scholarly journals IMPACT OF ISLAMIC BANKING INCLUSION ON SME EMPLOYMENT GROWTH IN NIGERIA

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Tasiu Tijjani Sabiu ◽  
Muhamad Abduh
Keyword(s):  
Employment Growth ◽  
Banking System ◽  
Islamic Banking ◽  
Positive Effects ◽  
Islamic Bank ◽  
Credit Lines ◽  
Bank Financing ◽  
Quasi Experimental ◽  
The Impact ◽  
Matching Techniques

Despite the considerable resources devoted to SMEs by Islamic banks worldwide, and Nigeria in particular, there has been no rigorous empirical evidence regarding the effectiveness of Islamic banking inclusion on employment growth in SMEs globally. This study fills this gap by analysing the effectiveness of access to Islamic banking financing in promoting MSME's growth in Kano Metropolis, Nigeria. We focus on the impact of the credit lines facilitated by Jaiz Bank Plc in fostering firms’ growth measured in terms of employment. A survey based on a quasi- experimental approach was employed and the data were collected by means of a questionnaire distributed to a sample of 385 MSMEs' beneficiaries and non-beneficiaries of Islamic bank financing in Kano Metropolis, Nigeria. Using difference-in-difference and propensity score matching techniques to deal with selection bias, the study found significant positive effects on MSMEs’ employment growth. In addition, the paper highlights the important role of Islamic bank financing in mitigating the unemployment crisis in Nigeria. The paper recommends that improvement of the Islamic banking system by employing PLS financing, especially Musharaka, could foster MSMEs' financial inclusion and job creation.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

scholarly journals Restructuring and Bank Performance in Dual Banking System

2021 ◽  
Vol 10 (2) ◽  
pp. 223-247
Author(s):  
Raditya Sukmana ◽  
Mansor H Ibrahim
Keyword(s):  
Banking System ◽  
Extensive Study ◽  
Bank Risk ◽  
Bank Performance ◽  
Islamic Banking ◽  
Panel Var ◽  
Bank Competition ◽  
Islamic Bank ◽  
Conventional Banks ◽  
The Impact

While extensive study deals with bank competition and performance relationship, this study pioneers in focusing the existence Islamic bank in the presence of well established conventional banking system in Malaysia. This paper assesses the impact of changing competition landscape and Islamic bank penetration on bank risk, profitability and capitalization.  This study utilizes an unbalanced panel dataset consisting of 37 commercial banks over the period 1997 to 2015. the paper uses a panel VAR methodology to discern the interactions between bank competition and Islamic banking presence on one hand and bank performance on the other hand.Findings: We find evidence supportive of both competition – stability and competition – fragility views for conventional banks. The results suggest that bank competition improves conventional bank risk and, at the same time, lower profitability and capital holdings.  As for Islamic banks, competition seems to robustly influence only bank profitability.  Finally, we note that increasing Islamic bank penetration improves the risk profile of conventional banks and, as expected, reduces their market power.  These results bear important implications on the design of competition policies in a dual banking system as well as on the development of the Islamic banking sector.JEL Classification: C23, G21, G28How to Cite:Sukmana, R., & Ibrahim, M. H.. (2021). Restructuring and Bank Performance in Dual Banking System. Signifikan: Jurnal Ilmu Ekonomi, 10 (2), 223-247. https://doi.org/10.15408/sjie.v10i2.20740. 

scholarly journals The impact of monetary policy on Islamic bank financing: bank-level evidence from Malaysia

2018 ◽  
Vol 23 (46) ◽  
pp. 306-322 ◽  
Author(s):  
Muhamed Zulkhibri
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Banking System ◽  
Bank Lending ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Bank Financing ◽  
Significant Difference ◽  
The Impact

Purpose This paper aims to examine the distributional differences of Islamic bank financing responses to financing rate across bank-specific characteristics in dual banking system. The study also aims to provide understanding of how efficiently Islamic banks perform their roles as suppliers of capital for businesses and entrepreneurs. Design/methodology/approach The study uses panel regression methodology covering all Islamic banks in Malaysia. The study estimates the benchmark model for Islamic bank financing with respect to bank characteristics and monetary policy. Findings The evidence suggests that bank-specific characteristics are important in determining Islamic financing behaviour. The Islamic financing behaviour is consistent with conventional lending behaviour that the Islamic bank financing operates depending on the level of bank size, liquidity and capital. There is no significant difference between Islamic bank financing and conventional bank lending behaviour with respect to changes in monetary policy. Originality/value Many problems and challenges relating to Islamic financing instruments, financial markets and regulations must be addressed and resolved. In practice, it would be a good idea if Islamic banks move away from developing debt-based instruments and concentrate more efforts to develop profit and loss sharing instruments.

scholarly journals HOW DOES ISLAMIC BANKING SUPPORT ECONOMICS GROWTH?

