scholarly journals Are We Alive When Islamic Banks Dominate?: Case Study In Indonesia

2016 ◽  
Vol 5 (3) ◽  
Author(s):  
Raditya Sukmana ◽  
Heri Kusworo
Keyword(s):  
Market Share ◽  
Time Series Data ◽  
Series Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Market Shares ◽  
Banking Market ◽  
Double Exponential Smoothing ◽  
And Performance

Islam promotes justice in every aspect of life including in banking and finance. Shariah has to be the foundation for any banking transactions to ensure that any single party is not being unfairly treated or exploited. Interest based bank is certainly create unfairness and exploitation. In any cases only single party which get a lot of benefit. Hence islamic banking industry need to be developed so that its market share will increase significantly until it can reach the domination of the national banking assets. This paper aims to forecast when such condition will occur. Adopting a popular forecasting tool such as double exponential smoothing, this study will inform us when islamic banking market share will reach 50% out of total banking asset. The monthly data examined starts from January 2004 to may 2011. We use a single time series data which is islamic banking market shares whereby it is calculated from the islamic banking asset divided by total banking asset. the structure of this paper is as follows: after the introduction which describe the history and performance of Indonesian islamic bank, it discusses about the data and method used in this paper. Next section is on the description and analysis on the result obtained. Lastly is the conclusion where it recommends some policies required from the obtained result in which the optimist scenario would say that the domination of Islamic banks may occur in our grandchild generation

scholarly journals DETERMINANTS OF SHARIA BANKING MARKET SHARE GROWTH IN INDONESIA

2020 ◽  
Vol 1 (2) ◽  
pp. 87
Author(s):  
Nizar Hosfaikoni Hadi ◽  
Muh. Khairul Fatihin
Keyword(s):  
Interest Rates ◽  
Market Share ◽  
Financial Services ◽  
Research Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Profit Rate ◽  
Banking Market ◽  
Banking Markets ◽  
Default Rate

AbstractThe purpose of this paper is to investigate the variables that influence Islamic banking markets in Indonesia. The research data were obtained directly from the website of the Central Statistics Agency (BPS) and the financial services authority(OJK) from 2011-2018 which were taken on a quarterly basis. This study uses multiple regression analysis to analyze the factors that have an impact on the market share of Islamic banks in Indonesia. The variable that can affect Islamic banking marketshare in Indonesia is the liquidity ratio (FDR). While other variables such as the default rate (NPF), profit rate (ROA), economic growth (GDP) and conventional bank interest rates (INT) do not affect Islamic banking. The results suggest that Islamic banking regulates liquidity ratios (FDR) so that Islamic banking can effectively increase its market. This study complements previous research so that Islamic banking maintains a liquidity ratio in order to remain balanced.Keywords: marketshare, Islamic banking, FDR, GDP, ROA

KONDISI EKONOMI SYARIAH DI INDONESIA PASCA MERGERNYA BANK SYARIAH BUMN

2021 ◽  
Vol 5 (1) ◽  
pp. 90-106
Author(s):  
Angga Syahputra
Keyword(s):  
Market Share ◽  
Financial Services ◽  
Qualitative Method ◽  
Economic Conditions ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Population ◽  
Banking Market ◽  
The World ◽  
Financial Transactions

Indonesia has the largest Muslim population in the world. With this amount, of course, it should be a capital for economic strength. However, as of November 2020, data released by the Financial Services Authority put the Islamic banking market share at 6.33%. Efforts to merge the three state-owned Sharia banks into Indonesian Sharia Banks are expected to increase the penetration of the sharia economy in Indonesia, which is still far behind when compared to conventional domestic economic movements and Islamic financial transactions in other countries. This research will describe the extent of the sharia economic conditions in Indonesia after the merger of state-owned sharia banks into BSI. This study uses a qualitative method with a type of literature review research which is obtained from various authentic sources such as books, articles, journals and trusted websites. There was a 2.7% increase in the market share of Islamic banks after the merger. This increase when compared to the existing potential and the market is still very small. However, it is hoped that this impact will continue to increase over time, especially as capital support for various financial sectors and the halal industry in the country.

scholarly journals ASSESSMENT ON THE ISLAMIC BANKING MARKET SHARE PROJECTION BY BANK INDONESIA AND PROPOSED METHODS

2015 ◽  
Vol 1 (1) ◽  
pp. 107-133
Author(s):  
Raditya Sukmana ◽  
Heri Kuswanto
Keyword(s):  
Market Share ◽  
Banking Industry ◽  
Projection Methods ◽  
Government Support ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Role Of Government ◽  
National Budget ◽  
Islamic Bank ◽  
Banking Market

