scholarly journals Drivers’ Growth of Islamic Banking Industry: Lesson from Malaysia

2014 ◽  
Vol 1 (4) ◽  
pp. 122-128
Author(s):  
Yagoub Elryah

Numerous studies focus on the Islamic banking performance, banks’ growth. There are, however, very little is known about the drivers’ growth of Islamic banking. The paper attempted to fill this gap. To achieve the objectives of the study, we consider government financial strategies for Islamic banking in Malaysia (Master Plan financial services 2000-2010 and Blueprint financial sector plan 2011-2020) and interviews the policy makers and regulators from BNM and selected banks. In this context, we explored the drivers’ growth Islamic banking industry in Malaysia for the period 2002-2012. The findings of the study revealed that the government strategies, high skilled banker’s human resources, financial stability, foreign banks, innovative products, awareness of the customers and quality of the financial and regulatory reforms were main drivers’ growth of Islamic banking in Malaysia. DOI: http://dx.doi.org/10.3126/ijssm.v1i4.10626 Int. J. Soc. Sci. Manage. Vol-1, issue-4: 122-128 

2020 ◽  
Vol 2 (2) ◽  
pp. 73-97
Author(s):  
Abdullah Zubair ◽  
Hamid Hasan

Service quality is an essential organizational factor that has a positive relationship with customer satisfaction. Thus, in this paper, we measure the service quality of the Islamic banking industry of Afghanistan and customer satisfaction through the modified CARTER model. We collected data in Kabul province from customers of the following banks: Afghanistan International Bank (AIB), Afghan United Bank (AUB), Bank-e-Millie Afghan (BMA), Ghazanfar Bank (GB), and Islamic Bank of Afghanistan (IBA). In nutshell, our study results reveal that in the Islamic banking industry of Afghanistan out of seven dimensions of service quality only four dimensions are significant namely; compliance (COM), reliability, empathy (EMP), responsiveness (RES) while the other three dimensions namely; assurance (ASR), tangibles (TAN), and corporate social responsibility (CSR) are insignificant for the customers of Islamic banking in Afghanistan. Thus, our study suggests that the Islamic banking industry in Afghanistan needs improvement in innovative products and services with their pricing and designing policies. Similarly, the Islamic banking industry of Afghanistan needs to determine a fair profit ratio for bank management, making easy required conditions and terms in the agreement with customers, and taking a fair commission on services. This research will help the Islamic banking industry of Afghanistan to adjust and design truly their operational and managerial policies.


2019 ◽  
Vol 6 (4) ◽  
pp. 208-219
Author(s):  
Nurun Nadia Mohamad ◽  
Rusni Hassan

The purpose of this paper is to discuss the financial consumer protection in Islamic banks in the context of Islamic Financial Service Act 2013 (IFSA 2013) by looking simultaneously to the standards and guidelines issued by Bank Negara Malaysia (BNM). This conceptual paper examines relevant provisions in both Acts as well as in respective standards and guidelines by BNM related to financial consumer protection. In keeping with the main focuses of BNM on promoting fair, responsible and professional conduct by financial services providers to secure financial stability, this paper highlights the provisions which need to be adhered by the Islamic banks in treating their financial consumers. The discussions of the relevant provisions, standards, and guidelines will enrich the academic understanding of financial consumer protection in Malaysia. This study provides an insight on the initiatives taken in Malaysia particularly in the Islamic banking industry to protect the financial consumers.


2020 ◽  
Vol 3 (2) ◽  
pp. 170
Author(s):  
Herdian Ayu Andreana Beru Tarigan ◽  
Darminto Hartono Paulus

<p>Increasing competition in the Indonesian banking industry has encouraged many banks to improve the quality of services to customers by utilizing information technology developments. Service innovation in the use of information technology encourages banks to enter the era of digital banking services. However, the development of digital banking services also increases the risks faced by banks. The purpose of this study is to provide an overview of the implementation of digital banking services and customer protection for risks from digital banking services. The method used in this study is an empirical legal research method. The results of this study indicate that the implementation of digital banking services is regulated by OJK Regulation No.12/POJK.03/2018. The existence of this OJK Regulation is expected by banks as providers of digital banking services to always prioritize risk management in the use of information technology. In addition, this study also shows the existence of 2 types of customer protection for the use of digital banking services, namely preventive protection in the form of legislation related to customer protection in the financial services sector and repressive protection in the form of bank accountability for complaints from customers using digital banking services.</p>


2021 ◽  
Author(s):  
Bénédique Paul ◽  
◽  
Ahmad H. Juma'h ◽  
Florys Dorante ◽  
◽  
...  

