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).

scholarly journals Standard Quality Banking Services of Islamic Banks

2018 ◽  
Vol 8 (1) ◽  
pp. 301
Author(s):  
Haneen A. Al-Khawaja ◽  
Barjoyai Bardai
Keyword(s):  
Islamic Law ◽  
Theoretical Aspect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
High Confidence ◽  
Banking Services ◽  
Standard Quality ◽  
Definition Of

This research discusses in detail the theoretical aspect of the quality standards of banking services of traditional Islamic banks. The criterion of "Shari'ah Compliance" was added by the researcher to the importance and role of dealing with Islamic banks, the definition of this standard and its importance, how to test it for banks as well as how, without the legitimate commitment of these banks to what is classified as Islamic from the foundation, we focus on the importance of the existence of a legal commitment to any Islamic bank to achieve the quality of Islamic banking services of high quality in accordance with Islamic law and laws to achieve a high confidence in the customers who belong to him and deal with his Conspiracy.

Identifying the gaps between customer expectations and perceptions on service quality dimensions of Islamic banks in Malaysia

2015 ◽  
Vol 7 (4) ◽  
pp. 424-441 ◽  
Author(s):  
Rafikul Islam ◽  
Selim Ahmed ◽  
Dzuljastri Abdul Razak
Keyword(s):  
Service Quality ◽  
Age Groups ◽  
Educational Background ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Customer Expectations ◽  
Banking Service ◽  
Significant Difference

Purpose – This paper aims to identify the gaps and differences between customer expectations and perceptions on service quality of Islamic banks in Malaysia based on six dimensions of service quality, namely, reliability, responsiveness, assurance, empathy, tangibles and Islamic Shari’ah compliance. Design/methodology/approach – This study surveyed 179 customers who have first-hand experience with Islamic banking services in Malaysia. The research data were analysed using reliability analysis, independent samples t-test and one-way analysis of variance. Findings – The results indicated that customers’ perceptions failed to meet their expectations on the service quality of Islamic banks in Malaysia. The results also indicated that those customers (respondents) aged below 30 years have higher expectations on empathy from the Islamic banking service compared to other age groups. However, there is no significant difference between customer expectations and perceptions of Islamic banking service quality based on educational background and occupation. Research limitations/implications – This research focused solely on Islamic banks in Malaysia and thus the results might not be applicable for other conventional banks. Originality/value – The findings are expected to provide guidelines for enhancing the satisfaction level of clients of the Islamic banking system in Malaysia and other countries.

scholarly journals Analisis Kinerja Keuangan Bank Umum Syariah di Indonesia berdasarkan Islamicity Performance Index Periode 2015-2019

2021 ◽  
Vol 3 (2) ◽  
pp. 230-253
Author(s):  
Fakhry Hafiyyan Kurniawan ◽  
A. Jajang W. Mahri ◽  
Rumaisah Azizah Al Adawiyah
Keyword(s):  
Performance Measurement ◽  
Performance Index ◽  
Descriptive Analysis ◽  
Profit Sharing ◽  
Commercial Banking ◽  
Performance Ratio ◽  
Measurement Tool ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Average Value

Islamic Commercial Banking in Indonesia generally has not fully carry out business activities in accordance with sharia provisions. Therefore, there is a need for a performance measurement tool that is able to express spiritual and social values embodied in Islamic banks. The purpose of this study is to describe the performance of Islamic banking based on Islamicity Performance Index. This research is a quantitative research using descriptive analysis. The data used in this research is secondary data. The study population was Islamic banks in Indonesia during the period 2015-2019, with a sample of twelve banks. Sampling was done by using purposive sampling method. The results showed Panin Dubai Sharia Bank was the best bank in the Profit Sharing Ratio (PSR) indicator. The value of Zakat Performance Ratio (ZPR) in Islamic banking in Indonesia is still low. BNI Sharia is the bank with the highest average value for the ZPR indicator. Equitable Distribution Ratio (EDR) indicates that Mandiri Sharia Bank has the highest average value. Directors-Employees Welfare Ratio (DEWR) shows that BTPN Sharia have fairly high levels of disparity between directors and employees. IIR and IsIR shows  that in general Islamic commercial banks in Indonesia have carried out businesss performance in the halal sector. Meanwhile, overall, it received a satisfactory predicate. This research is expected to be taken into consideration for the related institutions to apply the performance measurement of Islamic Commercial Banking in accordance with the concept of Islamicity Performance Index, and be taken into consideration in taking policy measures in accordance with the concept of sharia that will be used in the future.  