Indonesian Islamic banking market share projected by Bank Indonesia is an integral part in developing the industry in the country. By setting a projection which will then be used as a benchmark / target, Islamic banks can make a necessary program to attract new customers which eventually increase its asset. If the increase of the asset is significant,the Islamic bank market share may increase. The problem is that the current projection by Bank Indonesia seems to be off target. It means that the projection is pretty much above the actual value. This paper attempts to utilize two projection methods namely Spline and Auto-ARIMA which we think can provide a better result. This study uses the monthly data covering period since January 2006 until December 2012. The result shows that our projections, especially using Spline method, are closer to the actual value of the Islamic banking industry market share. It means that the gap between the projection and the actual value of market share is lesser than the gap on the Bank Indonesia calculation. Moreover, this study argue that, the projection of the Islamic banking market share made by BI will not be achieved unless with government support. So far, government has not made any policy which deposit some of the national budget in the Islamic bank. This study calculates that if government regularly depositing 1% of total National Government Budget in Islamic banks, the projection of Islamic banking market share made by BI will be acheived. As a conclusion, the role of government is very significant in developing the Islamic banking industry in Indonesia.Keywords: Market share Islamic Bank, Spline, Auto-ArimaJEL Classification: E44, E47

scholarly journals The Effect of Financing on Credit Risk: Empirically on Indonesian Islamic Banking

2021 ◽  
Vol 5 (1) ◽  
pp. 503
Author(s):  
Fitri Zaelina ◽  
Dwi Nastiti
Keyword(s):  
Time Series Data ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Series Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Public ◽  
Analysis Techniques ◽  
Independent Variables ◽  
Financing Risk

Islamic banking has an important role in the economy, especially in moving the real sector. Islamic banking provides funding to the public in the form of financing. The financing provided cannot be separated from various risks that can threaten the health of the bank, one of which is financing risk. For that, the purpose of this study is to analyze the effect of financing on financing risk in Islamic banks for the period 2015 to 2020. The method used in this study is quantitative with multiple linear regression analysis techniques. This study uses time-series data and the variables in this study are mudharabah, musyarakah, murabahah, ijarah financing, and total assets as independent variables and NPF as a dependent variable. The results of the study concluded that total assets had a negative and significant effect on NPF and murabahah financing had a positive and significant effect on NPF. Meanwhile, mudharabah, musyarakah, and ijarah financing has no significant effect on NPF.

COD(COMMUNITY ORGINIZING DEVELOPMENT): OPTIMALISASI MIKRO FINANCING BANK UMUM SYARIAH (BUS) DI INDONESIA DALAM PENGEMBANGAN STARTUP BUSINESS (UMKM)

2017 ◽  
Vol 4 (2) ◽  
pp. 237-262
Author(s):  
Apri Suhartanto
Keyword(s):  
Market Share ◽  
Secondary Data ◽  
Islamic Banking ◽  
Positive Trend ◽  
Islamic Banks ◽  
Financial Industry ◽  
Financial Service Authority ◽  
Banking Market ◽  
Persistence Factors ◽  
Conventional Bank

Industri keungan syariah dari tahun ketahun menunjukan tren yang sangat positif. OJK merilis market share perbankan syariah diangka 5%. Salah satu faktor bertahannya perbankan syariah adalah produk pembiayaan. Pembiayaan sebagai jantung dari suatu perbankan. Dan pembiayaan mikro menjadi andalan perbankan dalam menjamah nasabah sampai kepada pelosok desa. Namun, masih kurangnya pendampingan yang dilakukan Bank Umum Syariah menjadikan pembiayaan ini diujung tanduk. Penelitian ini bertujuan untuk menganalisa bagaimana optimalisasi pembiayaan mikro di bank umum syariah dalam pengembangan bisnis UMKM nasabah mikro. Penelitian ini merupakan jenis penulisan deskriptif dengan pendekatan kualitatif. Adapun jenis data yang digunakan dalam penelitian ini adalah data sekunder. Teknik pengumpulan data dalam penelitian ini yaitu dengan menggunakan studi pustaka dan dokumenter.Hasil dan pembahasan adalah dengan melakukan teknik COD (Community Orginizing Development) yaitu adanya mentoring bisnis yang dilakukanoleh perbankan syariah itu sendiri atau dengan lembaga mitra bank umum syariah kepada nasabah pembiayaan mikro. Sharia financial industry shows a very positive trend from year to year. FSA (Financial Service Authority) has released Islamic banking market share of 5%. One of the persistence factors of Islamic banking is financing products, which is the heart of banking, and microfinance becomes a mainstay in serving its customer in the countryside. However, the lack of mentoring run by sharia division of convensional banks has made it not well developed. This study was aimed at analyzing the optimization of micro-financing in syaria division of conventional bank in the business development of SMEs micro customers. This is a descriptive qualitative research and the data used in this research were secondary data. Data were collected through literary and documentary study. This research found that the optimalization of micro financing in Islamic banks was done through COD (Organizing Community Development), i.e., the business mentoring done by the Islamic banking itself or by a partner institution of syaria division of conventional bank to microfinance customers.

