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.

Legal obstacles in establishing Islamic banking in Maldives

2016 ◽  
Vol 10 (1) ◽  
pp. 40
Author(s):  
Aishath Muneeza ◽  
Ismail Wisham
Keyword(s):  
Central Bank ◽  
Banking System ◽  
Political Support ◽  
Economic Resources ◽  
Islamic Banking ◽  
Muslim Country ◽  
Small Problem ◽  
Islamic Bank ◽  
Frame Work ◽  
Set Up

<p class="Style2">Maldives is a hundred percent Muslim country. Though the laws in Maldives are influenced by common law and civil law systems, the spirit of the laws are based on Islamic principles. However, when it comcs to the banking system, it is poignant to state here that the only known banking system to the country is based on conventional or usury friendly system. Up until now there are only six banks operating in the country. And none of them is an Islamic bank. It has been frequently questioned on why it is so difficult to set up an Islamic Bank in a hundred percent Muslim country? People say that the demand is there, so what is there to worry? But the truth is that the challenges we face are more than what any one could think of. As rightly pointed out, the demand for Islamic banking is there. But what about the legal infrastructure, political support and the economic resources which are needed to invest to convert the banking system? Lack of human resources in the country is also not a small problem. And political instability has exacerbated the situation. In the past years, there have been several failed attempts made to introduce the Islamic banking system to the country. But due to lack of proper legal frame work in the country and some other financial reasons Islamic banking were never introduced. Now finally we see a green signal from the Central Bank of Maldives for establishment of Islamic bank. Towards the end of last year the Central Bank of Maldives have announced public to apply for jobs designed for the Islamic bank which is intend to be open soon! The main purpose of this paper is to look at the obstacles in introducing Islamic banking in Maldives. The challenges it is facing and the ways to curb it. It is argued here that as a Muslim nation establishment of</p>

scholarly journals The Legal Conundrum Of Non-Interest Banking. A Case Study Of Islamic Bank In Nigeria.

2019 ◽  
Vol 7 (07) ◽  
Author(s):  
Miebaka Nabiebu ◽  
Michael Takim Otu
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Legal Framework ◽  
Islamic Banking ◽  
Religious Leaders ◽  
Development Fund ◽  
National Assembly ◽  
Islamic Bank ◽  
The Social ◽  
Heated Debate

The issuance of license to Jaiz bank plc as the first full-flesh Islamic bank in Nigeria to carry on Non-interest banking has generated heated debate among scholars, jurist, religious leaders and public commentators in Nigeria. Chiefly among these debate borders on the constitutionality of Non-interest (Islamic) banking in Nigeria; whether or not Islamic banking is established with the aim of Islamizing the entire Nigeria and whether or not it is meant to discriminate against Non-Muslims in Nigeria. Consequently, this work seek to appraise the legal conundrum or constitutionality of Islamic banking in Nigeria with a view to ascertaining whether or not Islamic banking is meant to Islamize Nigeria or it is meant to discriminate against non-Muslims. However the outcome of this research article shows that Islamic (Non- interest) banking is constitutional and is not meant to discriminate against Non- Muslims or Islamize Non-Muslims. Rather with the practice of dual banking (interest and non interest banking) in Nigeria, Nigerians would have the advantage of having different credit choices, the Nigerian banking sector would be more competitive thus enhance quality services, creation of more employment opportunities and would give the Nigerian government the opportunity to secure non-interest loan from Islamic development fund available globally to finance infrastructural projects. This work further concludes that the major challenge this banking system is facing in Nigeria is lack of adequate awareness about the operation of the banking system and lack of robust legal framework to adequately regulate the system. It is therefore suggested that a more comprehensive legal framework should be enacted by the Nigerian National Assembly to appropriately regulate the non-interest banking sector as well as creation of more awareness about the operation of the system through the social media, town hall meetings, newspapers and radio commentaries.

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 QUALITY OF SHARIA GOVERNANCE STRUCTURE ON SOCIAL PERFORMANCE IN INDONESIAN ISLAMIC BANKING

2020 ◽  
Vol 4 (1) ◽  
pp. 57-61
Author(s):  
Lia Dahlia Iryani ◽  
Bambang Wahyudiono
Keyword(s):  
Audit Committee ◽  
Social Performance ◽  
Supervisory Board ◽  
Secondary Data ◽  
Governance Structure ◽  
Islamic Banking ◽  
Financial Report ◽  
Islamic Bank ◽  
A Value ◽  
The Social

This research aimed to examine empirically the effect of the performance of Islamic Bank on sharia governance in Indonesia. The social performance of the Islamic Bank was measured by qordhul hasan and micro finance, and sharia governance (SG) was measured by the proportion of the independent board of commissioners, board size, audit committee and sharia supervisory board. The data in this study were secondary data from Islamic Banking Financial Report (IBFR) of 2012-2016. This research applied quantitative approach with the panels of data regression using E-views 9.0 software. Data analysis was conducted by using factor analysis. The test result showed that the direct effect of SG on performance was 0.323 significant because it had a value of t count of 11.96 or a value of probability of (0,000) &#60; alpha 5%. The positive coefficient showed that SG was able to improve performance while the highest loading values that reflected SG (TKS) was X3 (number of KA members) of 0.934, and X4 (number of KA meetings in a year) of 0.880. The loading value of X5 was the number of DPS of 0.445 while the value of loading X2 (the number of DK meetings in 1 year) was 0.319