Banks are the pillars of entrepreneurship expansion and economic development. In developing countries, where there is little public financial support for entrepreneurs, it is clear that banks, among other financial institutions, should be part of the solution to the problem of financing economic activity. As financial intermediaries, commercial banks need to enjoy good perception among entrepreneurs to improve their profitability. To achieve such objective, banks sometimes adopt social responsibility strategies to influence public perception of banks’ behavior. How do Haitian entrepreneurs perceive Haitian banks’ social responsibility? To answer this question, we collect empirical data among entrepreneurs of all size (micro, small and large). The findings help interesting discussions of banks perception among entrepreneurs divided by demographic (gender, location) and economic (sector, size, assets) characteristics. Among the main conclusions, we find that banks enjoy very bad perception among entrepreneurs (all size). Also, the special concessions given by the Government and other international institutions to the banking industry in Haiti help very few to increase the financial services for Haitian entrepreneurs. From our conclusion arise questions for future research to study the relations between entrepreneurs’ own practices of corporate social responsibility and their perception of banks social responsibility.


2021 ◽  
Vol 4 (1) ◽  
pp. 43
Author(s):  
Inna Fauzi ◽  
Yassirlana Anjani

<p><em>This study aims to examine the policy of Islamic banking law in maintaining its existence in the face of the plague that is hitting Indonesia. OJK (Financial Services Authority) has also made a number of policies that are used as an effort to save the economy in Indonesia. One of the regulations is stated in POJK  Number 18 / POJK.03 / 2020 concerning "Written Orders for Handling Bank Problems". The legal policy used by Islamic banking is to measure the new OJK regulations as the organizer of an integrated regulatory and supervisory system of all activities in the financial services sector. The method used in this research is descriptive qualitative. The method used in this research is descriptive qualitative. related to the world of banking. The method used in this research is descriptive qualitative. The object of this research is Islamic banking which has more religious wisdom. The results of this study indicate that Islamic banking is making service updates, considering that the transition of the banking world to digital can increase the efficiency of work processes and improve the quality of customer service, by digitizing during the pandemic. The bank has made long-term investments and it is projected that digital services will be one of the main drivers of sustainable banking industry growth in the context of fulfilling POJK Number 18 / POJK.03 / 2020.</em></p><p><em><br /></em></p>


2020 ◽  
Vol 17 (2) ◽  
pp. 281-298
Author(s):  
Samsul Samsul ◽  
Mohd. Fauzi Abu Husen

Every time a household is built, there is certainly a hope of achieving happiness, sakinah, mawaddah wa rahmah, which is the purpose of marriage. Divorce can be carried out as an emergency exit, and it is not an urgent thing that must be done, but the most hated of permissible things. Divorce cases in the Religious Courts of Lampung Province increase every year, which shows that the performance of BP4 Lampung has not been optimal. Therefore, it needs to be evaluated scientifically. The objective of this study is to find a form of reconstruction of the work management of BP4 Lampung in building a sakinah family. This study used qualitative research with a descriptive-analytical type. The approach used interviews, documentation, and observation. The work management of the BP4 Lampung in realizing the sakinah family includes: First, the selection of management and organizational members who have spiritual, cultural, and intellectual dimensions; Second, the provision of honorary and social security; Third, training and development or competency development and training. Reconstruction that can be carried out is budgeting, where after the issuance of the law on regional autonomy, then BP4 Lampung, which is a partner of the Ministry of Religion and related agencies in improving the quality of marriage by developing the sakinah family movement, should get attention in the whole budgeting problem by the government, so that this program can be run optimally. To policy makers, both from the legislative and executive elements, along with the scholars, they should be proactive in paying attention to and following up on very complex Muslim problems, especially in the realm of Islamic family law and at the same time damaging the morals and values of the society in general. In this case, the most important problem is the prevalence of divorce practices in Lampung which have a negative impact on the psychological development of families.Setiap terbangunnya rumah tangga, tentunya ada sebuah harapan tercapainya kebahagiaan, sakinah, mawaddah wa rahmah, begitulah tujuan dari perkawinan. Perceraian dapat dilakukan sebagai emergency exit, dan bukanlah hal urgen yang harus dilakukan, melainkan kebolehan yang dibenci. Kasus perceraian di lingkungan Pengadilan Agama Provinsi Lampung tiap tahun meningkat, hal ini menunjukkan bahwa kinerja BP4 Lampung belum berjalan optimal, sehingga perlu dievaluasi secara ilmiah. Penelitian ini bertujuan untuk menemukan bentuk rekonstruksi terhadap manajemen kerja BP4 Lampung dalam membangun keluarga sakinah. Penelitian ini merupakan penelitian kualitatif dengan jenis deskriptif-analitis. Pendekatan yang digunakan menggunakan wawancara, dokumentasi dan observasi. Manajemen kerja BP4 Lampung dalam mewujudkan keluarga sakinah di adalah; Pertama, penjaringan pengurus dan anggota organisasi yang memiliki dimensi spiritual, budaya, dan kecerdasan. Kedua, pemberian honorarium dan jaminan sosial, Ketiga, training and development atau pengembangan kompetensi dan pelatihan. Upaya rekonstruksi yang dapat dilakukan adalah melalui budgeting, di mana pasca lahirnya undang-undang tentang otonomi daerah, maka BP4 Lampung yang merupakan mitra Kementerian Agama dan instansi-instansi yang terkait dalam tugas meningkatkan mutu perkawinan dengan mengembangkan gerakan keluarga sakinah, seharusnya mendapatkan perhatian dalam masalah penganggaran secara utuh oleh pemerintah. Sehingga program ini dapat berjalan dengan maksimal. Kepada para penentu kebijakan, baik dari unsur legislatif maupun eksekutif, beserta para ulama’ agar proaktif dalam memperhatikan dan menindak lanjuti permasalahan umat muslim yang sangat kompleks khususnya pada ranah hukum keluarga Islam dan sekaligus dapat merusak akidah dan akhlak masyarakat secara umum. Di mana, permasalahan terpentingnya adalah, tentang maraknya praktik cerai gugat di Lampung yang berdampak negatif terhadap perkembangan psikologis keluarga.


