scholarly journals ISLAMIC BANK ASSET GROWTH: PREDICTIVE ASSESSMENT TOWARD DOMINANT VARIABLES AFFECTING

2021 ◽  
Vol 7 (2) ◽  
pp. 267
Author(s):  
Dorry Dermawan ◽  
Hunainah Hunainah ◽  
Bambang Dwi Suseno ◽  
Basrowi Basrowi
Keyword(s):  
Research Design ◽  
Sample Selection ◽  
Path Coefficient ◽  
Islamic Banks ◽  
Probability Sampling ◽  
Islamic Bank ◽  
Asset Growth ◽  
Predictive Assessment ◽  
Work Units

This study departs from asset growth in Islamic banks which has decreased in the last four years even though assets have increased every year. This research is structured to be the basis for making policies to increase the growth of assets of Islamic banks. The research design used is quantitative with the help of smart PLS ver.3.3. The number of samples is 94 people from a population of 123 employees of Islamic Banks Serang and Cilegon Branch Offices with supervisory positions and above. The sample selection in this study uses probability sampling, so that all branch offices of Islamic banks in Cilegon and Serang as well as all supervisory work units have the same opportunity to be selected as samples. The results indicate that the ones that have the biggest influence in increasing the growth of Islamic bank assets are the financing to deposit ratio and non-performing financing. This can be seen from the path coefficient value resulting from this study between financing to deposit ratio on asset growth has a coefficient value of 2.818 and non-performing financing on asset growth has a coefficient value of 3.767. Thus, both financing to deposit ratio and non-performing financing influence increasing the growth of assets of Islamic banks. The results of this study emphasize to bankers to maintain the quality of financing to remain smooth and avoid non-performing financing.  

scholarly journals The Role of Customer Engagement in Islamic Banking

2019 ◽  
Vol 2 (2) ◽  
pp. 123
Author(s):  
Maziyah Mazza Basya
Keyword(s):  
Business Ethic ◽  
Relationship Marketing ◽  
Point Of View ◽  
Customer Engagement ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Islamic Business Ethics

The marketing strategy to be engaged with customer of an Islamic bank must be concerned with its ability to gain a competitive advantage and establish a strong competitive position without neglecting an Islamic business ethic. Customer engagement (CE) in Islamic bank does not take any matter of competing on product and prices, but rather in stressing quality of the services they provide appealing customers conscience. This research attempts to enhance understanding of CE related in its role to increase the quantity and loyalty of Islamic banks customers with the Islamic business ethics point of view. This is a qualitative research that develops customer engagement concept that relevant to be applied in Islamic banking by collecting some of CE theories regarding the CE approach through relationship marketing and analyze them with Islamic business ethic overview. CE in Islamic banking has to be relied with Sharia’s law. The main point of CE in Islamic banking is not only to have a good relationship with the customer and be a brotherhood, but also to reach the Islamic banking purposes.

scholarly journals The Competitiveness Creation Strategy of Islamic Banking

2017 ◽  
Vol 5 (2) ◽  
pp. 29-34
Author(s):  
Laila Refiana Said ◽  
Siti Aliyati Albushairi ◽  
Gusti Rina Fariany
Keyword(s):  
Consumer Satisfaction ◽  
Word Of Mouth ◽  
Islamic Law ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
New Strategy ◽  
Variable Compliance ◽  
Word Of Mouth Communication

Objective - The development of Islamic banks in Indonesia requires a new strategy. The size of the population of Indonesia is a potential market for Islamic banks to target religious and non-religious customers and implement quality innovation to create value-based services to support the competitiveness of regional economies. This may improve the standard and quality of living. Specifically, this study investigated the influence of Islamic banking service quality dimensions to consumer satisfaction, word-of-mouth communication and loyalty. Methodology/Technique - This study was conducted in Banjarmasin, South Kalimantan, which is an Indonesian province that has a fairly a rapid rate of development of Islamic banking. The study focused on 191 people. Data collection was done by observation and interviews using questionnaires. Findings - Using Partial Least Squares, the resultsdemonstrates the effects of variable compliance, empathy, and value proposition quality on overall satisfaction. This showed that overall satisfaction influences word-of-mouth communication and loyalty. This indicates that both the religious market consumers and the floating market consumers desire the establishment of a strong emotional bond between the Islamic bank, customers and shareholders that are developed together in the face of business risks and share profits fairly and honestly, in accordance with the principles of Islamic law. Furthermore, they want employees to be more empathetic and respond individually to customers. Novelty - The study suggest that a strategy be created in relation to competitiveness in Islamic banking in Banjarmasin to improve the quality of service-based value, and to increase the cultivation of religious customers as well as penetrating the floating market segment. Type of Paper - Empirical Keywords: Carter-Item; Floating-Based Market; Islamic Bank; Religious-Based Market; Servqual.