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 Global Financial Crisis of Islamic and Conventional Banking in Middle East – A Case Study in Turkey

2017 ◽  
Vol 9 (8) ◽  
pp. 239
Author(s):  
Ayman Abdal-Majeed Ahmad Al-Smadi ◽  
Mahmoud Khalid Almsafir ◽  
Muzamri Bin Mukthar
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Secondary Data ◽  
Islamic Banking ◽  
The Social ◽  
The Global Financial Crisis ◽  
The Impact

The financial tools all over the world become extremely decisive in these days. The main goal of this paper is to measure then to discuss the impact of performance of conventional and Islamic banking in Turkey during the financial crisis. some variables such as profitability, liquidity, operational efficiency and business growth are used as a measuring factor to determine the performance for both financial models. The period of study is taken during the financial crisis in 1997 and during the global financial crisis in 2007. The comparison in this study is made between the performances of Islamic banking  and conventional banking in Turkey.Some secondary data had examines in this study which was drown from the annual report from one of Turkey bank since 2002 until 2013. SPSS (Statistical Package for the Social Sciences) “18.0” has been used to compare between Islamic finance model and other model. The findings of this paper shows that Islamic financial system is performing superior than conventional financial system for the period of this study. Hence, it can be concluded that the system of Islamic banking is able to sustain and compete with the conventional banking system especially during any financial crisis.

scholarly journals The influence of religiosity and self-efficacy on the saving behavior of the Іslamic banks.

2018 ◽  
Author(s):  
anton priyo nugroho
Keyword(s):  
Self Efficacy ◽  
External Validity ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Population ◽  
Future Studies ◽  
Islamic Bank ◽  
The World ◽  
Saving Behavior

Indonesia is a country with the largest Muslim population in the world. However, since the Islamic banks were being established in Indonesia for about 20 years, their market share only accounts for about 5% in the Indonesian banking system. Muslim participations in using Islamic bank are relatively low. This study expands the Theory of Planned Behavior by adding the variables of religiosity and self-efficacy. Previous studies have not examined this new expanded model to analyze customers who participated in using the saving Islamic bank’s products and services. Based on 220 Islamic bank consumers who participated in the study, the study indicated that questionnaires about religiosity and self-efficacy had good external validity and could be adapted for the Indonesian culture context. The most interesting finding was that the religiosity variable strongly enhanced the use of Islamic banks. Similarly, this study found that the self-efficacy variable improved an intention of customers to participate in the Islamic banking system. This paper also discusses the implications of the findings and recommendations for future studies.

Establishment of Zakat Bank

2021 ◽  
pp. 78-94
Author(s):  
Hakimah Yaacob ◽  
Adli Yaacob ◽  
Khairul Hidayatullah Basir ◽  
Qaisar Ali
Keyword(s):  
World Bank ◽  
Banking System ◽  
Financial System ◽  
Islamic Banking ◽  
Islamic Bank ◽  
The World Bank ◽  
Library Research ◽  
Proposed Model ◽  
The World

When the Islamic bank was first established in 1963, they realised leveraging on the conventional platform was an easy way out to create an Islamic banking system. Despite of financial outcry, multiplications, and lack of welfare on the customers, the bank continues championing the financial system. Behaving as an alternative to the conventional financing, Islamic banking is no different. With all the conventional guidelines and controlled regulations of IMF and the World Bank, the Islamic bank's hands are tied. Nothing much has been done to ensure a complete move out to assist customers in getting ‘good financing facility,' which is humane in nature. This chapter is an attempt to explore Zakat Bank out of banking furore using a Zakat platform. The finding suggests that the establishment of Zakat Bank is crucial to ensure the true financing based on Shariah principles and guidelines. This chapter adopts library research including reports and guidelines from the financial regulators. The chapter concludes with a proposed model for a Zakat Bank for authority's consideration.

PENERAPAN AKAD MURABAHAH TERHADAP PRODUK PEMBIAYAAN KPR iB BAROKAH DI BANK JATIM SYARIAH CABANG KEDIRI

2021 ◽  
Vol 5 (2) ◽  
Author(s):  
NISRINA FAJARRIA NADA
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Financial Sector ◽  
Islamic Banking ◽  
Islamic Bank ◽  
Financing Mechanism

The development of islamic banking in indonesia is a manifestation of the public’s demand for an alternative banking system which in addition to providing sound banking or financial services and also complies with sharia principles. In economic develoment activities, the financial sector is one of most important sectors in the success of an achievement in the indonesian economy. One of which is the kediri branch of the islamic bank of East Java, which provides financing for people who want to have a house namely the KPR IB Barokah financing. Kpr Ib barokah is short, medium or long-term finance the purchase of residential houses (consumptive) and renovation,both new and used ind developer and non – developer environments, in accordance with sharia principles and the contracts used are murabahah,IMBT and MMQ contracts. The formulation of the problem is about how the financing mechanism for Kpr Ib Barokah and whether the murabahah contract in Kpr Ib Barokah is in accordance with sharia principles.Key word: Islamic banking, KPR Financing,Murabahah

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