scholarly journals PATRONAGE OF ISLAMIC AND CONVENTIONAL BANKS: THE CASE OF SYRIA

2019 ◽  
Vol 3 (2) ◽  
pp. 98
Author(s):  
Khaled Nour Aldeen ◽  
Syed Alamdar Ali Shah ◽  
Sri Herianingrum
Keyword(s):  
Customer Service ◽  
Phenomenological Approach ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Structured Interviews ◽  
Informative Advertising ◽  
Service Operation ◽  
Customer Perspective ◽  
Conventional Banks ◽  
Damascus City

The aim of this study is to understand perception of conventional banks’ customers towards Islamic banking by examining their level of awareness about Islamic banking. The qualitative approach was used in the form of semi-structured interviews under the phenomenological approach in Damascus city. The main findings of this research are customers lack awareness of Islamic banking operations. Furthermore, Islamic banks’ stuff play a crucial rule to enhance awareness and willingness towards their services. This study revealed that an informative advertising campaign is highly recommended to raise the awareness level among Syrians towards Islamic banking. Moreover, Islamic banks should be more selective especially when they recruit customer service operation staff. This research is a pioneering attempt towards Islamic banking issues in the case of Syria from a customer perspective. It contributes to the Syrian perceptions towards Islamic banking literature.

scholarly journals Credit Management in Full-Fledged Islamic Bank and Islamic Banking Window: Towards Achieving Maqasid Al-Shariah

2020 ◽  
Vol 11 (3) ◽  
pp. 92
Author(s):  
Najihah Muhammad ◽  
Sharifah Faigah Syed Alwi ◽  
Nabihah Muhammad
Keyword(s):  
Commercial Banks ◽  
Qualitative Methodology ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Structured Interviews ◽  
Credit Management ◽  
Islamic Bank ◽  
Management Procedures ◽  
Management Plans ◽  
Conventional Banks

The percentage of non-performing loans (NPL) and non-performance financing (NPF) in Malaysia commercial banks is under control and does not increase in its percentage since the year 2014 to 2016. These scenarios are the result of the stringent credit management procedures in the commercial banks which if not properly followed could affect banks’ profitability and liquidity. However, there are critics by the public on how Islamic banks normally tend to punish their customers who are the real traders or businessman without fixed monthly income when they slightly late in paying their periodical payment for the bank’s facility or financing. Islamic bank is supposed to help the customer in order for it to achieve maqasid al-Shariah (objectives of Shariah). Thus, this study intends to compare the credit management’s procedure in one of the full-fledged Islamic banks and one of the conventional banks which also offer Islamic banking window. This study also aims to identify the achievement of maqasid al-Shariah through the procedures of credit management in the two banks. This study adopted the qualitative methodology where semi-structured interviews are conducted with 2 bankers from one of the full-fledged Islamic banks and one of the conventional banks which also offer Islamic banking window. Results from this study indicated that each banks has their own strategies and procedures with regard to credit management. Their credit management plans were structured to help customers to secure their loans, financing and assets as well as protecting them from bankruptcy and insolvency which basically comply with maqasid al-Shariah. From this study, it is recommended for commercial banks to apply a strict approval process for loan and financing as well as a strict credit monitoring system to avoid NPL and NPF.

Is Islamic bank profitability driven by same forces as conventional banks?