THE FACTORS OF SERVICE, RELIGIOSITY AND KNOWLEDGE IN THE DECISION OF CUSTOMERS TO SAVE FUNDS IN SHARIA BANKS IN YOGYAKARTA CITY

2019 ◽  
Vol 1 (2) ◽  
pp. 13-26
Author(s):  
Mustaqim Pabbajah ◽  
Ratri Nurina Widyanti ◽  
Widi Fajar Widyatmoko
Keyword(s):  
Economic Crisis ◽  
Rapid Development ◽  
Sample Selection ◽  
Positive Influence ◽  
Public Confidence ◽  
Islamic Banks ◽  
Current Trends ◽  
Potential Market ◽  
The World

Islamic banks are experiencing rapid development amid the current global crisis in Indonesia and even in the world. This becomes evidence that Sharia Bank can maintain its existence from all the problems of a complex economic crisis that hit in 2007. Indonesia as the largest Islamic country in the world is a potential market that supports the sustainability of Islamic banking. The Islamic sharia principles in its management, causes many people in Indonesia, especially in Yogyakarta decide to save their funds in Islamic banks. The population in this study is all Islamic bank customers in Yogyakarta, with sample selection using incidental sampling. The data analysis method used is multiple linear regression. This study shows the positive influence of service and public trust in Islamic banks. Similarly, knowledge about Islamic banks, and one's religiosity has an important role in the decision making to save funds in Islamic banks in the city. Islamic labelity and current trends supported by high community religiosity are also important factors in the decision to deposit funds in Islamic banks. In fact, the biggest influence that influences customer's decision to save funds in a bank is the quality of service and trust. Thus, the attention of banking players is needed in improving performance and banking services, so that public confidence is higher in the decision to save funds in the bank. In other words, the community remains consistent to make economic transactions with banks in order to respond to the challenges of the economic crisis in the future.

Pembiayaan Bermasalah Pada Bank Syariah: Strategi Penanganan Dan Penyelesaiannya

2018 ◽  
Vol 6 (2) ◽  
pp. 287-310
Author(s):  
Ubaidillah Ubaidillah
Keyword(s):  
Islamic Law ◽  
Islamic Banks ◽  
Bank Capital ◽  
Significant Development ◽  
Islamic Bank ◽  
Banking Regulations ◽  
Reserve Fund ◽  
Financial Liquidity

Islamic banks in Indonesia are currently experiencing significant development, but this must also be balanced with good banking regulations and management, including handling problematic financing. Problematic financing has an unfavorable impact on Islamic law, the danger of financing problems, namely the non-repayment of financing given in part or in whole. The greater the problematic financing faced by the bank, the lower the level of operational health of the bank, the decrease in the quality of financing and the soundness of the bank affecting financial liquidity and solvency, ultimately affecting the trust of depositors or even prospective customers. The greater the amount of financing problematic, the greater the amount of reserve funds that must be provided, and the greater the bank's responsibility for holding a reserve fund, because the losses borne by the bank will reduce bank capital. The purpose of this paper is intended to be information or even input to Islamic bank academics and practitioners on how to deal with or strategies and also to resolve problematic financing.

