scholarly journals Customers’ perceptions of selection criteria used by Islamic bank customers in Sudan: The importance of Shariah compliance

2019 ◽  
Vol 1 (4) ◽  
pp. 20-32 ◽  
Author(s):  
Ilham Hassan Fathelrahman Mansour
Keyword(s):  
Banking System ◽  
Selection Criterion ◽  
Third Party ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Holistic View ◽  
Islamic Bank ◽  
Muslim Countries ◽  
Customer Care

This paper attempts to investigate the importance of Shariah compliance compared to other criteria that influence the selection of Islamic banks in Sudan, a total Islamic banking system in which the “Islamic” variable is supposed to be constant.  Primary data collected by self-administered questionnaires distributed to a sample of 393 respondents from bank locations in the capital of Khartoum state. The perceptions on the importance of choice criteria ranked by the respondents were analyzed using mean analysis and independent t-test. Exploratory factor analysis is employed to provide a more holistic view of the bank choice criteria. The customers of Sudanese Islamic banks prioritized Shariah compliance factors over another selection criterion. We conclude that although all banks work under the Islamic system, consumers were most concerned with the extent to which their bank services are adhering to Islamic principles. Other factors deemed important were “Experience and third-party influence”, followed by staff competency, convenience, service quality, bank reputation, and customer care. Most studies have focused on countries with mixed conventional and Islamic banking systems (Arab and other Muslim countries). This study aims to contribute to the development of a better understanding of the determinants of Islamic bank selection in Sudan, an Arab African country characterized by a strong Islamic culture and a total Islamic banking system.

Satisfaction of Pakistan’s Islamic banking system during the COVID-19 pandemic Logistic model-based identification of the determinants to improve customer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Majed Alharthi ◽  
Imran Hanif ◽  
Hafeez Ur Rehman ◽  
Hawazen Alamoudi
Keyword(s):  
Banking System ◽  
External Factors ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Internal Factors ◽  
Content Type ◽  
Islamic Bank ◽  
Strict Compliance ◽  
Internal And External Factors

Purpose This study aims to explore the potential determinants of customers’ satisfaction with the Islamic banking system and highlights the fact that both internal and external factors play key roles in customer satisfaction (CS) during the COVID-19 pandemic. Design/methodology/approach Primary data from six Islamic banks (Al Baraka Bank Ltd, BankIslami Pakistan Ltd, Burj Bank Ltd, Dubai Islamic Bank Ltd, Meezan Bank Ltd and MCB-Islamic Bank Ltd) were analysed using a binary logit method. Findings The results showed that internal factors such as hand sanitisation facilities, strict compliance with wearing a mask before entering the bank, the distance between customers and dealing officers, an organised network of branches (in terms of health safety protocols), the behaviour of dealing officers and extended banking hours contributed significantly to enhancing the satisfaction of Islamic banking customers during the pandemic in Pakistan. The results showed that high service charges on loans have a significant adverse impact on CS. Concerning external factors, the results showed that mass media platforms that can update customers about new services and customer transactions’ processing timing, the number of operational branches in the pandemic period, available parking space in front of a bank and recommendations from family and friends to open an account with a particular bank increase CS levels. Practical implications The study’s results will be helpful for the policymakers and practitioners to design such policies that can promote the Islamic banking system in developing countries such as Pakistan. Originality/value Under the pandemic situation, the present study highlights the internal and external determinants of Islamic banking customers’ satisfaction in Pakistan. The study provides a foundation for Islamic Banks to revise their policy frameworks and marketing strategies to attract customer interest and improve their satisfaction levels.

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 Analisi Persepsi Dosen Terhadap Perbankan Syariah (Studi Kasus Dosen Fakultas Ekonomi UMN)

2019 ◽  
Vol 4 (2) ◽  
pp. 436
Author(s):  
Mawaddah Irham
Keyword(s):  
Qualitative Method ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank

<p align="center">Perception is the process of one's interpretation of the environment, in this case the perception of Islamic banking. The purpose of this study was to determine how perceptions of UMN economics lecturers on Islamic banking. The method used is a qualitative method. The data used are primary data in the form of a questionnaire. The results of the study provide data that 70% of informants agree with the principles of Islamic banks, that is monotheism. 40% of informants stated neutral and 33% agreed to Islamic bank operations and 44% stated neutral and 40% agreed to the objectives of Islamic banks.</p>

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 LAHIRNYA PERBANKAN SYARI’AH DI INDONESIA

2019 ◽  
Vol 1 (1) ◽  
pp. 35-54
Author(s):  
Rita Mulyani
Keyword(s):  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Community ◽  
Muslim Population ◽  
Islamic Bank ◽  
Muslim Countries ◽  
The World ◽  
The Difference ◽  
The Many ◽  
Conventional Bank