2016 ◽  
Vol 9 (1) ◽  
pp. 46-66 ◽  
Author(s):  
Hajer Zarrouk ◽  
Khoutem Ben Jedidia ◽  
Mouna Moualhi
Keyword(s):  
Dynamic Panel Data ◽  
Islamic Banking ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Mena Region ◽  
Bank Profitability ◽  
Content Type ◽  
Large Sample ◽  
Islamic Bank ◽  
Conventional Banks

Purpose The purpose of this paper is to ascertain whether Islamic bank profitability is driven by same forces as those driving conventional banking in the Middle East and North Africa (MENA) region. Distinguished by its principles in conformity with sharia, Islamic banking is different from conventional banking, which is likely to affect profitability. Design/methodology/approach The paper builds on a dynamic panel data model to identify the banks’ specific determinants and the macroeconomic factors influencing the profitability of a large sample of 51 Islamic banks operating in the MENA region from 1994 to 2012. The system-generalized method of moment estimators are applied. Findings The findings reveal that profitability is positively affected by banks’ cost-effectiveness, asset quality and level of capitalization. The results also indicate that non-financing activities allow Islamic banks to earn higher profits. Islamic banks perform better in environments where the gross domestic product and investment are high. There is evidence of several elements of similarities between determinants of the profitability for Islamic and conventional banks. The inflation rate, however, is negatively associated with Islamic bank profitability. Practical Implications The authors conclude that profitability determinants did not differ significantly between Islamic and conventional banks. Many factors are deemed the same in explaining the profitability of conventional as well as Islamic banks. The findings reported in the current paper might be of interest for policy makers. It is recommended to better implement non-financing activities to improve Islamic bank profitability. Originality/value Unlike the previous empirical research, this empirical investigation assesses the issue whether Islamic banks profitability is influenced by same factors as conventional model. It enriches the literature in this regard by considering the specificities of Islamic banking to identify the determinants of profitability. Moreover, this study considers a large sample (51 Islamic banks) through a different selection of countries/banks than previous studies. In addition, the period of study considers the subprime crisis insofar it ranges from 1994 to 2012. Hence, this broader study allows the authors to draw more consistent conclusions.

scholarly journals Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

2016 ◽  
Vol 8 (11) ◽  
pp. 193 ◽  
Author(s):  
Arfianti Novita Anwar
Keyword(s):  
Secondary Data ◽  
Rank Test ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
The Law ◽  
Conventional Banks

<p>This study aims to analyze the performance of Islamic banks and conventional banks before and after the implementation of Islamic Banking Act 2008. The performance will be measured using CAMEL ratio selected. This research is considered essential in examining the positive contribution of the application of the Act to improve the performance of Islamic banks in Indonesia. By using secondary data, this study compared the performance of Islamic banks with that conventional bank selected as samples during the study period. Data were analyzed using the Wilcoxon Signed Rank Test for inter-temporal and Mann-Whitney test for inter-bank. Inter-temporal Tests conducted on Islamic Banking showed that a significant difference was only seen in the NPF ratio of 2 years before and after implementation of Islamic Banking Act. As for conventional banks showed a more diverse ie for 1 year before and after the application of the Law on Islamic Banking there are significant differences for the ROA and ROE, two years before and after implementation of the Law Islamic banking there are significant differences for the CAR, ROA, ROE and NIM and for the overall test a significant difference to CAR, ROA, ROE, NIM and efficiency. Inter-bank testing showed that prior to the application of Islamic Banking Act there are significant differences between conventional banks and Islamic banks to CAR, ROA and efficiency. Furthermore, after the application of Islamic Banking Act there is a significant difference for the CAR and LDR / FDR.</p>

scholarly journals Customer Perception Regarding Car Loans in Islamic and Conventional Banking

2012 ◽  
Vol 2 (6) ◽  
pp. 174
Author(s):  
M. Taimoor Hassan ◽  
Mehtab Ahmed ◽  
Muhammad Imran ◽  
Azhar Naeem ◽  
Mudassir Waheed ◽  
...  
Keyword(s):  
Key Words ◽  
Statistical Technique ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Chi Square ◽  
Customer Perception ◽  
Conventional Banks ◽  
Corporate Customers

