scholarly journals An analysis of the attitudes of internet users towards the islamic financial system

2021 ◽  
Vol 16 (3) ◽  
pp. 32-44
Author(s):  
N. M. Alasgarova
Keyword(s):  
Financial System ◽  
Public Attitude ◽  
Google Trends ◽  
Islamic Finance ◽  
Islamic Banking ◽  
The Public ◽  
Survey Statistics ◽  
Internet Users ◽  
Using Data

In this article has been explored the attitude of Internet users toward the Islamic financial system using data from Google Trends and WorldData.AI. An attitudes towards Islamic finance, Islamic economics and Islamic banking have been compared using from Google Trends survey statistics. Also, in the WorldData. AI. source has been analyzed that the news texts on Islamic finance for the last 12 months and found that the public attitude towards Islamic finance was positive.

Opportunities and Challenges of Social Media to the Islamic Banks in Indonesia

2020 ◽  
pp. 227-251
Author(s):  
Ahmad Rafiki
Keyword(s):  
Social Media ◽  
Distribution Networks ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Low Literacy ◽  
The Public ◽  
Negative Comments ◽  
Inclusion Level ◽  
Islamic Identity

The Islamic banks in Indonesia have a serious issue of a low market share of 5%. This emerged due to the limited/unvaried product range, low literacy and inclusion level of Islamic finance, unfavorable perception for Islamic banking, and limited distribution networks and outreach. All of these causes could be resolved by using social media, which will bring several opportunities such as transparency and openness, effective marketing channels, stakeholders' relationship, social media content, brand image and reputation, shariah compliance activity, learning and knowledge, and greater personalization. Meanwhile, in using social media, the Islamic banks face few challenges such as network infrastructure, negative comments, information risk management, privacy, and deception. This chapter can be a reference to any institutions, particularly the Islamic banks which associated with digital interfaces and interactions in their daily businesses. Thus expectedly, the Islamic banks could enhance the public trust and establish a good Islamic identity.

scholarly journals Fund Ownership of Sharia Banking According to Islamic Economic Political Perspective

2021 ◽  
Vol 5 (2) ◽  
pp. 113
Author(s):  
Muhamad Izazi Nurjaman
Keyword(s):  
Third Party ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Public ◽  
Political Perspective ◽  
Economic Politics ◽  
Using Data ◽  
Islamic Economic ◽  
The Right ◽  
Ownership Rights

The concept of ownership in Islamic economics states that individuals or legal entities that have the right to ownership of a property may use it freely as long as it does not violate Islamic economic principles and the public interest. However, for Islamic banking, the ownership of funds used as business capital comes from investor customers who deposit their funds in Islamic banks. This has an effect on the ownership status of these funds. This article uses a descriptive literature research method taken from various factual references with a focus on using a normative juridical approach. This type of research is qualitative research using data analysis through several steps such as focusing data, presenting funds and drawing conclusions. The results of this study reveal the fact that the ownership rights of funds in Islamic banking are sourced from the first party funds as the bank's founder, the second party funds as shareholders and third party funds as investor customers. Ownership of these funds cannot be separated from the contract mechanism used. So that the contract used is the cause of Islamic banks having ownership rights to use these assets for business activities. The use of these funds is guaranteed by law, which shows the role of Islamic economic politics through the legal umbrella that regulates the operational system of Islamic banking, especially in the permitting of the use of investor funds for business activities through the mechanism of channeling funds and service mechanisms.

IMPACT OF ISLAMIC FINANCE ON ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS OF MUSLIM COUNTRIES

2020 ◽  
pp. 1-21 ◽  
Author(s):  
SYEDA AROOJ NAZ ◽  
SAQIB GULZAR
Keyword(s):  
Economic Growth ◽  
Empirical Analysis ◽  
Financial System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Countries ◽  
Real Gdp ◽  
Long Run ◽  
Global Financial System