Perception and expectation of customers in Islamic bank perspective

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhamad Nadratuzzaman Hosen ◽  
Fitriyani Lathifah ◽  
Ferry Jie
Keyword(s):  
Customer Satisfaction ◽  
Islamic Law ◽  
International Standard Organization ◽  
Basic Knowledge ◽  
Islamic Banks ◽  
It Services ◽  
Banking Services ◽  
Content Type ◽  
Islamic Bank

Purpose The purpose of this paper is as follows: to measure the levels of customer satisfaction, to analyze the gap of values between expectations and perceptions of customers for quality of services and to analyze the factors which should be priority of services in reducing the levels of customer satisfaction at branch office of Bank Muamalat Indonesia (BMI). Design/methodology/approach The study uses to quantitative and qualitative approach to analyze challenges and problems of quality in banking services at BMI based on Islamic perspective.X Findings Overall results show that the levels of customer satisfaction are satisfied. The main items of deduction for customers’ satisfaction are services of access, services of price, interruption of services, sophistication of technology and variety of products. In general findings, Sharia compliance becomes a critical point of services in Islamic banks. The study is only investigation at one Branch of BMI in Depok. Research limitations/implications The implication of this study is a basic knowledge for more details of research with more samples of banks regarding with the quality of banking services. Evaluation of the level of customer satisfaction is very important for BMI to improve services and to develop IT services as well as to certified the ISO (International Standard Organization) and to be built Sharia assurance system. Practical implications The result of this can be used to make a rank of service satisfaction for all Islamic banks in Indonesia. Originality/value This study is to apply combination of CARTER and quality of banking service methods for a Islamic bank. In addition, this study includes Sharia Compliance or Islamic law compliance as a basis for Islamic Contract in operating products of Islamic bank.

scholarly journals ANALISIS LOYALITAS KONSUMEN PERBANKAN SYARIAH DI SUMATERA BARAT

2019 ◽  
Vol 4 (2) ◽  
pp. 165
Author(s):  
RONI ANDESPA ◽  
RANGGA WISANGGARA ◽  
FAZNIL HUSNA S. RASYAD
Keyword(s):  
Customer Loyalty ◽  
Brand Loyalty ◽  
Sampling Method ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Probability Sampling ◽  
Islamic Bank ◽  
West Sumatra ◽  
Convenience Sampling

This study aims to analyze the loyalty of Islamic bank customers in West Sumatra. The object of research is all Islamic banks operating in West Sumatra. The population of this study is all Islamic banking customers in the province of West Sumatra. The research sample is 200 Islamic bank customers. The technique used in sampling is a non probability sampling method using Convenience sampling. The level of customer loyalty can be seen from the level of brand loyalty. In general, customer loyalty to Islamic banks in West Sumatra is very good or loyal. This can be seen from the value of the possibility of brand transfer (ProT) of Islamic banks in West Sumatra is (25.5%) and the Atrition Rate is (3%), these results indicate the percentage of a customer moving to another company, which is obtained from the reduction in the value of ProT with a percentage of non-loyal values

scholarly journals Developing The Quality Of Islamic Corporate Culture On Islamic Bank In Indonesia

2018 ◽  
Vol 3 (1) ◽  
Author(s):  
Muhammad Iqbal Fasa
Keyword(s):  
Sustainable Development ◽  
Financial Institutions ◽  
Corporate Culture ◽  
Financial Institution ◽  
Employee Performance ◽  
Employee Motivation ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Islamic Values

Financial institutions and contemporary business today have been transformed into a sharia-based financial institution and business. However, this change of a new transformation is done systemically by system and not implemented by culture. Thus, despite the growth of Islamic bank is so high, polemics is increasingly unsettled. Based on this, the necessary of transformation of corporate culture has to change based on Islamic values to create sustainable development and competitive advantage. This paper attempts to offer relevant ideas based on Islamic corporate culture. At the end of this paper, the author offers the characteristics of Islamic corporate culture, corporate culture in Islamic bank in Indonesia, and the development of quality of Islamic corporate culture on Islamic bank in Indonesia. This paper concludes that Islamic corporate culture has a major role in increasing employee motivation, employee work ethic, job satisfaction, employee's prestigious behavior and employee performance. Thus, it is important for Islamic banks to develop the quality of corporate culture based on Islamic values. Keywords: Islamic Corporate Culture, Islamic Bank, Sustainable Development

scholarly journals WHAT DETERMINES ISLAMIC PERFORMANCE RATIO OF ISLAMIC BANKING IN INDONESIA? AN ANALYSIS USING FINANCING TO DEPOSIT RATIO AS MODERATOR