scholarly journals An Empirical Study on Corporate Governance and Islamic Bank Performance

2016 ◽  
Vol 5 (4) ◽  
pp. 01-09
Author(s):  
Sarwar Uddin Ahmed ◽  
Wali Ullah ◽  
Samiul Parvez Ahmed ◽  
Ashikur Rahman
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Time Series Data ◽  
Stock Exchange ◽  
Series Data ◽  
Islamic Banks ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
The Relationship

Corporate governance refers to the relationship present between the corporation and the stakeholders that determines and controls the strategic direction and performance of the corporation. Good corporate governance should provide adequate incentives for the board and management to pursue objectives that are in the interests of the company and shareholders, thereby encouraging firms to use resources more efficiently. However, the definition of accountability differs between conventional and Islamic Banks. Islam was made accountable not only to stakeholders, but also to Allah, the ultimate owner and authority. These powerful moral ethics help in promoting fair, just and honest business dealing. The aim of this study is to examine the relationship between corporate governance structures and the resultant financial performance of listed Islamic banks of Dhaka Stock Exchange (DSE) in Bangladesh. The panel time series data were collected for the time period of 6 years (2009-2014) from all the listed Islamic banks to run an Ordinary Least Squared (OLS) regression model to examine whether the existing corporate governance mechanisms as well as several other internal and external indicators are significant in influencing the financial performance. Preliminary findings suggest corporate governance mechanisms in Islamic banks are not quite as strong as they should be, hinting at possible market and management inefficiencies.

scholarly journals Development Of Small Medium Entreprise With External, Internal, And Religiosity Factors In Islamic Banks

KINERJA ◽  
2017 ◽  
Vol 21 (1) ◽  
pp. 17
Author(s):  
Roikhan Mochamad Aziz
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Small And Medium Enterprises ◽  
Third Party ◽  
Series Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Independent Variables ◽  
Medium Enterprises ◽  
Positive Effect

The purpose of this research is to analyze the influence of external, internal and religiosity variable that proxies to inflation, Bank Indonesia Certificate Sharia (SBIS), Non Performing Financing (NPF) and Third Party Fund (DPK) to Small and Medium Enterprises Financing in the Islamic Bank in Indonesia. The data is used Time Series data periods of January: 2011 – March: 2016 from Statistic Banking of Indonesia by analyzed of Multiple Linear Regression and Hahslm method. The results of this research indicate that the variable Inflation, Bank Indonesia Sharia Certificate (SBIS), Non Performing Financing (NPF) and Third Party Fund (DPK) have partially influence to Small and Medium Enterprises Financing. This is showed by the value of Adjusted R Square of 60,7% while the remaining 39,3% influence by other factors. In this research showed Inflation, Non Performing Financing (NPF) and Third Party Fund (DPK) have a significantly and positive effect on the Small and Medium Enterprises Financing. Meanwhile, Bank Indonesia Sharia Certificate (SBIS) has no significantly effect on Small and Medium Enterprises Financing. Simultaneously, the overall independent variables have a significant influence to Small and Medium Enterprises Financing.Keywords: Inflation, SBIS, NPF, Islamic Banking.

scholarly journals Motives Behind the Transfer of a Bank From Conventional Banking to Islamic Banking in Pakistan

2021 ◽  
Vol 3 (2) ◽  
pp. 193-202
Author(s):  
MUHAMMAD ASIF ◽  
UMAIR AHMED ◽  
MUHAMMAD ZAHID ◽  
AMIR KHAN
Keyword(s):  
Data Collection ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Risk And Return ◽  
Independent Variables ◽  
Banking And Finance ◽  
World Economic ◽  
And Performance ◽  
Shari’A Compliance ◽  
Customer Need