With the development of increasingly advanced times, the bank continues to make new innovations so that at this time the bank is no longer just an institution that functions to collect and distribute funds, but at the same time also as an intermediary in the payment traffic. However, the Muslim community strives to realize banking based on sharia principles. For this reason, several Muslim countries have slowly begun to establish Islamic Banks. The development of Islamic banking is quite significant in several countries, but of the many countries, Indonesia actually has a different side. The difference lies in the term used to refer to a non-conventional bank. While other countries commonly refer to it as an Islamic Bank, in Indonesia it is actually called the Sharia Banking because the idea of ​​the Islamic Bank is alleged to have contained political and SARA elements. With high stretches owned by several Muslim countries to establish shari'ah banking, Indonesia as the country with the largest Muslim population in the world established the first sharia banking under the name Bank Muamalat Indonesia (BMI) which was officially operated in 1992. From year to year, Sharia banking growth is very fast. Keywords : Banking, Sharia Banking,Indonesia.   Abstrak Dengan perkembangan zaman yang semakin maju, bank terus melakukan inovasi baru sehingga pada saat ini bank tidak lagi hanya sekedar lembaga yang berfungsi menghimpun dan menyalurkan dana saja, namun sekaligus juga sebagai intermediasi dalam lalu lintas pembayaran. Namun, komunitas Muslim berusaha untuk mewujudkan perbankan berdasarkan prinsip syariah. Atas dasar alasan inilah, beberapa negara muslim perlahan mulai mendirikan Bank Islam. Perkembangan perbankan Islam cukup signifikan terjadi di beberapa negara, tetapi dari sekian banyak negara, Indonesia justru memiliki sisi yang berbeda. Perbedaan tersebut terletak pada istilah yang dipakai untuk menyebut bank yang nonkonvensional.Di saat negara-negara lain lazim menyebutnya sebagai Bank Islam, di Indonesia justrumenyebutnya Bank Syari’ah karena istilah Bank Islam diduga mengandung unsur politik dan SARA.Dengan geliat tinggi yang dimiliki oleh beberapa negara muslim untuk mendirikan perbankan syari’ah, Indonesia sebagai negara dengan populasi muslim terbesar di dunia mendirikan perbankan syariah pertama dengan nama Bank Muamalat Indonesia (BMI) yang secara resmi beroperasi pada tahun 1992.Dari tahun ke tahun, pertumbuhan perbankan syari’ah sangatcepat. Kata Kunci : Perbankan, Perbankan Syariah, Indonesia.

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 CONVERTION OF DSN-MUI’S FATWA ON ISLAMIC BANKING TO BE THE NATIONAL LAW: A Comparative Study in Muslim Countries

JURISDICTIE ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 262-285
Author(s):  
Angga Syahputra ◽  
Reni Ria Armayani
Keyword(s):  
Comparative Study ◽  
Financial Services ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Legal Research ◽  
Islamic Bank ◽  
Muslim Countries ◽  
Fundamental Law ◽  
Binding Power

Islamic banks in Indonesia have been significantly developing since 2008. This development has yet been supported by operational regulations. Islamic Banks operational mostly refers to fatwa of DSN-MUI. However, those fatwas must be converted to the regulations of Bank Indonesia or Financial Services Authority (OJK) to have binding power. This article aims at describing DSN-MUI’s fatwa position as the fundamental law of Islamic Banking implementation. Besides, this article compares the position of ulama’s fatwa in implementing Islamic Bank in several Muslim countries. The article is originated from Doctrinal Legal research with conceptual and comparative approaches. The result shows that DSN-MUI;s fatwa position in implementing Islamic Banks is not yet operational because it must be first converted into the regulations of Bank Indonesia or OJK. Different condition found in other Muslim countries, ulama’s fatwa becomes the main reference for implementing Islamic Banks. This is because the country places ulama’s fatwa higher than banking authoritative.Perbankan syariah di Indonesia terus mengalami kemajuan signifikan sejak tahun 2008. Perkembangan ini belum didukung dengan aturan-aturan yang bersifa operasional. Operasional perbankan syariah lebih banyak merujuk pada fatwa DSN-MUI. Namun, fatwa-fatwa tersebut harus dikonversi terlebih dahulu kepada peraturan bank Indonesia atau Peraturan Otoritas Jasa Keuangan agar memiliki daya ikat. Artikel ini bertujuan mendeskripsikan kedudukan fatwa DSN-MUI sebagai dasar hukum pelasanaan perbankan syariah. Selain itu, artikel ini membandingkan kedudukan fatwa ulama dalam pelaksanaan perbankan syariah di beberapa negara muslim. Artikel ini berasal dari penelitian hukum doctrinal dengan pendekatan konsep dan komparatif. Hasil kajian artikel ini menunjukkan bahwa kedudukan fatwa DSN-MUI dalam pelaksanaan perbankan syariah belum bersifat operasional. Karena Fatwa DSN-MUI harus dikonversi dalam bentuk Peraturan Bank Indonesia atau Peraturan Otoritas Jasa Keuangan. Kondisi berbeda ditemukan di negara-negara muslim, kedudukan fatwa ulama menjadi rujukan utama pelaksanaan perbankan syariah. Hal ini terjadi karena negara memposisikan fatwa ulama lebih tinggi dari otoritas perbankan.

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 '.

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