Islamic Banking in Malaysia†

2012 ◽  
Vol 40 (1-2) ◽  
pp. 191-201 ◽  
Author(s):  
Sherin Kunhibava
Keyword(s):  
Central Bank ◽  
Islamic Law ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Average Growth ◽  
Governance Framework ◽  
Finance Industry ◽  
Asset Growth ◽  
The 1960S ◽  
Shariah Governance

AbstractIslamic banking is the conduct of banking according to Shariah or Islamic law. Statistically Islamic banking has had phenomenal growth, according to the Asian Banker Research Group, the world's 100 largest Islamic banks have set an annual asset growth rate of 26.7% and the global Islamic finance industry is experiencing an average growth of 15-20% annually1. Recently the Prime Minister of Malaysia commented that Malaysia has been maintaining its leadership in Islamic banking and finance for over three decades2. As an International leader in Islamic banking, it would be interesting to explore the development of Islamic banking in Malaysia. This will be the objective of this paper. This paper will focus on the historical development of Islamic banking in Malaysia, from the creation of the Haj Pilgrim's Fund Board in the 1960s to the current Islamic banking scene of 17 local Islamic banks and five International Islamic banks in operation. This paper will also explore the unique regulatory and governance framework of Islamic banking in Malaysia, by touching on the Islamic banking Act 1983, the Central Bank of Malaysia Act 2009, the Banking and Financial Institutions Act 1989 and the Shariah Governance Framework introduced in 2011 by the Central Bank of Malaysia. This paper will also briefly introduce how Islamic banking works.

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 Islamic Banking Selection Criteria: Case in Indonesia Using Analytic Network Process

2019 ◽  
Vol 10 (1) ◽  
pp. 165
Author(s):  
Aam Slamet Rusydiana ◽  
Fatin Fadhilah Hasib
Keyword(s):  
Analytic Network Process ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Analytical Network Process ◽  
Network Process ◽  
Conventional Banks ◽  
Bank Marketing ◽  
And Behavior ◽  
Selection Of

<p>The Islamic banking industry is currently one of the main indicators of the development of Islamic economics in Indonesia. In Islamic banking issue, one of the important issues is related to people's preferences and behavior towards Islamic banks. The study of the criteria for selecting a bank has been the concern of many bank marketing researchers. Compared to conventional, such studies are relatively minimal, especially in Indonesia. This study tries to analyze the preferences and behavior of criteria for selection of Islamic banks in Indonesia through the Analytical Network Process (ANP) approach.The results conclude that the most priority criteria that influence the selection of Islamic banks in Indonesia are service factors and religiosity factors or the suitability of banks with sharia principles. Therefore, Islamic banks need to constantly improve the quality of services both services and products so that they can compete with conventional banks.</p><p>Industri perbankan syariah saat ini merupakan salah satu indikator utama perkembangan ekonomi Islam di Indonesia. Dalam masalah perbankan syariah, salah satu masalah penting adalah terkait dengan preferensi dan perilaku pemilihan masyarakat terhadap bank syariah. Studi tentang kriteria pemilihan bank syariah telah menjadi perhatian banyak peneliti. Studi tersebut relatif minimal jika dibandingkan dengan bank konvensional, terutama di Indonesia. Penelitian ini mencoba menganalisis preferensi dan perilaku pemilihan kriteria bank syariah di Indonesia melalui pendekatan Analytical Network Process (ANP). Hasilnya menyimpulkan bahwa kriteria yang paling prioritas yang mempengaruhi nasabah dalam memilih bank syariah di Indonesia adalah faktor layanan dan faktor religiusitas atau kesesuaian bank dengan prinsip syariah. Oleh karena itu, bank syariah perlu terus meningkatkan kualitas layanan baik produk maupun jasa sehingga mereka dapat bersaing dengan bank konvensional.</p>

scholarly journals COMPARISON OF ISLAMIC BANKING PERFORMANCE IN INDONESIA, PAKISTAN, AND BANGLADESH: SHARIA MAQASHID INDEX APPROACH

2021 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Mohammad Nur Rianto Al Arif ◽  
Dede Yati
Keyword(s):  
Performance Indicators ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Index Approach ◽  
And Performance ◽  
Conventional Banks ◽  
The One ◽  
Islamic Values ◽  
One Way Anova