Purpose: To see the customer perception regarding car loans in Islamic and conventional banking. Methodologies: This study is based on primary data. These followed by only Bahawalpur corporate customers are taken as the sample research. Firstly the persons have been identified of the selected banks that are the financial affairs of those banks. When these people show their willingness then questionnaire has been filled by them and the required data has been collected. The statistical technique chi-square had been adapted for analysis the data. Findings: Total 120 questionnaires have been distributed among different banks and out of which 104 were get completed and returned. Peoples prefer conventional banks for car loans as compared to Islamic banks.   Key Words: Islamic Banking, Corporate Customer, Car Financing.

scholarly journals Pricing Linkage between Islamic Banking and Conventional Banking: The Case of Bangladesh

2016 ◽  
Vol 3 (4) ◽  
pp. 84
Author(s):  
Sarwar Uddin Ahmed ◽  
Ashikur Rahman ◽  
Samuel Parvez Ahmed ◽  
G M Wali Ullah
Keyword(s):  
Profit Sharing ◽  
Islamic Banking ◽  
Specific Rate ◽  
Islamic Banks ◽  
Loss Mechanism ◽  
Monthly Data ◽  
For Profit ◽  
Significant Difference ◽  
Conventional Banks ◽  
The Relationship

<p><em>Islamic banking is based on profit and loss mechanism where the use of interest is prohibited.  Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing.  However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits.  On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship was inconclusive, and requires further analysis.</em></p>

scholarly journals Pengaruh Religiositas terhadap Minat Mahasiswa Menabung di Bank Syariah

2021 ◽  
Vol 4 (1) ◽  
pp. 25-35
Author(s):  
Peni Darmisah ◽  
Saiin Saiin
Keyword(s):  
Data Analysis ◽  
Educational Background ◽  
Regression Method ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Remote Areas ◽  
Conventional Banks ◽  
Simple Regression

As students who have an educational background in Islamic Economics, each has a different perception of Islamic Banking. There are still students who compare Islamic banks and conventional banks, a doubt toward the operational saving system, financing or discounting, and the existence of conventional Banks being more affordable than Islamic banks in remote areas. This study aimed to examine the effect of religiosity on students' interest in saving in Islamic banks. This type of research was quantitative with data analysis using a simple regression method. The results showed that the t count was 14,832, and the t table was 1,975 < t count 14,832 with a significance of 0.000 under 0.05. Therefore, it concluded that religiosity significantly affects the saving interest of students at Islamic Banks.

scholarly journals ISLAMIC BANKING PERFORMANCE MEASUREMENT: A CONCEPTUAL REVIEW OF TWO DECADES

2021 ◽  
Vol 5 (1) ◽  
pp. 16-33
Author(s):  
Elyanti Rosmanidar ◽  
Abu Azam Al Hadi ◽  
Muhamad Ahsan
Keyword(s):  
Financial Performance ◽  
Intellectual Capital ◽  
Social Performance ◽  
Meta Analysis ◽  
Jel Classification ◽  
Research Trend ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Past ◽  
Conventional Banks

This article aims to provide an overview of the development of research on the measurement of Islamic banking performance over the past 20 years from 89 selected papers with Scopus-indexed journals ranked Q4 to Q1 or accredited with Sinta 2 to Sinta 1. This study used a qual-quantitative meta-analysis approach using the Mendeley citation application. The distribution of the topic and the depth of research in paper samples based on keywords in publications were analyzed using the VOSviewer application. The results of the analysis showed that the research trend of Islamic banking performance in reputable journals is increasing in recent years. Most of the studies performed in the last two decades have focused on the practice and corporate governance of Islamic banks and comparisons between Islamic and conventional banks based on financial performance ratios and aspect of maqasid al-Shariah; Only a few studies that discuss efficiency, social performance on Islamic banks, regulation, intellectual capital and stability of the financial performance of Islamic banks were found. The further discussion is an empirical exposure without theoretical exploration or analysis which is supposed to become the direction of banking research in the future.  JEL Classification Codes: G21, L25, P17, P47.

scholarly journals EVALUATION OF DUAL BANKING SYSTEM IN BANKING IN INDONESIA

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.

