CUSTOMER’S AWARENESS TOWARDS THE ISLAMIC BANKING SYSTEM Case Study on Selected Banking in Duhok City- Kurdistan Region

Islamic banking system (IBS) is one of these sectors that affect the economy and it works with free interest rate. This study investigates the level of customer’s awareness toward IBS. The study was conducted on the two Islamic Banks only in Duhok city- Kurdistan Region. The data were collected using structured questionnaire and the sampling was random. Descriptive statistics and Statistical Package Social Science (SPSS V.20) were used to analyze the participants’ responses. The results indicated that customers of Cihan Islamic bank - Duhok and Kurdistan International Bank for Investment and Development are not fully aware of Islamic banking system. Therefore, the study suggests that for Islamic banks to remain active and competitive they need to develop quality-service level in order to supersede the conventional banking standards, invest in new products and services and also develop an effective communication plan by advertising and marketing in order to achieve Islamic customer needs and demands.

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Factors Influencing Customers Loyalty Towards Islamic Banking: A Case Study in Gombak, Selangor

Jurnal Intelek ◽

10.24191/ji.v15i1.263 ◽

2020 ◽

Vol 15 (1) ◽

pp. 11-20

Author(s):

Farhan Lukman Rahman ◽

Wan Mohd Farid Wan Zakaria ◽

Wan Muhd Faez Wan Ibrahim ◽

Syed Khusairi Tuan Azam ◽

Mohd Hafizan Musa

Keyword(s):

Islamic Law ◽

Banking System ◽

Islamic Banking ◽

Islamic Banks ◽

Basic Principles ◽

Independent Variables ◽

Customer's Loyalty ◽

Industry Needs ◽

Structured Questionnaire

The Islamic banking system governs two (2) basic principles which are mutual sharing of profit or loss and the prohibition of the collection and payment of interest. These basic principles are important to the establishment of an Islamic bank. Islamic law prohibits any activities that involve interest, gambling and speculative. Having great competition with foreign and conventional bank, Islamic banking industry needs variety of services and products to be offered to attract customers which is in compliance with shariah law. Thus, the main objective of this study is to examine the factors that influence customer’s loyalty towards Islamic banking. The independent variables include shariah compliant, product quality, service quality, and convenience. This study is conducted using structured questionnaire and were personally administrated across 303 respondents in Gombak, Selangor. This study is significantly important for the industry to find out the explanations and motive of customer’s loyalty in Islamic banks. Eventually, it will help the industry to establish a better services and products for the customers.

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The Effect of Profit Sharing Financing and Receivables towards Total Assets in Islamic Banking: Case Study in BNI Syariah

UNIMAS Review of Accounting and Finance ◽

10.33736/uraf.3101.2021 ◽

2021 ◽

Vol 5 (1) ◽

pp. 28-40

Author(s):

Zulfikar Hasan

Keyword(s):

Main Product ◽

Banking System ◽

Revenue Sharing ◽

Profit Sharing ◽

Islamic Banking ◽

Islamic Banks ◽

For Profit ◽

New Knowledge ◽

The Relationship

The objective of my research is to observe at the relationship between receivables, profit-sharing financing to total assets at BNI Syariah Bank from 2016-2020. Total assets in BNI Syariah frequently endure fluctuations in total assets each year, whether receivables and profit-sharing financing have a significant effect on variable Y (total assets). The method that researchers run is a quantitative method using the help of SPPS software, while the variables that influence are the dependent variable receivables and profit-sharing financing. The funding channelled by BNI Syariah is essentially the same as other Islamic banks in Indonesia. Because it still uses an agreement that has long practised in the Islamic banking system, such as the Murabaha contract for the provision of receivables, Mudharabah and Musyarakah contracts for profit sharing between customers and banks. The relationship between Receivables and Revenue Sharing Financing has a positive correlation between variables. This research can also provide some connection between Murabahah and Musharaka which are one of the main product sources of BNI Syariah bank. The originality of the research that the researcher makes is his own, it is not copied and that the researcher's research idea is new and can add new knowledge.