The increasing awareness on Islamic banking and finance has created a huge demand for Shari’a based or Shari’a compliant products. Banks, especially are trying to capture this huge market by either converting themselves into a full fledge Islamic banks or opening a window for the Islamic based transactions. This study highlights the reasons why traditional banks turned towards Islamic model. The phenomenon of traditional banks turning into Islamic form was reinforced by the success of these banks averting the recent world economic crises. For data collection 80 respondents were selected, a proxy of five variables were undertaken as measurement. Variables of the study were:Transfer to Islamic Banking(TIB) was taken as dependent variable whileShari’a compliance(SC), Risk and Return(RR), Customer need(CN) and Performance of Islamic banks(PI) were taken as independent variables for which adopted questionnairewas used for data collection. The result of this research is that the banks are transferring from conventional banking to Islamic banking is just because of Shari’a Compliance, performance of Islamic banks and customer need for Islamic product.

scholarly journals Market Share Bank Syariah Terhadap Institusi Keuangan Syariah di Indonesia

2021 ◽  
Vol 8 (1) ◽  
pp. 75
Author(s):  
Moh. Adenan ◽  
Ghaluh Hermawati Safitri ◽  
Lilis Yuliati
Keyword(s):  
Mutual Funds ◽  
Market Share ◽  
Capital Market ◽  
Time Series Data ◽  
Financial Institution ◽  
Series Data ◽  
Islamic Banking ◽  
Vector Error Correction ◽  
Insignificant Effect ◽  
Demand Deposits

Sharia banking is a sharia financial institution that is considered to have contributed to the national economy. Judging from the value of the market share owned by Islamic banking, it is still relatively low compared to Malaysia. This study aims to determine the effect of Islamic capital market products and Islamic banking on the market share of Islamic banking assets in Indonesia. The Islamic capital market products used are in the form of Islamic stocks, corporate sukuk and Islamic mutual funds. Meanwhile, in Islamic banking, there are Islamic demand deposits, Islamic savings and Islamic deposits. Empirically the focus of this research is using monthly time series data from January 2014 to December 2019. This study uses the Vector Error Correction Model (VECM) analysis method. The estimation results of this study indicate that in the long term, corporate sukuk, sharia demand deposits and Islamic savings have a positive and significant effect on the market share of Islamic banking assets in Indonesia. Meanwhile, Islamic mutual funds and Islamic deposits have a negative and significant effect. Meanwhile, Islamic stocks have a negative and insignificant effect on the market share of Islamic banking assets in Indonesia. On the other hand, in the short term only Islamic deposits have a positive and significant effect. Corporate sukuk has a positive and insignificant effect, while Islamic stocks, Islamic mutual funds, Islamic demand deposits and Islamic savings have a negative and insignificant effect on the market share of Islamic banking assets in Indonesia.

scholarly journals The Effect Of Debt-Based Financing And Equity-Based Financing On Islamic Banks Profitability In Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 106
Author(s):  
Rofiul Wahyudi ◽  
Aulia Arifatu Diniyya ◽  
Julia Noermawati Eka Satyarini ◽  
Lu’liyatul Mutmainah ◽  
Sri Maulida
Keyword(s):  
Panel Data ◽  
Time Series Data ◽  
Random Effect ◽  
Series Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Common Effect ◽  
Analysis Technique ◽  
Conceptual Aspect ◽  
Conventional Banks

This study's main objective is to investigate equity-based financing and debt-based financing of the profitability of Islamic banking in Indonesia. This research is expected to contribute to the theoretical and practical dimensions. On the conceptual aspect, this study can provide evidence of whether equity-based financing and debt-based financing affect the profitability of Islamic banking. While on the practical dimension, Islamic banks in Indonesia can determine the extent of their profitability and, in turn, the competitiveness of Islamic banks to enable it to be developed in line or even better than conventional banks. The data analysis technique uses panel data regression, which is time series data and cross-section. Next, to estimate the panel data model, which is divided into three, namely: common effect, fixed effect, and random effect. The result of this study that partially equity-based financing does not affect ROE. At the same time, debt-based financing influences the ROE of Islamic banks. Partially equity-based financing and debt-based financing do not affect ROA of Islamic banks. However, it simultaneously shows that the independent variable test results, namely equity-based financing and debt-based financing, have a strong influence on the dependent variable, namely, profitability as measured by ROA and ROE.

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