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Mustika Noor Mifrahi ◽  
Achmad Tohirin
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Financial System ◽  
Vital Role ◽  
Islamic Banking ◽  
Positive Role ◽  
Islamic Bank ◽  
Bank Financing ◽  
Analysis Models ◽  
The Impact

Some researchers have argued that the financial system has a vital role in economic growth. Islamic banking that has existed widely in many countries is expected to have a positive role in economic growth. This study aims to examine the impact of Islamic bank financing on economic growth in QISMUT countries. To compare with other full Islamic banking systems, Iran and Sudan also included in this study. By using annual panel data (2005-2015), this paper utilizes an approach to multiple mediating analysis models. The findings demonstrate that Islamic banking financing does not significantly impact economic growth directly. However, Islamic banking financing can possibly influence economic growth indirectly through investment and consumption spending.========================================================================================================Bagaimanakah Peran Perbankan Syariah dalam Pertumbuhan Ekonomi? Beberapa peneliti berpendapat bahwa system keuangan memiliki peran penting dalam pertumbuhan ekonomi. Perbankan Islam yang telah ada secara luas di banyak negara diduga memiliki peran positif dalam pertumbuhan ekonomi. Penelitian ini bertujuan untuk menguji peengaruh pembiayaan bank Islam pada pertumbuhan ekonomi di negara QISMUT. Iran dan Sudan dimasukkan dalam objek penelitian ini sebagai pembanding penggunaan sistem keuangan Islam. Menggunakan data panel tahun 2005-2015, penelitian ini menggunakan pendekatan analisis media dengan banyak faktor. Hasil penelitian menunjukkan bahwa pembiayaan bank Islam tidak dapat mempengaruhi pertumbuhan ekonomi secara langsung. Akan tetapi, Bank Islam dapat mempengaruhi pertumbuhan ekonomi secara tidak langsung, yaitu melaui investasi dan konsumsi.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

Arah Kebijakan Pengawasan terhadap Perbankan Syariah dalam Sistem Perbankan Nasional di Indonesia

2020 ◽  
Vol 3 (1) ◽  
pp. 41-52
Author(s):  
Andrew Shandy Utama
Keyword(s):  
Central Bank ◽  
Financial Services ◽  
Banking System ◽  
Islamic Banking ◽  
Legal Research ◽  
Islamic Bank ◽  
Independent Direction ◽  
National Banking System

This research aims to explain the direction of policy regarding supervision of Islamic banking in the banking system in Indonesia. The method used in this research is normative legal research using the statutory approach. The results of this research explain that the policy regarding supervision of Islamic banking in the national banking system in Indonesia is headed toward an independent direction. In Law Number 7 of 1992 and Law Number 10 of 1998, it is stated that supervision of Islamic banking is done by Bank Indonesia as the central bank. Based on Law Number 21 of 2008, supervision of Islamic banking is strengthened by not only being supervised by Bank Indonesia, but also by the National Sharia Council of the Majelis Ulama Indonesia by placing Sharia Supervisory Councils in each Islamic bank. After the ratification of Law Number 21 of 2011, supervision of Islamic banking moved from Bank Indonesia to an independent institution called the Financial Services Authority.

scholarly journals Analysis of The Influence of Liquidity, Credit and Operational Risk, in Indonesian Islamic Bank’s Financing for The Period 2007-2013

2015 ◽  
Vol 17 (3) ◽  
pp. 279 ◽  
Author(s):  
Ousmane Diallo ◽  
Tettet Fitrijanti ◽  
Nanny Dewi Tanzil
Keyword(s):  
Credit Risk ◽  
Causal Relationship ◽  
Risk Sharing ◽  
Banking Sector ◽  
Panel Data Analysis ◽  
Banking System ◽  
Liquidity Risk ◽  
Operational Risk ◽  
Islamic Banking ◽  
Islamic Bank

The purpose of this paper is to analyze the influence of credit, liquidity and operational risks in six Indonesian’s islamic banking financing products namely mudharabah, musyarakah, murabahah, istishna, ijarah and qardh, in order to try to discover whether or not Indonesian islamic banking is based on the “risk-sharing” system. This paper relies on a fixed effect model test based on the panel data analysis method, focusing on the period from 2007 to 2013. The research is an exploratory and descriptive study of all the Indonesian islamic banks that were operating in 2013. The results of this study show that the Islamic banking system in Indonesia truly has banking products based on “risk-sharing.” We found out that credit, operational and liquidity risks as a whole, have significant influence on mudarabah, musyarakah, murabahah, istishna, ijarah and qardh based financing. There is a correlation between the credit risk and mudarabah based financing, and no causal relationship between the credit risk and musharaka, murabahah, ijarah, istishna and qardh based financing. There is also correlation between the operational risk and mudarabah and murabahah based financing, and no causal relationship between the operational risk and musharaka, istishna, ijarah and qardh based financing. There is correlation between the liquidity risk and istishna based financing, and no causal relationship between the liquidity risk and musharaka, mudarabah, murabahah, ijarah and qardh based financing. A major implication of this study is the fact that there is no causal relationship between the credit risk and musharakah based financing, which is the mode of financing where the islamic bank shares the risk with its clients, but there is an influence of credit risk toward mudarabah mode financing, a financing mode where the Islamic bank bears all the risk. These findings can lead us to conclude that the Indonesian Islamic banking sector is based on the “risk sharing” system.

