Patronage behavior of Islamic bank’s consumers: the importance of Shariah compliance within total Islamic banking system

2019 ◽  
Vol 2 (1) ◽  
pp. 201-208
Author(s):  
Ilham Hassan Fathelrahman Mansour
Keyword(s):  
Factor Analysis ◽  
Banking System ◽  
Marketing Strategies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Intense Competition ◽  
Islamic Bank ◽  
Selection Decisions ◽  
Patronage Behavior

This study aims to investigate the patronage behaviour of Islamic banks customers and the importance of Shariah compliance, within a total Islamic banking system, compared to other criteria in their selection decisions. The sample consists of 395 valid and complete responses of bank customers. Factor analysis is used to classify a set of 23 items submitted to participants for their opinion. Findings revealed that within a pure Islamic banking system Shariah Abidance of the Islamic bank is the most important factor in bank patronage. The study has many implications for marketers in designing and planning their marketing strategies and plans and future investments of their organizations, especially when intense competition exist in the industry. The study adds to the existing literature on consumer bank patronage behavior a pure Islamic banking system in the context of Sudan

scholarly journals Faktor-faktor yang Mempengaruhi Minat Menabung di Bank Syariah Surakarta

2020 ◽  
Vol 2 (3) ◽  
pp. 167-172
Author(s):  
Ipfa Retno Astuti
Keyword(s):  
Linear Regression ◽  
Sampling Technique ◽  
Profit Sharing ◽  
Marketing Strategies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank ◽  
Regression Tests

Abstract– This study aims to examine and analyze the effect of religiosity, profit sharing and service on interest in saving at the Surakarta Islamic Bank. The benefits that are expected to increase and provide knowledge related to the influence of religiosity, profit sharing and services on the interest in saving at the Surakarta Islamic Bank, can be used as material for community consideration and Islamic banking management to develop the role of Islamic banking and marketing strategies in Surakarta. The sampling technique was using purposive sampling technique. The population and sample in this study were 71 people who fit the specified criteria. The data were processed using SPSS, the tests carried out included instrument tests, classical assumption tests and multiple linear regression tests. The conclusion in this study is that religiosity has an effect on the interest in saving in Islamic banks in Surakarta. Profit sharing affects the interest in saving in Islamic banks in Surakarta. Services affect the interest in saving at a syariah bank in Surakarta.     Abstrak– Penelitian ini bertujuan untuk menguji dan menganalisis pengaruh religiusitas, bagi hasil dan pelayanan terhadap minat menabung di Bank Syariah Surakarta. Manfaat yang diharapkan dapat menambah dan memberikan pengetahuan yang berkaitan dengan pengaruh religiusitas, bagi hasil dan pelayanan terhadap minat menabung di Bank Syariah Surakarta, dapat digunakan sebagai bahan pertimbangan masyarakat dan manajemen perbankan syariah untuk mengembangkan peranan perbankan syariah dan strategi marketing di Kota Surakarta. Teknik pengambilan sampel menggunakan teknik purposive sampling. Populasi dan sampel dalam penelitian ini adalah 71 orang yang sesuai dengan kriteria yang ditentukan. Data diolah menggunakan SPSS , pengujian yang dilakukan meliputi uji instrumen, uji asumsi klasik dan uji regresi linier berganda. Kesimpulan dalam penelitian ini adalah religiusitas berpengaruh terhadap minat menabung di bank syariah surakarta. Bagi hasil berpengaruh terhadap minat menabung di bank syariah surakarta. Pelayanan berpengaruh terhadap minat menabung di bank syariah surakarta.

scholarly journals BANK RUN AND STABILITY OF ISLAMIC BANKING IN INDONESIA

2017 ◽  
Vol 3 (1) ◽  
pp. 25-60 ◽  
Author(s):  
Rahmatina A. Kasri ◽  
Tika Arundina ◽  
Kenny D. Indraswari ◽  
M. Budi Prasetyo
Keyword(s):  
Factor Analysis ◽  
Financial Stability ◽  
Banking System ◽  
Bank Runs ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Bank Run ◽  
Banking Stability ◽  
Conventional Banks