2021 ◽  
Vol 10 (1) ◽  
pp. 104
Author(s):  
Lucky Nugroho ◽  
Ahmad Badawi ◽  
Erik Nugraha ◽  
Yananto Mihadi Putra
Keyword(s):  
Performance Indicators ◽  
Theoretical Implication ◽  
Performance Ratio ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Managerial Implication ◽  
Asset Growth ◽  
Spss Software ◽  
Significant Direct Effect

The measurement of Islamic banking performance should differ from the indicators used in their conventional counterparts. Therefore, this study analyzes the performance of Islamic baking in Indonesia using the Islamic Performance Ratio (IPR) variable. Spesifcillay, this study aims to examine the influence of Asset Growth and Non-Performing Financing (NPF) on the IPR using Financing to Deposit Ratio (FDR) as moderator. Data for this study were gathered from seven Islamic Commercial Banks from 2012 to 2018 with 49 observations. They were analyzed using the quantitative approach by employing SPSS software. The findings show that the quality of financing has a negative but significant effect on the IPR. Meanwhile, asset growth does not have a significant direct effect on the IPR. When FDR was inserted as moderator, it showed a significant effect of asset growth on IPR. The theoretical implication of this research shows that Islamic banks' performance is shown from the growth of assets but must be supported by other variables such as the quality of financing (NPF) and must also be accompanied by good financing disbursement capability (FDR). In addition, the managerial implication of this research is that the measurement of indicators for Islamic banks should be equipped with performance indicators under the operational principles of Islamic banks, such as the Islamic Performance Ratio (IPR).======================================================================================================== ABSTRAK – Determinan yang Mempengaruhi Islamic Performance Ratio Perbankan Syariah di Indonesia: Suatu Analisis Menggunakan Financing to Deposit Ratio sebagai Moderator. Pengukuran kinerja perbankan syariah seharusnya menggunakan parameter yang berbeda dari perbankan konvensional. Oleh karena itu, article bertujuan untuk menganalisis kinerja perbankan syariah di Indonesia menggunakan variabel Islamic Performance Ratio (IPR). Secara khusus, artikel ini bermaksud untuk menguji pengaruh variabel pertumbuhan aset dan pembiayaan bermasalah (NPF) terhadap IPR dengan menggunakan Financing to Deposit Ratio (FDR) sebagai variabel moderator. Data-data untuk kajian dikumpulkan dari tujuh bank umum syariah dari 2012 sampai 2018 dengan 49 observasi yang kemudian dianalisis secara kuantitatif dengan software SPSS. Hasil kajian menunjukkan bahwa kualitas pembiayaan memiliki pengaruh negatif tapi signifikan terhadap IPR. Sedangkan pertumbuhan aset tidak berpengaruh signifikan secara langsung terhadap IPR. Ketika FDR dimasukkan sebagai moderasi, pertumbuhan berpengaruh secara signifikan terhadap IPR. Implikasi teoritikal dari penelitian ini menunjukkan bahwa kinerja bank syariah tidak hanya ditunjukkan dari pertumbuhan aset saja, akan tetapi harus didukung dengan variabel lainnya seperti kualitas pembiayaan (NPF) dan juga harus disertai dengan kemampuan penyaluran pembiayaan yang baik (FDR). Selain itu, implikasi manajerial dari penelitian ini adalah pengukuran indikator dari bank syariah sebaknya dilengkapi dengan indikator kinerja yang sesuai dengan prinsip operasional dari bank syariah seperti Islamic Performance Ratio (IPR).