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Purification of Non-Halal Income in Malaysian Islamic Banks: An Overview (Penyucian Pendapatan Tidak-Halal Di Bank-Bank Islam Malaysia: Satu Tinjauan)

Journal of Islam in Asia (E-ISSN: 2289-8077) ◽

10.31436/jia.v14i2.616 ◽

2017 ◽

Vol 14 (2) ◽

pp. 305-326

Author(s):

Saidatolakma bt Mohd Yunus ◽

Sayed Sikandar Al Haneef ◽

Zuraidah Kamaruddin ◽

Mek Wok Mahmud

Keyword(s):

Special Reference ◽

Banking System ◽

Financial Impact ◽

Islamic Banking ◽

Islamic Banks ◽

Total Income

Abstract Purification of non-halal income (NHI) is the process of deducting non-halal or tainted income deemed unacceptable by Shairaah from the total income generated in Islamic banks. It is undeniable that Shariaah non-compliance events still occur in Islamic banking system considering the fact that Islamic banks have not been able to fully comply with the requirements of Shariaah in their transactions, operations and financial activities. The realization of Shariaah non-compliance events in Islamic banks in some situations involve a financial impact which leads to NHI. All NHI identified must be purified since Islam does not allow any non-halal income to be held, kept and utilized for their own benefits. This paper will give a new insight on purification of NHI by first delineating the concept of mal haram in Islam as well as the Shariaah non-compliant events realized in the banks, with special reference to cases involving Islamic banks in Malaysia. Keywords: Islamic banking, non-halal income, purification, charity, waqf. Abstrak Penyucian pendapatan tidak halal (NHI) adalah proses memisahkan pendapatan tidak halal menurut Syari'ah daripada jumlah keseluruhan pendapatan yang dihasilkan oleh bank Islam. Tidak dapat dinafikan bahawa masih berlaku ketidakpatuhan Syariah dalam sistem perbankan Islam. Ini adalah kerana bank Islam tidak dapat mematuhi sepenuhnya keperluan Syariah dalam transaksi, operasi dan kegiatan kewangan mereka. Kewujudan perkara yang tidak mematuhi Syariah di bank Islam dapat memberi kesan kepada status kewangan yang boleh membawa kepada berlakunya pendapatan haram. Pendapatan tidak halal yang sudah dikenalpasti mesti disucikan kerana Islam tidak membenarkan apa-apa pendapatan tidak halal disimpan dan digunakan untuk faedah mereka sendiri. Kajian ini memberi pandangan baru tentang penyucian pendapatan tidak halal dengan membincangkan konsep harta haram dalam Islam serta perkara-perkara yang tidak patuh syariah yang berlaku di bank-bank Islam di Malaysia. Kata Kunci: Perbankan Islam, pendapatan tidak-halal, Penyucian, Amal, wakaf.

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ISLAMIC BANKING AND INVESTMENT FINANCING: A CASE OF ISLAMIC BANKING IN KENYA

International Journal of Finance ◽

10.47941/ijf.42 ◽

2017 ◽

Vol 2 (1) ◽

pp. 66

Author(s):

Abbas Said Abubakar ◽

Dr. Josiah Aduda

Keyword(s):

Real Estate ◽

Motor Vehicle ◽

Survey Design ◽

Banking System ◽

Islamic Banking ◽

Islamic Banks ◽

Investment Financing ◽

Trade Financing ◽

Real Estate Financing ◽

Sme Financing

Purpose: The purpose of this study was to establish the effect of Islamic banking on investment financing in Islamic banks in Kenya.Methodology: This study employed descriptive survey design. The population of this research consisted of 8 commercial banks offering Shariah compliant products. The study used secondary data for the period 2009 to 2012. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results were presented in frequency tables and figures. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings indicated that there were various Islamic banking products that Islamic banks used to finance their investments. This included motor vehicle financing, mortgage financing, asset financing, real estate financing, trade financing and SME financing. The study also indicated that there were various modes of financing used by Islamic banking such as profit and loss sharing, Ijara and murahaba. Regression results revealed that motor vehicle financing was statistically significant in explaining loans advanced to customers in Islamic banks. However mortgage financing, asset financing, real estate financing, trade financing and SME financing were not statistically significant in explaining loans advanced to customers in Islamic banks but they were positively correlated.Unique contribution to theory, practice and policy: The study recommends that the management of the banks to get well equipped and competent employees on Islamic banking products as most Islamic banks are currently managed by people who have been educated and trained in the conventional banking system. Thus, more time may be required for the unique characteristics of Islamic financial instruments to be completely accepted and understood by both bank personnel and customers. It is also recommended that the terms and conditions of acquiring a loan be made more appealing and considerate for more investors to approach the banks for assistance as the Shari`ah restricts the type of businesses for which Islamic banks can provide financing.