Bank run is an important economic phenomenon which increasingly occurred in in modern banking system and potentially threatened banking stability as it could trigger a banking crisis. However, most studies related to bank run focus on the occurrence of bank run in conventional banking system. Very few of them discuss the bank run phenomenon under Islamic banking system or dual banking system where Islamic banks jointly operating with conventional banks. Therefore, this study attempts to analyze the determinants of bank run in the Indonesian Islamic banking industry by employing primary data from 256 customers of Indonesia Islamic banks in 2015 and by utilizing factor analysis and descriptive statistics. In theory, Islamic banks tend to be more resilient towards any macroeconomic or financial shocks as compared to conventional banks due to the nature of its asset-based and risk-sharing arrangement. However, the result exhibits that both psychological and fundamental factors (i.e. macroeconomics and bank fundamentals) strongly influence the behaviors of Islamic banking depositors to withdraw their funds, which might trigger the occurrence of bank runs in the country. Insider information, macroeconomic condition and bank fundamental factors are also shown to have the highest impacts among all variables. Hence, in the context of banking stability, the finding implies that Islamic banks are not completely immune to the impacts of macroeconomic shocks or financial crisis. As a country with a dual banking system, Indonesia had experienced several bank runs since 1990s. Therefore, the findings of the study should provide the policy makers important insight into research based-policy in order to attain financial stability as one of the main economic goals of the country.Keywords: Bank run, Islamic bank, Factor analysis, IndonesiaJEL Classification: C83, G21, G28

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.

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

2017 ◽  
Vol 12 (3) ◽  
pp. 35-47 ◽  
Author(s):  
Anton Priyo Nugroho ◽  
Anas Hidayat ◽  
Hadri Kusuma
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.

scholarly journals Customer satisfaction in the digital era: evidence from Islamic banking

2020 ◽  
Author(s):  
Ghazi zouari ◽  
Marwa Abdelhedi
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Five Dimensions ◽  
Islamic Bank ◽  
Digital Era ◽  
The Impact

Abstract PurposeBased upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approachTwo dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.FindingsThe factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implicationsAlthough the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively small sample size in one country (Tunisia). This limits the generalizability of the study results. It might also be useful to enlarge the study sample and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction.Managerial implications:To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/valueThis study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia’ laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

scholarly journals DINAMIKA PENERAPAN AKAD SYARIAH DALAM PRODUK KEUANGAN DI BANK SYARIAH

Asy-Syari ah ◽  
2021 ◽  
Vol 22 (2) ◽  
pp. 259-274
Author(s):  
Jaenudin Jaenudin
Keyword(s):  
Banking System ◽  
Profit Sharing ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Operational System ◽  
Islamic Bank ◽  
Long Time ◽  
The Law ◽  
Contract Implementation ◽  
Banking Institution