2017 ◽  
Vol 18 (5) ◽  
pp. 974-1004 ◽  
Author(s):  
Rizwan Raheem AHMED ◽  
Jolita VVEINHARDT ◽  
Dalia ŠTREIMIKIENĖ ◽  
Muhammad ASHRAF ◽  
Zahid Ali CHANNAR

Banks are very important financial services sector, and in banking sector there is an intense competition amongst the local and foreign banks throughout the world. The objective of this research is to analyse the effects of perceived value and customer trust, and role of technology in banking service qualities and customers’ satisfaction in Pakistani context. For this purpose we employed modified SERVQUAL model with four dimensions such as empathy, competence, reliability, and online service. An adapted questionnaire was used to carry out this survey research, and collected 830 responses from the customers of Pakistani banking industry. We used factor analysis, confirmatory factor analysis, and bootstrapping methods to carry out this research. The results of the study demonstrated that our four-dimensional model of modified SERVQUAL has a significant impact on overall customer satisfaction. It is further concluded from the bootstrapping method that modified SERVQUAL dimensions and customer satisfaction are positively mediated by the perceived value and trust. Finally, it is also concluded that the implementation of technology serves as moderating variable in the banking sector. The outcomes of this research are beneficial to the senior management of banking sector in order to implement the effective and customised online banking structure to gain competitive advantages, and provide vibrant online banking services that enhance the standard and ease of services to the customers and earn their confidence. The originality and novelty of this research provide a significant contribution in the application of SERVQUAL model specifically for the banking service quality dimensions and customer satisfaction in marketing research.


2016 ◽  
pp. 1306-1332 ◽  
Author(s):  
Felix Lopez-Iturriaga ◽  
Iván Pastor-Sanz

This chapter combines two methods based on neural networks (trait recognition and self-organizing maps) to develop a model of bankruptcy prediction. The authors apply the method to the Spanish savings banks, most of them rescued by the Government between 2008 and 2013 in a costly massive process. First, the authors detect the combinations of variables (performance, asset structure, and capitalization) that best describe the profile of the rescued savings banks. Then, the authors use these combinations on a yearly basis to generate bi-dimensional maps in which banks are placed according to their risk and similarities. This method provides a visual tool that can improve the oversight of policy makers on the whole financial system and enable time pertinent answers to some threatens to the country financial stability. The maps are useful means to detect and understand how the financial threats emerge over time too.


Author(s):  
Ambareen Beebeejaun

While Islamic finance continues to evolve at a fast pace across the globe, the government of Mauritius is undertaking various initiatives to encourage and facilitate the conduct of Islamic banking activities in the country. Examples are the admission of the Bank of Mauritius as an associate member of the Islamic Financial Services Board in 2007, the enactment of the guidelines for Islamic banking in 2008, and the hosting of the 11th Islamic Financial Services Board Summit in 2014. Consequently, through these endeavors, several stakeholders offering Islamic finance products are expressing interest to set up their business infrastructures in Mauritius. Hence, this chapter discusses the main governance and financial reporting requirements of the offeror of Islamic banking products such that potential investors are acquainted with the legal and compliance needs of an Islamic bank operating in Mauritius.


2002 ◽  
Vol 41 (4II) ◽  
pp. 567-580 ◽  
Author(s):  
Mohammad Hanif Akhtar

The emergence of a fast-paced dynamic environment in the business world in general, and in the financial services sector in particular, has highlighted the significance of competition and efficiency. The need for deregulation has become a touchstone of success in fostering both competition and efficiency especially in the economies, which are exposed to structural reforms. In addition to that, intense competition both among domestic and foreign banks, rapid speed of innovations and introduction of new financial instruments, changing consumer’s demands and desire for product augmentation have changed the way a bank conducts business and services its customers. Larger the degree of competition, it is perceived that the firms would become more efficient. However, when the structure of an industry is product of the government regulations, the degree of competition is impaired markedly implying that the efficiency suffers negatively.


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