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Determinant of Customers’ Intention to Use Islamic Banking (Case Study in Jayapura City)

IKONOMIKA ◽

10.24042/febi.v5i2.5937 ◽

2020 ◽

Vol 5 (1) ◽

pp. 55-70

Author(s):

Ira Eka Pratiwi (IAIN Fattahul Muluk Papua, Indonesia) ◽

Fachrudin Fiqri Affandy (IAIN Fattahul Muluk Papua, Indonesia) ◽

Abdul Karman (IAIN Fattahul Muluk Papua, Indonesia)

Keyword(s):

Social Influence ◽

Reliability And Validity ◽

Internal Consistency Reliability ◽

Capital City ◽

Islamic Banking ◽

Intention To Use ◽

Face To Face ◽

Dependent Variables ◽

Structured Questionnaire

This study investigates the influence of faith, social influence, regulation, and bank functions on the intention to use Islamic banking. The study used quantitative method and the data was collected using a structured questionnaire. The sample consisted of 200 customers of one of the largest Islamic bank in Indonesia: Bank Mandiri Syariah, which is located in Jayapura, the capital city of Papua Province. The data were obtained by random sampling using through a face-to-face survey. The internal consistency reliability and validity test indicated that all scale items were proven reliable and valid. The multiple regression linear was used to analyze the influence of independent variables toward dependent variables. This study suggested that faith significantly affected the customers intention to use Islamic banking. Meanwhile, social influence, regulation, and bank functions did not show a significant influence on customers’ intention to use Islamic banking.Key words : Islamic Banking; Faith; Social Influence; Regulation; Bank Function

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Perkembangan Bank Syariah PAsca UU 21 Tahun 2008

Al-Tahrir Jurnal Pemikiran Islam ◽

10.21154/al-tahrir.v12i1.46 ◽

2012 ◽

Vol 12 (1) ◽

pp. 43

Author(s):

Luhur Prasetiyo

Keyword(s):

Banking System ◽

Islamic Banking ◽

Islamic Banks ◽

Core System ◽

Over Time

Islamic banking system still grows continuously over time in various countries, including Indonesia. Although it was a bit late, if it was compared to another, Islamic banking system began to develop in Indonesia in the early 1990’s. At that time, Islamic banking, however, was still running with its all characteristics based on the rule without adequate law. Islamic banking began to be recognized legally as the legalization of UU Perbankan 1992, and it was followed by its deregulation in 1998, and Islamic banking in Indonesia finally got its full legality after legalization of UU Perbankan Syariah in 2008. UU Perbankan Syariah as a new law certainly has significance for the development of Islamic banking in Indonesia. Based on the BI statistics, Islamic banks, especially Bank Umum Syariah after legalization of UU Perbankan Syariah, has been growing significantly, among in the number of banks, total assets, and total financing. Unfortunately, the growth of PLS (profit and loss sharing) doesn’t occupy a significant position in total financing of Islamic banks, whereas PLS is core system in Islamic banking.

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Indeks Kinerja Perbankan Syariah di Asia Tenggara Berdasarkan Konsep Maqâshid al-Syarî`ah

MADANIA JURNAL KAJIAN KEISLAMAN ◽

10.29300/madania.v22i1.782 ◽

2018 ◽

Vol 22 (1) ◽

pp. 33

Author(s):

Herni Ali HT ◽

Ali Rama

Keyword(s):

Southeast Asia ◽

Case Studies ◽

Performance Index ◽

Banking System ◽

Islamic Banking ◽

Islamic Banks ◽

Brunei Darussalam ◽

Indexing Method ◽

Low Performance ◽

Individual Education

Abstract: Sharia Banking Performance Index in Southeast Asia Based on the Concept of Maqâshid al-Syarî`ah. Islamic banks as a banking system that carries out Islamic vision in the field of finance and economics should develop a method of measuring performance in accordance with its vision. The vision of Islamic banks can be derived from the vision that chills reversed from the laws of sharia which is called maqâshid al-syarî`ah. Therefore, this study intends to develop methods of measuring the performance of Islamic banking based on the skill maqâshid al-syarî`ah. The maqâshid al-syarî`ah index is an index based on the three main visions of sharia banks, namely individual education (ta’dîb al-fard), justice enforcement (iqâmah al`adl) and welfare encouragement (jalb al-maslâhah). From the vision (dimension) is derived into indicators that are relevant and measurable. This research uses indexing method in calculating maqâshid al-syarî`ah index with case studies of sharia banking that has been operating in Southeast Asia covering Indonesia, Malaysia, Brunei Darussalam, Singapore, Thailand and Philippines. This tudy found that the majority of sharia banks in Southeast Asia have a low-performance maqâshid al-syarî`ah index. This shows that sharia banking is generally still run based on conventional vision even though it has operated in accordance with sharia principles or sharia compliance.