Abstract: Sociologically, the existence of Islamic banks in Indonesia had developed since the early 1990 through a long time of workshops and bureaucratic processes until Bank Muamalat Indonesia was established as the first Islamic bank in Indonesia. The existence of Bank Muamalat Indonesia, as the first Islamic bank, has a mission to present an Islamic banking institution that is free from the interest system by replacing its operational system through Islamic principles. Normatively, the profit sharing concept used to an operational system for Islamic banks in Indonesia which has been regulated in Article 1 Number 12 of the Law of Banking Number 7 of 1992, then the dual banking system in Article 9 of the Law of Banking Number 10 of 1998, and the latest. is the application of Islamic principles in the Law of Islamic Bank Number 21 of 2008 through using six patterns: first, the deposit through the wadi'ah contract; second, borrowing through qard and qardh al-hasan contracts; third, the profit sharing scheme through mudharabah and syirkah contracts; fourth, buying and selling through murabahah, salam, and istishna' contracts; fifth, the rental scheme through ijarah and ijarah muntahiya bi al-tamlik contracts; and sixth, the services through wakalah, kafalah, hiwalah, ujr, sharf, and rahn contracts. The result of this study shows that the changes of Islamic banking regulations have implications to the dynamics of Islamic contract implementation in Islamic banking financial products in Indonesia.Abstrak: Secara sosiologis eksistensi bank syariah di Indonesia sudah berkembang sejak awal tahun 1990-an melalui serangkaian proses panjang lokakarya dan birokrasi sehingga berdiri Bank Muamalat Indonesia sebagai bank syariah pertama di Indonesia. Eksistensi Bank Muamalat Indonesia sebagai bank syariah memiliki misi untuk menghadirkan lembaga perbankan syariah yang bebas dari sistem bunga dengan mengganti sistem opersionalnya dengan prinsip-prinsip Islam. Penggunaan konsep bagi hasil sebagai sistem operasional bank syariah di Indonesia secara normatif telah diatur dalam Undang-Undang Nomor 7 Tahun 1992 tentang Perbankan pada Pasal 1 angka 12, kemudian dual banking system dalam Pasal 9 Undang-Undang Nomor 10 Tahun 1998 dan yang terkahir adalah penerapan prinsip syariah dalam Undang-Undang Nomor 21 Tahun 2008 dengan menggunakan enam pola: pertama, pola titipan melalui akad wadi’ah; kedua, pola pinjaman, melalui akad qard dan qardh al-hasan; ketiga, pola bagi hasil melalui akad mudharabah dan syirkah; keempat, pola jual beli melalui akad murabahah, salam, dan istishna’; kelima, pola sewa melalui akad ijarah dan ijarah muntahiya bi al-tamlik; keenam, pola jasa melalui akad wakalah, kafalah, hiwalah, ujr, sharf, dan rahn. Hasil penelitian ini menunjukan bahwa perubahan regulasi perbankan syariah telah berimpli­kasi terhadap dinamika penerapan akad syariah dalam produk keuangan bank syariah di Indonesia.

Does intention influence the financial literacy of depositors of Islamic banking? A case of Malaysia

2020 ◽  
Vol 47 (5) ◽  
pp. 675-690
Author(s):  
Yuvaraj Ganesan ◽  
Anwar Bin Allah Pitchay ◽  
Mohd Aliff Mohd Nasser
Keyword(s):  
Peer Review ◽  
Structural Equation ◽  
Banking System ◽  
Cultural Bias ◽  
Basic Knowledge ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Industry ◽  
Content Type ◽  
Islamic Bank

PurposeSince the establishment of Islamic banks in Malaysia since the 1980s, the banking system has undergone rampant development within the financial industry. It has resulted in a positive competitive challenge for the conventional banks and able to attract not just the Muslim customers, but also those non-Muslim customers. At the same time, understanding the customers' knowledge of Islamic banking products is an interesting issue to explore. This issue is raised because the Islamic bank products are often packaged using Arabic terms, even though it is marketed in non-Arabic countries like Malaysia. Therefore, this study aims to examine the factors that influence the intention of the Islamic banking customers as the result of relying on some information produced by Malaysian Islamic banks.Design/methodology/approachThis study is conducted using the existing underpinning theory of planned behaviour (TPB). A total of 300 questionnaires were analysed using the structural equation modelling (SEM).FindingsThe results indicated that perceived behavioural control, attitude and subjective norms of the Islamic banking depositors are positively influenced by the intention of the depositors to learn about Islamic banking.Research limitations/implicationsOne of the main issues faced in this study is the result cannot be generalised. It is not possible to know based on the collected data if the sample is representative, other than the fact that all of the respondents are Islamic bank depositors. Nevertheless, it can still be a catalyst for further research as a link to existing findings in the area. There might be a bias on the understanding of the respondents about Islamic banking. This is due to the fact that Malaysia is a multi-racial population. Malay people might have a better understanding and basic knowledge about Islamic banking than the Chinese, Indians and other races. This cultural bias could be overcome in future studies by identifying respondents who have experiences in dealing with Islamic banking.Originality/valueThis study provides interesting insights of the Malaysian banking industry in terms of the multi-racial customers' intention to learn about Islamic banking, which is scarcely discussed in the extant literature.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2019-0011.

