 6 (1) ◽  
pp. 55
Author(s):  
Indrianawati Indrianawati ◽  
Nisful Lailah ◽  
Dewi Karina
Keyword(s):  
Risk Management ◽  
Data Collection ◽  
Qualitative Approach ◽  
Good Faith ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Problems And Solutions ◽  
The Common ◽  
Common Problems

The purpose of this research is to determine risk management of mudharabah financing in Islamic banking limited to the causes of the low number of mudharabah financing, the common problems and solutions. The method of the research is using a qualitative approach with a case study strategy. The informants are obtained from 3 Islamic Banks (BUS), namely BMI, BSM and BNI Syariah. The data collection is conducted by combining the questions and the obtained data with the result of interview with the Account Officer from the 3 Islamic Banks; BMI, BSM, and BNI Syariah. The result of the research showed that the low number of mudharabah financing is caused by the massive risk, particularly the risk of losses on the bank income. Meanwhile, the problems that commonly occur are non-performing financing because of the side streaming and manipulated data. The solution is restructuring to the bank’s customer who has a good faith. In contrast, bank’s customers that have no good willing to fulfill their obligation will be put into the insurance execution.

scholarly journals ANALISIS PENGETAHUAN NASABAH TENTANG PRODUK PERBANKAN SYARIAH (Studi pada Bank Muamalat KCP Malang Kepanjen)

2019 ◽  
Vol 10 (2) ◽  
pp. 163-180
Author(s):  
Rosyidah ◽  
Muhammad Nizar ◽  
Khoirul Huda
Keyword(s):  
Quantitative Method ◽  
Financial Institution ◽  
Developed Countries ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Customer Knowledge ◽  
Level Of Knowledge ◽  
Branch Office

Banks are not something that is alien to people in developed countries. People in developed countries really need the existence of a bank. The bank is considered a financial institution that is safe in carrying out various types of financial activities. Islamic banks are developed based on principles that do not allow separation between temporal and religious matters. This principle requires compliance with sharia as the basis of all aspects of life. This report addresses the problem of the level of knowledge of customers about Islamic banking products at Bank Muamalat, Kepanjen Sub-Branch Office Malang. This study uses a quantitative method from the results of observation, practice and spread the questionnaire to the customers of Bank Muamalat, Kepanjen Sub-Branch Office Malang. The results of the analysis show that the customer's knowledge of the product is higher than the customer's knowledge about buying and using. While customer knowledge about purchases is lower than customer knowledge about products and usage. In addition, customer knowledge has a positive and significant effect on the decision to become a customer at Bank Muamalat, Kepanjen Malang Sub-Branch Office.

scholarly journals GENERAL REGULATORY FRAMEWORK IN RASTIN PROFIT AND LOSS SHARING BANKING:

2019 ◽  
Vol 2 (1) ◽  
pp. 51-66
Author(s):  
Bijan Bidabad
Keyword(s):  
Banking System ◽  
Legal Framework ◽  
Islamic Banking ◽  
Legal Environment ◽  
Islamic Banks ◽  
Investment Return ◽  
Regulatory Frameworks ◽  
Practical Development ◽  
The Common ◽  
Conventional And Islamic Banks

This paper aims to explain some auxiliary regulatory pillars and complementary considerations and systems in Rastin Banking. Rastin Banking is a full Islamic Banking System with all necessary parts for banking operations that can be installed in conventional and Islamic banks both. In this paper, we are going to explain the auxiliary preparations of this banking system.  Rastin Banking complies with the nature of financial intermediary activity (partnership of depositor in the yields of the fund receiver via the bank). In order to fulfil this goal despite particular formation, financial structure, instruments and workflow many other auxiliary considerations are defined to remove banking shortages in a legal framework. To handle Rastin Banking and to remove the common banking obstacles, a set of particular theoretical and operational regulatory frameworks should be defined to fulfil the participation operations. In this paper, we will have a look at the auxiliary legal environment to setup Rastin Banking. This system requires more elaborations for further practical development and adjustment. In this system, the investment return of the participation is distributed to the parties of financial partnership (depositor, entrepreneur and bank), and it is done by eliminating fixed interest rate.

scholarly journals BANK SYARIAH DALAM PERSPEKTIF FILOSOFIS,YURIDIS DAN SOSIOLOGIS BANGSA INDONESIA

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Ahmad Supriyadi
Keyword(s):  
Financial Institution ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Sociological Perspective ◽  
Philosophical Perspective ◽  
Islamic Bank ◽  
The People ◽  
Welfare Society ◽  
Conventional Banks

<p> Islamic bank is a financial institution that is essential for the people of Indonesia as an institution that is able to portray a welfare society with its products when it is implemented consistently. But the understanding of Islamic banks in the community is still in doubt because of Islamic bank same as conventional banks. Improper understanding of it can be explained by the philosophical, juridical and sociological.Islamic banking is a bank in its operations based on Islamic principles both in raising funds and mudaraba wadiah principles; in financing the purchase using the principles of Murabaha, salam and istishna; the issuing bank services products sharia apply the principle of al-wakalah,al-Hiwalah,al-qardh,al-kafalah, and al-Rahn. Three products when viewed legally has implemented of Constitution Number 21 concerning Islamic banking, and in a philosophical perspective in accordance with Pancasila, grand norm Constitution the 1945 and the Quran-Hadith, whereas in sociological perspective these principles have been entrenched in Indonesian society cooperation in agriculture "maro, mertelu" in livestock typically "mertelu", so it is said that the sociological principles of Sharia have been popular in Indonesia society.</p><p>Keywords:philosophy,juridical,sociology.<br /><br /></p>

scholarly journals THE ISSUES AND CHALLENGES OF SHARIAH HARMONIZATION OF THE CROSS BORDER TRANSACTIOINS: CONCEPTUAL REVIEW OF ISLAMIC BANKING INDUSTRIES

2020 ◽  
Vol 3 (2) ◽  
pp. 1-9
Author(s):  
Abul Bashar Bhuiyan ◽  
Md. Jafor Ali ◽  
K. M. Anwarul Islam ◽  
Md. Shahbub Alam ◽  
Mohammad Solaiman
Keyword(s):  
Jel Classification ◽  
Global Markets ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Market Demand ◽  
Cross Border ◽  
The Common ◽  
The Cross ◽  
Conventional Counterpart ◽  
Regulatory Challenges

The paper aims to identify major’s regulatory challenges are facing in maintaining proper harmonization of Shariah rulings of Islamic Bank across the world in the cross-border activities. The study found that the Islamic banking is confronting challenges to make appropriate rules and regulations for making the common standardized mode of finance to cope up with present market demand for their customer with conventional counterpart base on the Islamic sharia principles. Particularly, in the arena of competing in the global markets and establish unique regulatory institutions for proper harmonization of Shariah rulings of Islamic Banks over the cosmos in the cross-border actions. The study recommends that policymakers are to pay attention to solve the above regulatory issues to face the existing challenges for the smooth financial operation in the future. JEL Classification Codes: G21, G24, L26, P51.

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