The determinants of the choice of Islamic banks in Tunisia

2016 ◽  
Vol 34 (5) ◽  
pp. 710-730 ◽  
Author(s):  
Moez Ltifi ◽  
Lubica Hikkerova ◽  
Boualem Aliouat ◽  
Jameleddine Gharbi
Keyword(s):  
Financial Institutions ◽  
Demographic Characteristics ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Gender And Age ◽  
Islamic Financial Institutions ◽  
Selection Of

Purpose – The purpose of this paper is to determine the explanatory factors for the selection of Islamic banks and evaluate the moderating role of demographic characteristics. This study seeks to better understand these determinants in Tunisia, a country with a developing Islamic finance system and a culture different from those in other Muslim countries studied in the literature. Design/methodology/approach – The authors developed a two-sided approach: a quantitative survey and 12 semi-structured interviews based on four customer segments identified by the quantitative study. For the survey, data were collected from 180 Islamic bank clients in Tunisia. The factors adopted for the selection of an Islamic bank are service quality, trust, and compliance with Sharia (Islamic) law. The authors identified and measured the selection criteria using a factor analysis, regression analysis, and demographic characteristics analysis. Findings – Customers consider several factors while choosing an Islamic bank: the quality of service offered by the financial institutions, trust, and (especially) compliance with Sharia law. Moreover, gender and age appear to be the only moderators between the selection of an Islamic bank and these determinants. Practical implications – This study offers Islamic banks a better understanding of how Tunisian customers select financial institutions. These banks must consider the different determinants of choice in order to create value for consumers and prepare their marketing strategies. The authors identify four customer segments based on gender and age by which the banks may improve their positioning and market share, thus contributing to the development of Islamic financial institutions in Tunisia. Originality/value – This is the first study of its kind in Tunisia, where the market share of Islamic finance remains low. The study enriches the Islamic marketing literature on the quality of Islamic financial institutions’ service, trust, and compliance with Sharia law. It also tests demographic characteristics as moderators. The results and implications of this research can be applied to countries similar to Tunisia.

A study of Islamic banks in the non-GCC MENA region: evidence from Lebanon

2014 ◽  
Vol 32 (2) ◽  
pp. 130-149 ◽  
Author(s):  
Rima M. Bizri
Keyword(s):  
Sample Size ◽  
Marketing Strategies ◽  
Target Market ◽  
Islamic Banks ◽  
Mena Region ◽  
Content Type ◽  
Islamic Bank ◽  
Five Factors ◽  
The Status

Purpose – This purpose of this paper is to investigate the status of Islamic banking in Lebanon, through addressing the perceptions of existing and potential clients. The study has two objectives: one is to identify and measure the factors that clients perceive as important in deciding to patronize an Islamic bank, and the other is to draw a client profile for Islamic banks operating in Lebanon. Design/methodology/approach – The literature review provided the theoretical framework this study builds on. A survey instrument was developed and the data were analyzed using SPSS (19.0). To draw the client profile, the researcher conducted cluster analysis followed by discriminant analysis. To identify and measure the Islamic bank selection criteria, the researcher used factor analysis followed by regression analysis. Findings – Findings show that clients consider five variables in deciding whether or not to patronize Islamic banks. These variables are trust in Islamic banks and their true compliance with Sharia, customers’ familiarity with Islamic modes of finance, cost of financing and other transactions, accessibility of Islamic banks, and the quality of service offered by those banks. The study was also able to delineate the significant attributes of IB clients, raising the issue of changing the target market segment. Research limitations/implications – This study employed a usable sample size of 199 questionnaires collected from one MENA region nation, Lebanon. It may be useful to probe the research questions of this study using a larger sample size collected from several MENA region nations, in order to reach a more validated conclusion. In addition, it may be equally useful to assess other demographic and psychographic variables as distinguishing factors among client clusters, for the purpose of reaching a deeper understanding of Islamic bank clientele in this region. Practical implications – It is suggested that Islamic banks consider the five factors identified in this study, while preparing their marketing strategy, for the purpose of increasing their market share in the non-GCC MENA region. It is also suggested that Islamic banks approach the so far neglected market segments, rather than sticking to their traditional clients. Originality/value – This paper is the first to investigate the status of Islamic banks in Lebanon. The findings of this study will help refocus the marketing strategies of Islamic banks in Lebanon. They may also apply to other developing non-GCC countries in the MENA region.

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