There is a different characteristic between Islamic banks and conventional banks, so Islamic banks must have performance measures based on Islamic values in them. This study aims to measure the performance of Islamic banks in three countries - Bangladesh, Indonesia, and Pakistan - using the Sharia Maqashid Index. Also, this study examined whether there were differences in Sharia Maqashid Islamic bank indexes in the three countries using the one-way ANOVA test. The results of the study, in general, showed that the Al-Arafah Islamic Bank of Bangladesh received the highest score, followed by Bank of BNIS and Bank of BRIS. Besides, the results of the study also showed that there were differences in performance. This result implies that Islamic banks should use the maqashid sharia framework as a benchmark for their objective and performance indicators.========================================================================================================ABSTRAK – Perbandingan Kinerja Perbankan Syariah di Indonesia, Pakistan, dan Bangladesh: Pendekatan Indeks Maqashid Syariah. Terdapat perbedaan karakteristik antara bank syariah dan bank konvensional, sehingga ukuran kinerja bank syariah harus didasarkan pada nilai-nilai syariah yang terdapat di dalamnya. Penelitian ini bertujuan untuk mengukur kinerja bank syariah di tiga negara yaitu Bangladesh, Indonesia, dan Pakistan dengan menggunakan Sharia Maqashid Index. Selain itu, penelitian ini juga menguji apakah ada perbedaan indeks bank syariah Maqashid Syariah di tiga negara dengan menggunakan uji one-way ANOVA. Hasil penelitian secara umum menunjukkan bahwa Bank Islam Al-Arafah Bangladesh memperoleh skor tertinggi, disusul oleh Bank BNIS dan Bank BRIS. Selain itu, hasil penelitian juga menunjukkan adanya perbedaan kinerja di tiga negara tersebut. Hasil ini menyiratkan bahwa bank syariah harus menggunakan kerangka maqashid syariah sebagai tolok ukur tujuan dan indikator kinerjanya.

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 Islamic Banking, Asset Quality: “Does Financing Segmentation Matters” (Indonesia Evidence)

2018 ◽  
Vol 9 (5) ◽  
pp. 221-235 ◽  
Author(s):  
Lucky Nugroho ◽  
Nurul Hidayah ◽  
Ahmad Badawi
Keyword(s):  
Financial Stability ◽  
Quantitative Method ◽  
Statistical Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Statistical Tool ◽  
Segmentation Strategy ◽  
Regression Test ◽  
Asset Quality

Abstract Bank stability becomes one of the crucial pillars in maintaining economic growth. Therefore, the segmentation strategy is needed because it aims to improve the financial stability of the bank (decrease Non-Performing Loan-NPL / Non-Performing Financing-NPF). This study aims to determine the effect of segmentation on the quality of Islamic banks proxied with NPF. The method used is a quantitative method with multiple regression test and statistical tool Stata version 13. From the results of statistical data, it is known that the retail segment has a more significant influence than the wholesale segment, which is 92.61% and 56.05%. Therefore, sharia banks should have their business priorities in the retail segment, especially business in the microfinance segment by maintaining the quality of financing through selective financing channeling.

PENGARUH JUMLAH DANA PIHAK KETIGA (DPK) NON PERFOMING FINANCING (NPF) DAN SERTIFIKAT BANK INDONESIA SYARI’AH (SBIS) TERHADAP PENYALURAN PEMBIAYAAN PERBANKAN SYARI’AH DI INDONESIA

2019 ◽  
Vol 2 (2) ◽  
pp. 1-21
Author(s):  
Arif Rijal Anshori
Keyword(s):  
Statistical Tests ◽  
Secondary Data ◽  
Third Party ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Public ◽  
Normality Test ◽  
Source Data ◽  
Scientific Truth

Banking is a very important part in the economy, one of them as intermediary institutions whose duty to collect funds from the public and then channel them back in the form of financing.This study aims to determine the effect Number of DPK, NPF and SBIS partially to finance portfolio of Islamic banking in Indonesia, and to determine the effect Number of DPK, NPF and SBIS simultaneously to the finance portfolio of Islamic banking in Indonesia.This study proceed from the assumption that (1) the size distribution of the funds offered by Islamic banks is very influenced by the size DPK means that the higher the number of third-party funds collected, the higher also finance portfolio, (2) the higher non-performing financing the worse the quality of banking assets, (3) the higher the bonus level set SBIS Indonesian bank will lower the financing undertaken by the banking Shari'ah. But based on data from Islamic banking statistics from the years 2008-2014 there is a gap between theory and facts on the ground. These assumptions are tested empirically so that the truth can be scientifically recognized. When there is a justification or rejection of these assumptions, then this is a scientific truth that can be considered Islamic banking in Indonesia.Quantitative research methods in this study using research formats explanation, source data used in this research is secondary data, then the type of data used in this research is quantitative data time series, the quarterly data of financing, deposits, NPF and SBIS Islamic banking in Indonesia from 2008 to 2014. Data were then processed by means of statistical analysis using Eviews 7, which comprises the classical assumption of them: normality test, heteroscedasticity, multicollinearity test, autocorrelation test. statistical tests include: regression, t test, F test and R2.The conclusion that can be drawn from this study that partially, DPK variable is positive and significant effect on the financing, NPF variable is negative but not significant effect on the financing, while SBIS is negative and significant effect on the financing. Then simultaneously the number of DPK, NPF and SBIS significant effect on the distribution of funding. Those variables could explain freely by 99.45% and the remaining 0.55% can be explained by other variables not examined.

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