scholarly journals VIABILITY OF ISLAMIC BANKING AND FINANCE IN SOUTH AFRICA: A LOOK AT THE LEGAL FRAMEWORK AND GOVERNANCE

2012 ◽  
Vol 18 (2) ◽  
Author(s):  
Moegamat Igshaan Taliep ◽  
Rusni Hassan ◽  
Adnan Yusoff
Keyword(s):  
South Africa ◽  
South African ◽  
Total Population ◽  
Legal Framework ◽  
Practical Implementation ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Population ◽  
Banking And Finance ◽  
Start Up

South Africa has a total Muslim population of more than 1 million people representing 2.1% of total population (Islamic Finance News, 27th October 2010), thus creating the demand for Islamic banking and finance. Though the concept of Islamic banking in South Africa can be traced back to several decades, the practical implementation only started in late 1980s with slow initial start up. Presently, while the industry is relatively modest in term to figures, Islamic banking is strategically important for economic development of the country. South African Islamic banking is set to expand at a rapid rate as the new players identify huge opportunity in the country. However, Islamic banks face a series of challenges in the South African market. Increasing framework are the significant challenges for all institutions in the Islamic banking markets. This paper looks at the challenges of the legal framework and governance in implementing Islamic banking and finance in South Africa.

scholarly journals Consumer awareness and usage of islamic banking products in South Africa

2011 ◽  
Vol 14 (3) ◽  
pp. 298-313 ◽  
Author(s):  
Yvonne Saini ◽  
Geoff Bick ◽  
Loonat Abdulla
Keyword(s):  
South Africa ◽  
South African ◽  
Sampling Method ◽  
Islamic Banking ◽  
South African Context ◽  
Islamic Banks ◽  
Consumer Awareness ◽  
African Context ◽  
Automatic Teller Machines ◽  
Conventional Banks

This paper investigates the level of consumer awareness and use of Islamic banking products in South Africa. A non-probability sampling method was used whereby a questionnaire was administered to 250 respondents and statistically analysed to determine the factors that are important in the choice between Islamic or conventional banks. It was found that Muslims are aware of Islamic banks, but their rate of use is low, as Muslim customers regard efficiency, lower bank charges, the availability of automatic teller machines and an extensive branch network as important factors when it comes to choosing a bank, rather than religious motivations for compliance with Islamic conventions. It was concluded that, if Islamic banks wanted to attract and retain customers and remain relevant in the South African context, they would have to develop relevant strategies designed to meet customers’ needs. Religion as the sole motivation for  choosing Islamic banks is inadequate.

scholarly journals Islamic Studies in South Africa

1994 ◽  
Vol 11 (2) ◽  
pp. 274-281
Author(s):  
Tamara Sonn
Keyword(s):  
South Africa ◽  
South African ◽  
Total Population ◽  
Muslim Community ◽  
Muslim Population ◽  
South Africans ◽  
Islamic Studies ◽  
The Third ◽  
Northern India ◽  
Arabic Script

Background of South African IslamIn 1994, South Africans will celebrate three centuries of Islam inSouth Africa. Credit for establishing Islam in South Africa is usuallygiven to Sheikh Yusuf, a Macasser prince who was exiled to South Africafor leading the resistance against the Dutch colonization of Malaysia. Thefitst Muslims in South Africa, however, were actually slaves who hadbeen imported, beginning in 1677, mainly from India, the Indonesianarchipelago, Malaysia, and Sri Lanka, by the Dutch colonists living in theCape. The Cape Muslim community, popularly but inaccurately knownas "Malays" and known under apattheid as "Coloreds," is the oldest Muslimcommunity in South Africa. The other major Muslim community wasestablished over a century later by indentured laborers and tradespeoplefrom northern India, a minority of whom weae Muslims. The majority ofSouth African Indian Muslims, classified as "Asians" or "Asiatics," nowlive in Natal and Tramvaal. The third ethnically identifiable group, classifiedas "Aftican" or "Black," consists mainly of converts or theirdescendants. Of the entire South African Muslim population, roughly 49percent are "Coloreds," nearly 47 pement are "Asians," and, although statisticsregarding "Africans" ate generally unreliable, it is estimated thatthey are less than 4 percent. Less than 1 percent is "White."Contributions to South African SocietyAlthough Muslims make up less that 2 petcent of the total population,their presence is highly visible. There ate over twenty-five mosques inCape Town and over one hundred in Johannesburg, making minarets asfamiliar as church towers Many are histotic and/or architectuml monuments.More importantly, Muslims ate uniquely involved in the nation'scultwe and economy. The oldest extant Afrikaans-language manuscriptsare in the Arabic script, for they ate the work of Muslim slaves writingin the Dutch patois. South African historian Achrnat Davids has tracedmany linguistic elements of Afrikaans, both in vocabulary and grammar,to the influence of the Cape Muslims. Economically, the Indian Muslimsaxe the most affluent, owing primarily to the cirmmstances under whichthey came to South Africa. Muslim names on businesses and buildingsare a familiar sight in all major cities and on those UniveAty campusesthat non-Whites were allowed to attend during apartheid ...