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Pola dan Perkembangan Perbankan Syariah di Indonesia

Istidlal: Jurnal Ekonomi dan Hukum Islam ◽

10.35316/istidlal.v3i1.127 ◽

2019 ◽

Vol 3 (1) ◽

pp. 34-41

Author(s):

Ahmad Khoirin Andi

Keyword(s):

Financial Institutions ◽

Banking System ◽

Supervisory Board ◽

Islamic Banking ◽

Islamic Banks

The development of Islamic banking in Indonesia with the complexity of the problem in its journey has shown good results and as a reference for the pattern and strategy for developing financial institutions. Islamic banking with its (the) sharia principles of avoiding usury practices and prioritizing mutual benefits have proven to be a complete banking system. But besides that, additional supervision is needed to ensure the implementation of sharia principles, namely by the existence of a sharia supervisory board (DPS) to implement fatwas as guidelines for the operation of Islamic banks issued by the National Sharia Council (DSN).

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EVALUATION OF DUAL BANKING SYSTEM IN BANKING IN INDONESIA

ISLAMICONOMIC Jurnal Ekonomi Islam ◽

10.32678/ijei.v11i2.158 ◽

2020 ◽

Vol 11 (2) ◽

Author(s):

Amanatun Nisfah Nurun Nikmah ◽

Tulus Suryanto ◽

Surono Surono

Keyword(s):

Financial Stability ◽

Banking System ◽

Islamic Banking ◽

Islamic Banks ◽

Common Goal ◽

The Face ◽

Capital Access ◽

Conventional Banks ◽

Banking Institution ◽

Negative Factors

Evaluation of Dual Banking System in Indonesia. Dual Banking System is the application of two banking systems in one banking institution, namely conventional banking and Islamic banking. Indonesia can optimize the dual banking system through strength share and weakness cover, namely Islamic banks are generally superior in terms of a more stable system in the face of market changes but have deficiencies in infrastructure, whereas conventional banks have large market and capital access and more infrastructure complete, but very vulnerable to crises due to the negative factors of economic integration which are already very strong. The superiority of the dual banking system concept is seen in two separate systems that operationally do not affect each other, but have one common goal, namely financial stability that supports economic growth. So, to achieve this goal the two systems can work together in external factors such as access to capital, infrastructure, supervision or clearing systems that can help interbank liquidity.

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ISLAMIC CORPORATE IDENTITY IN THE PRACTICE OF ANNUAL REPORT DISCLOSURE ISLAMIC BANK

Assets Jurnal Akuntansi dan Pendidikan ◽

10.25273/jap.v1i1.538 ◽

2012 ◽

Vol 1 (1) ◽

pp. 34

Author(s):

Ratih Paramitasari

Keyword(s):

National Economy ◽

Annual Report ◽

Banking System ◽

Corporate Identity ◽

Annual Reports ◽

Islamic Banking ◽

Reporting Standards ◽

Islamic Banks ◽

Islamic Financial Institutions ◽

The Ideal

The development of Islamic banking is directed to provide great benefit to society and contribute optimally to the national economy. Islamic banking system and conventional banking system together synergistically supports the mobilization of public funds broadly improve the ability of finance to sectors of national economy. Together with the development of Islamic banking industry in Indonesia, there are many controversies from the community, where most problems highlighted are sticking the label of syariah in Islamic financial institutions are still considered not feasible. Based to these problems, researchers want to conduct this research on the suitability of the annual report disclosure practices of Islamic banks in Indonesia to the reporting standards that reflect the ideal of Islamic Corporate Identity.This study using a checklist for the data analysis consisting of the five themes and the eight dimensions that are should be disclosed in annual reports of Islamic banks. From the results of the assessment aspect of the checklist is then poured in the index EII (ethical identity index). From the calculation of EII, it can be seen that the annual report disclosure practices syariah banks for 2007, 2008, and 2009, has approached the ideal reporting standards that reflect the Islamic Corporate Identity.

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