scholarly journals KIAI AND ISLAMIC BANK (The Typology of Kiai Based on Their Perception and Behaviour toward Islamic Bank)

1970 ◽  
Vol 5 (1) ◽  
pp. 1-8
Author(s):  
AM. M. Hafidz MS ◽  
Agus Fakhrina
Keyword(s):  
Sampling Technique ◽  
Phenomenological Approach ◽  
Primary Data ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Central Java ◽  
Conventional Banks ◽  
Important Position ◽  
Qualitative Phenomenological ◽  
And Behavior

This article aims to explain the perceptions and behavior of Moslem scholars (ulama/kiai) on the coast of Central Java toward Islamic banks. It is unassailable that finding out the kiai’s perception and behavior toward Islamic banks becomes unavoidable because the kiai occupies a very important position in the social structure as an agent of social change. In order to have an approriate understanding toward the perception and behavior, this study used qualitative-phenomenological approach. The main source of primary data were obtained from the kiai in Pekalongan region by using purposive sampling technique. Indepth-interview as the prominent method in gaining data was reinforced by observation method. To get validity of data, internal and external validity were performed. The former was taken through four stages, namely triangulation, emic process, member checking and prolonged time; and the latter through transferability. Data were analyzed inductively through three cronological steps, e.i. data reduction, display and conclusion drawing. Based on the perceptions and behavior of scholars toward Islamic banks, this study concludes that there are three categories of kiai. The first is an idealist compromise (kompromis-idealis) which argues that Islamic banks do not fully comply with sharia compliance yet, the use of Islamic banks is compulsory and conventional banks are not substitutes for Islamic banks. The second is a realistic compromise (kompromis realistis) which infers that Islamic banks are not fully accordance with sharia commpliance, the use of Islamic banks is not mandatory, but conventional banks are not substitutes for Islamic banks. The third is resistance (resisten) which argues that Islamic banks are not much different from conventional banks, so making use of Islamic bank is not obligation, and conventional banks substitute Islamic banks.

scholarly journals 'MAQASID AL-SHARIAH' IN ISLAMIC BANKS BEFORE VALUE-BASED INTERMEDIATION IMPLEMENTATION

2021 ◽  
Vol 18 (2) ◽  
pp. 173-189
Author(s):  
Sharifah Faigah Syed Alwi ◽  
◽  
Fateha Abd Halim ◽  
Tengku Dewi Ahdiyaty Tengku Ahmad Mazlin ◽  
Aizurra Haidah Abdul Kadir ◽  
...  
Keyword(s):  
Qualitative Methodology ◽  
Islamic Law ◽  
Human Life ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Structured Interviews ◽  
The Public ◽  
Library Research ◽  
Banking Institutions ◽  
Banking Operations

Bank Negara Malaysia (BNM) had introduced Value-Based Intermediation (VBI) initiatives to help Islamic banks implement a structuralised form of maqasid al-shariah (objectives of shariah (Islamic law)) in their banking operations. Thus, questions were raised by the public on whether or not Islamic banking institutions in Malaysia had been achieving maqasid al-shariah in their banking operations prior to VBI. This paper aims to discuss the real concept of maqasid al-shariah that should be realised in Islamic banks and investigate whether Islamic banks had truly been achieving maqasid al-shariah in their banking operations before the introduction of VBI. Library research is conducted to obtain information on maqasid al-shariah and the qualitative methodology is adopted to gain information from three bankers representing three Islamic banks in Malaysia via semi-structured interviews. The researchers found that the fundamental concept of maqasid al-shariah in Islamic banks includes the protection of religion, life, intellect, progeny and wealth in human life through the products and services offered by the banks. The Islamic banks were found to have developed their products and services to achieve maqasid al-shariah even before VBI was introduced by BNM. However, with VBI, a proper framework in achieving maqasid al-shariah has been developed.

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