scholarly journals Agglomeration Externalities and Sectoral Employment Growth in Cities

2016 ◽  
Vol 5 (2) ◽  
pp. 1-15
Author(s):  
Ayse Saime Doner
Keyword(s):  
Employment Growth ◽  
Initial Level ◽  
Regional Growth ◽  
Economic Activities ◽  
Employment Level ◽  
Regional Employment ◽  
Agglomeration Externalities ◽  
Positive Effects ◽  
Economic Development And Growth ◽  
The Impact

Firms benefit some external effects resulting from the concentration of economic activities in certain regions. These effects called “agglomeration economies” or “agglomeration externalities” are mainly divided into three categories – MAR, Jacobs and Porter externalities –, and regarded as the determinant factors of regional economic development and growth. This study analyzes the impact of agglomeration externalities on employment growth using Turkish data of 43 sectors operating in 81 Turkish cities between years 2001 and 2007. OLS regression analyses are repeated for each sector. As far as the MAR externalities are concerned, their impact on employment growth is found negative in 23 sectors while Jacobs externalities have significant and positive effects only on 4 sectors, most of which are from service sectors. As for Porter externalities, they prove to have positive effect on the regional employment growth for 16 sectors. Moreover, urbanization externalities are found to affect the regional growth positively in 4 sectors and negatively in 1 sector. While the impact of the initial level of regional labor supply is found positive, the initial level of regional employment level has negative effect on employment growth. Finally, the share of high education level in cities is found to have almost no effect on regional growth.

scholarly journals Islamic Bank Financing and Its Effects on Economic Growth: A Cross Province Analysis

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Muhammad Anif Afandi ◽  
Muhammad Amin
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Islamic Banking ◽  
Fixed Effects Model ◽  
Islamic Bank ◽  
Bank Financing ◽  
Panel Data Regression ◽  
Data Regression ◽  
Almost All

Islamic banking industry shows a reasonably good development, one of which is marked by an increase in service coverage in almost all provinces in Indonesia. However, the question is how far Islamic banking capable of contributing to the improvement of Indonesia's economic growth? The purpose of this research is to examine the role of Islamic banking in promoting inclusive economic growth with a sample of 33 provinces in Indonesia. The method used in this research is panel data regression using the fixed effects model. The results show that Islamic bank financing does not have an impact on Indonesia's economic growth. In other words, the results of the research provide information that the existence of Islamic banking in Indonesia has not yet give a significant impact on the welfare of Indonesian society

scholarly journals Socio-Economic Effects of Customer Knowledge, Political Support, and Innovation on the Growth of Islamic Banking System; Case Study of Pakistan

2021 ◽  
Author(s):  
Maira Abrar ◽  
Shehla Jabeen ◽  
sohail Abbas
Keyword(s):  
Banking System ◽  
Economic Effects ◽  
Political Support ◽  
Islamic Banking ◽  
Public And Private ◽  
Customer Knowledge ◽  
Islamic Bank ◽  
The Social ◽  
National Bank ◽  
Private Associations

Abstract Islamic banking is the most rising component in the economy for reasonable advancement of Pakistan tributary yet. Despite what might be expected, real impediments that interfere with the developments in Islamic money keeping are client information, political help, and advancement. The Islamic banking and money related segments proceed to develop, and ways incorporates the necessity to make new products. It isn't generally the absence of venture substitutes that urge associations to propose organized items. The examination incorporated the specimen of 100 individuals. Stratified-arbitrary testing method is utilized to deal with both public and private associations workers. A measurable tool named SPSS was utilized to separate the outcome which demonstrates that effect of customer knowledge, political support, and innovative advancement in development of Islamic money keep that might be conclusive. The reasonable advancement has three parts satisfaction incorporated the social equity, monetary soundness, and ecological trustworthiness by development of Islamic banking. It is inferred that Islamic bank could be worldview phenomenon in making the credit. However, national bank should make the product which can viably upgrade Islamic Banking. There is a strong microeconomics ground of Islamic financing for the economy wide conduct of good monetary issues and issues including the procedure structure. Islamic bank clients limit the dangers related with premium based obligation financing, and simple credit, which tormented regular banks amid the sub-prime home loan emergency. Conclusively, general monetary development of Islamic banking in Muslim nations will drive development of Islamic money related administrations, prompting further in Sharia-consistent system.

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