Islamic finance is one of the most rapidly growing sectors of the global financial system. This paper empirically outlines the pure effect of Islamic finance including Islamic banking and Islamic bonds on economic growth in major Muslim countries. Current study has taken up Islamic banks’ assets and Islamic banks’ financing, total value of sukuk issued and real GDP as measuring proxies. For the analysis, PMG of ARDL framework has been utilized. The outcomes of the study revealed that in the long run, Islamic banks’ assets, Islamic banks’ financing and Islamic bonds are significantly correlated with real GDP in Muslim countries.

scholarly journals From Goldsmiths to Modern Banking: A Frank Look at the Money-Creation Process and its Relevance to Islamic Banking

ICR Journal ◽  
2013 ◽  
Vol 4 (3) ◽  
pp. 349-370
Author(s):  
Yusuf Jha
Keyword(s):  
Financial System ◽  
Central Element ◽  
Commercial Banking ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Modus Operandi ◽  
Creation Process ◽  
Financial Architecture ◽  
Money Creation ◽  
Key Questions

This paper discusses the role interest has played in the modern financial system, highlighting the money creation process in particular and the key questions that arise within Islamic Finance as a result. The paper contends that the legalisation of interest built the foundations for much of our modern day financial architecture with the modus operandi of commercial banking being its central element. As a result, money today is mainly created as interest-bearing debt with a host of associated consequences. Among these are an artificial economy of scarcity, endemic debt pressure, constant inflation, wealth polarisation, an ever present risk of default, and the environmentally irreconcilable paradigm of perpetual growth. Consequentially the interest-based modern financial system has seemingly set the world on a path necessitating an incessant demand to privatise, commoditise, and monetise ever increasing amounts of the earth’s resources, causing us to live in an age where finance, energy, health care, and the ecosystem are reportedly headed towards imminent collapse. The question for Islamic finance practitioners is whether their discipline as currently practiced is actually providing a solution towards tackling these crises, or whether it is instead normalising the problems within an “Islamic” framework.

Pemakaian Prinsip Hibah Dalam Sistem Kewangan Islam Di Malaysia: Tumpuan Kepada Industri Perbankan Islam Dan Takaful

2012 ◽  
Author(s):  
Nasrul Hisyam Nor Muhamad
Keyword(s):  
Key Words ◽  
Financial Institutions ◽  
Islamic Law ◽  
Financial System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Financial Institutions ◽  
Support Principle ◽  
Islamic Insurance ◽  
Inter Vivos

Hibah merupakan salah satu prinsip dalam muamalah Islam yang diamalkan di institusi–institusi kewangan Islam di Malaysia. Tujuan artikel ini adalah untuk membincangkan pemakaian prinsip hibah dalam Sistem Kewangan Islam di Malaysia, iaitu institusi perbankan Islam dan takaful. Bagi memperolehi data primer mengenai aplikasi prinsip hibah di dua institusi kewangan Islam tersebut, penulis telah menjalankan temu bual dengan individu yang berautoriti di Bahagian Syariah Bank Negara Malaysia, Jabatan Pematuhan Syariah di Etiqa Takaful Bhd dan Takaful Ikhlas Sdn. Bhd. Penulis mendapati bahawa prinsip hibah, walaupun tidak dianggap sebagai prinsip utama, namun ia diaplikasikan sebagai prinsip sokongan dalam aktiviti–aktiviti muamalah Islam di Institusi Kewangan Islam di Malaysia. Kata kunci: Hibah; sistem kewangan Islam; muamalah Islam; perbankan Islam; takaful; undang–undang Islam Hibah (gift inter vivos) is one of the principles of Islamic transaction that are applied at Islamic Financial Institutions in Malaysia. The purpose of this article is to discuss the application of hibah in Islamic banking as well as the takaful. In the collection of data on the application of hibah at these Islamic institutions, the writer has conducted interviews with authoritative persons at the Shariah Division Bank Negara Malaysia, the Shariah Compliant Department at Etiqa Takaful Bhd and the Takaful Ikhlas Sdn. Bhd. The writer found that even though hibah is not considered as a core principle, but it is applied as a support principle in Islamic transaction activities in the institutions of Islamic Finance in Malaysia. Key words: Gift inter vivos; Islamic financial system; Islamic transaction; Islamic banking; Islamic insurance; Islamic law