scholarly journals MURABAHAH IN ISLAMIC BANKING SYSTEM

2019 ◽  
Vol 11 (1) ◽  
pp. 69-88
Author(s):  
Fariz Al-Hasni
Keyword(s):  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Working Capital ◽  
Islamic Bank ◽  
Investment Financing ◽  
Main Support ◽  
Conventional Bank

Islamic bank products have similarities but are not the same as conventional bank products because they have a ban on usury, gharar, and maysir. Therefore, approval and financing products such as working capital and investment in the form of sale and purchase agreements in Islamic banks must be avoided. sale and purchase agreement that has been discussed by Islamic scholars of muamalah is very much Islamic. The amount can reach dozens if not reached. Even so, of these many forms, there are three types of buying and selling that have been developed as the main support in working capital and investment financing in Islamic banking, namely, bai'al-murabahah, bai 'as-salam, and bai' al-istishna '.

scholarly journals THE OBSTACLE FACTORS OF MUSHARAKAH AND MUDHARABAH APPLICATION IN PAKISTAN

2020 ◽  
Vol 17 (2) ◽  
Author(s):  
Muhammad Khan ◽  
◽  
Dodik Siswantoro ◽  
Abid Ur Rahman ◽  
◽  
...  
Keyword(s):  
Critical Analysis ◽  
Banking System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Islamic Jurisprudence ◽  
Main Factors ◽  
Internal And External Factors ◽  
Regulatory Constraint

Islamic Banking is based on the Islamic financial system. It is a banking system whose fundamental rules and regulations are established on Shariah laws i.e., Islamic jurisprudence originated from the Quran and Sunnah of the Prophet Muhammad peace be upon him. Its functions must comply with Shariah rules and must not violate any Shariah principle. The Islamic finance system is based on Profit-loss sharing financing namely, Musharakah and Mudharabah but there are numerous issues and challenges faced by Islamic bank during the implementation of Musharakah and Mudharabah financing contracts. The various paper has been revealed some of the internal and external factors in this context, but the study is still unexplored in Pakistan. This paper aims to highlight those obstacles factors that affect the application of Musharakah and Mudharabah financing by Islamic Banks in Pakistan. This paper is based on the critical analysis of the related literature on the concepts of Profit-loss sharing based financing by Islamic Banks. The finding suggests 4 (four) main factors which hinder the application of Musharakah and Mudharabah by Islamic bank in Pakistan namely high risk, lack of awareness, Regulatory constraint and Low rate of return. Finally, this paper concludes by making recommendations that may be adopted by Islamic banks and regulators to facilitate the promotion of Musharakah and Mudharabah Financing.

scholarly journals MEMBANGUN KEUNGGULAN BERSAING DENGAN METODE ANALISIS SWOT 8 KUADRAN PADA PERBANKAN SYARIAH ( STUDI PADA BRI SYARIAH KOTA BATAM )

2019 ◽  
Vol 9 (2) ◽  
pp. 1
Author(s):  
Erman Syah
Keyword(s):  
Product Development ◽  
Banking Industry ◽  
Banking System ◽  
Growth Strategy ◽  
Market Development ◽  
Islamic Banking ◽  
Market Penetration ◽  
Islamic Banks ◽  
Islamic Bank ◽  
National Market

The development of Islamic banking in mature growing very rapidly, Islamic banking is considered as an alternative option for people who want to trade in sharia, Islamic banks are present in the community began in 1992, andthe institution until 2017 there were 12 Islamic banks, 22 Sharia Islamic rural banks and 155 units BPR in Indonesia, a very tight competition in the banking industry led to a strategy that should be done by the banking system. BRI Syariah Batam as a new Islamic bank in the Islamic banking industry and nationally are expected to compete for the national market share.The purpose of this study whether strategy should BRI Syariah Batam in order to be able to compete Kepualauan Riau, To know the strategies that should be used by the author using SWOT 8 Quadrant.From the results of research by analyzing the internal and external corporate Batam found that BRI Syariah expected to apply aggressive growth strategy by way of market penetration, market development and product development.

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