Islamic banking

2019 ◽  
pp. 358-403
Author(s):  
Narjess Boubakri ◽  
Ruiyuan Ryan Chen ◽  
Omrane Guedhami ◽  
Xinming Li
Keyword(s):  
Global Financial Crisis ◽  
Banking System ◽  
Empirical Literature ◽  
Islamic Finance ◽  
Future Research ◽  
Islamic Banking ◽  
The Public ◽  
Financial Products ◽  
The Global Financial Crisis ◽  
Global Growth

The last two decades have witnessed a tremendous global growth in Islamic finance and banking, mainly prompted by the global financial crisis. This growth has been accompanied by an increasing interest among researchers, policymakers, managers of financial institutions, and the public about the functionalities of the Islamic banking system and how it differs from conventional banking. Against this backdrop, we start this chapter with an overview and assessment of the practice of Islamic banking around the world. Then, we discuss its primary characteristics, including its underlying principles and common financial products. Next, we review the key findings in the empirical literature on the differences between Islamic and conventional banking at the micro and macro levels. We conclude with a discussion of avenues for future research.

scholarly journals MENINGKATKAN LITERASI PERBANKAN SYARIAH DENGAN MENGEMBANGKAN APLIKASI EDUKASI BERBASIS ANDROID

2020 ◽  
Vol 10 (2) ◽  
pp. 129
Author(s):  
Khoirul Anam ◽  
Lia Anggraini
Keyword(s):  
Market Share ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Consumer Loyalty ◽  
The Public ◽  
Banking Market ◽  
Before And After ◽  
Banking Education ◽  
Educational Applications

The overall market share of Islamic finance is still below 5% of the total national banking market share. One reason is consumers or the public is still lack of knowledge, understanding and consumer loyalty that is still low on Islamic banks. This research develops an android-based educational application and tests the effectiveness of the application on improving the knowledge of employees of the Baitul Yataama Fadlan Foundation about Islamic banking. Respondents used educational applications and studied Islamic banking content for 2 days. Before and after the respondents used the application, a survey was conducted by asking various questions. The survey aims to see the knowledge of respondents before and after the use of the application, whether there is a significant increase. The results of the first survey using a questionnaire showed results of 47%. Then a second survey was conducted with a result of 67%. There is an increase in the percentage of respondents who answered knowing of Islamic banking by 20%. It can be concluded that the application of Islamic banking education has a significant effect in increasing the knowledge of the respondents.

scholarly journals Islamic banking’s contribution to the Malaysian real economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ibrahim Musa Gani ◽  
Zakaria Bahari
Keyword(s):  
Banking Sector ◽  
Causal Effect ◽  
Financial System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Real Economy ◽  
Data Set ◽  
Content Type ◽  
The Real ◽  
Banking Development

Purpose Malaysia is one of the fastest-growing Asian economies with a properly designed and developed Islamic financial system. This unique feature of the Malaysian economy made it an important case study, and the purpose of this study is to assess for the dynamic contribution of Islamic finance to the growth of the real economy. Design/methodology/approach The study uses a quarterly data set of 20 years analysed via the autoregressive distributive lag bounds test approach to cointegration. Findings The results in the short-run show a non-significant relationship between Islamic banking indices and the real economy. However, in the long-run, financing and deposits of Islamic banks are favourable and contribute significantly to the growth of the Malaysian economy. There was an accumulation of meaningful and wide-ranging investment over the period of the study and productivity of capital was also extra-efficient. The direction of causality is found to be bidirectional between Islamic banking deposits and Malaysian gross domestic product (GDP), but there is a weak causal effect from Islamic banking financing to GDP. Research limitations/implications Malaysia has a dual financial system (conventional and Islamic) and both can affect its real economy. This research is limited to Islamic banking’s effects on Malaysian economic growth. The research also limits the scope and coverage for 20 years, from 1998 to 2017 to cover the years for which data is available for all the variables used in the study. Practical implications The results confirm that the Islamic banking sector in Malaysia is performing well in carrying out its major function of financial intermediation, which is the pooling and channelling of funds to productive investment activities. Consequently, the fact that Malaysia excels in Islamic finance is not a fluke. It is because of the effective performance of Islamic financial institutions in the country. Furthermore, Malaysian authorities are doing their level best in promoting Islamic financial activities. Originality/value The study fulfills the need to uncover the relationship between the Islamic financial system and the real economy in Malaysia. It differs from other studies as it uses the most recent available data, introduces new variables and identifies the channel by which Islamic banking development transmits growth.

scholarly journals Islamic Banking Products: Regulations, Issues and Challenges

2013 ◽  
Vol 29 (4) ◽  
pp. 1145 ◽  
Author(s):  
Nooraslinda Abdul Aris ◽  
Rohana Othman ◽  
Rafidah Mohd Azli ◽  
Mardiyyah Sahri ◽  
Dzuljastri Abdul Razak ◽  
...  
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Annual Growth Rate ◽  
The Public ◽  
Evolutionary Phase ◽  
Islamic Insurance ◽  
Increasing Trends ◽  
Double Digit

The Islamic world is in its evolutionary phase. Islamic finance whichcomprises the banking system, takaful (Islamic insurance) and capital market productsand services offer an alternative to society. The development is said to bephenomenal with a double-digit annual growth rate since its inception. McKinsey & Company (2007) in his study stated thatthe value of Islamic banking assets and assets under Islamic management isexpected to reach USD1 trillion by 2010, with Islamic banks growing morerapidly than the average banking sector in most countries. As of 2009,worldwide assets under shariah compliance grew four times from 0.5% to 2% ofthe world economy and reached MYR3.5 trillion (PEMANDU,2010). With the increasing trends of Islamic finance, Islamic financialinstitutions (IFIs) around the world are encouraged to develop and innovate newproducts in order to meet the ever-changing demand from its customers andpotential customers. The introduction of new Islamic products does impose somechallenges, not only to the practitioners and Shariah council members, butalso to society at large, as they are the ultimate users of the product. Thispaper aims to look at the development and regulations of new Islamic banking productswith focus given more on Islamic house financing. Such developments bring aboutvariation in the products introduced to the public as different contracts are adopted.The focus will be mainly on IFIs operating and regulated in Malaysia withspecific enforcement by the countrys regulators.

Financial Economics: Islamic Finance in Europe: Towards a Plural Financial System

2013 ◽  
Vol 51 (4) ◽  
pp. 1198-1199
Author(s):  
Rodney Wilson
Keyword(s):  
Financial Stability ◽  
Law And Economics ◽  
Arab World ◽  
Financial System ◽  
Moral Economy ◽  
Interdisciplinary Approach ◽  
Islamic Finance ◽  
Islamic Banking ◽  
The European Union ◽  
The Veil

Rodney Wilson of Emeritus Professor, Durham University reviews, “Islamic Finance in Europe: Towards a Plural Financial System” by Valentino Cattelan. The Econlit abstract of this book begins: “Fifteen papers investigate Islamic finance in Europe as part of a plural financial system in the current age of globalization, through a multi- and interdisciplinary approach to law and economics. Papers discuss law as a kite—managing legal pluralism in the context of Islamic finance; a glimpse through the veil of Maya—Islamic finance and its truths on property rights; Islamic moral economy as the foundation of Islamic finance; financial stability and economic development—an Islamic perspective; Islamic banking contracts and the risk profile of Islamic banks; the economic impact of Islamic finance and the European Union; migrant banking in Europe—approaches, meanings, and perspectives; women's empowerment and Islam—open issues from the Arab world to Europe; Islamic banking in the EU legal framework; regulating Islamic financial institutions in the United Kingdom; Luxembourg—a leading domicile for Shari'ah compliant investments; managing Islamic finance vis-à-vis laïcité—the case of France; a critical view on Islamic finance in Germany; the development of Islamic banking in Turkey—regulation, performance, and political economy; and the move toward a plural financial system. Cattelan is Lecturer in Islamic Finance at the University of Rome ““Tor Vergata.””

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