scholarly journals Dispute Resolution for Islamic Banks in Indonesia

2021 ◽  
Vol 4 (SI) ◽  
Author(s):  
Atharyanshah Puneri
Keyword(s):  
Dispute Resolution ◽  
Alternative Dispute Resolution ◽  
Legal Framework ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Finance Industry ◽  
Positive Law ◽  
Islamic Financial Institutions ◽  
Dispute Resolution Mechanism

The rapid growth of Islamic banking and finance industry demanded an improvement in term of standards, frameworks, policy, technologies, resources, and guidelines in order to go beyond without compromising the core values of Islam itself. In the context of legal framework of Islamic banking and finance, it is most likely this industry needs to be highly regulated in order to avoid manipulation and abuse by the irresponsible parties. One of the crucial issue in the area of Islamic Banks in Indonesia is regarding about the dispute resolution mechanism for Islamic Banks. Based on Indonesian positive law, there are two alternative dispute resolution mechanisms that can be exercised by parties to settle disputes in cases involving Islamic Financial Institutions (IFIs) namely through litigation or non-litigation. Litigation comes under the jurisdiction of the Religious Court. Researcher in this study are look deeper into the dispute resolution mechanism for Islamic Banks in Indonesia, as well as going through some decided cases. And based on the study done, it was found that alternative dispute resolution mechanism is more effective to resolve Islamic Banks dispute rather than litigation. In the future, researchers may conduct more research to examine deeper about the dispute resolution mechanism for the whole Islamic Economics and Finance in Indonesia. Moreover, researchers need to look at the regulators' and legislators’ perception towards dispute resolution and legal environment.

Middle East and Islamic Studies in South Africa

1994 ◽  
Vol 28 (1) ◽  
pp. 14-17
Author(s):  
Tamara Sonn
Keyword(s):  
South Africa ◽  
South African ◽  
Total Population ◽  
Muslim Community ◽  
African Government ◽  
Muslim Population ◽  
South Africans ◽  
Islamic Studies ◽  
Indonesian Archipelago ◽  
Black Muslims

Although muslims make up less than two percent of South Africa’s total population, they are a well-established community with high visibility. In 1994 South Africans will celebrate 300 years of Islam in South Africa. The introduction of Islam to South Africa is usually attributed to Sheikh Yusuf, a Macasser prince exiled to South Africa for leading resistance against Dutch colonization in Malaysia. But the first Muslims in South Africa were actually slaves, imported by the Dutch colonists to the Cape mainly from India, the Indonesian archipelago, Malaya and Sri Lanka beginning in 1667. The Cape Muslim community, popularly but inaccurately known as “Malays” and known under the apartheid system as “Coloureds,” therefore, is the oldest Muslim community in South Africa. The other significant Muslim community in South Africa was established over 100 years later by northern Indian indentured laborers and tradespeople, a minority of whom were Muslims. The majority of South African Indian Muslims now live in Natal and Transvaal. Indians were classified as “Asians” or “Asiatics” by the apartheid system. The third ethnically identifiable group of Muslims in South Africa were classified as “African” or “Black” by the South African government. The majority of Black Muslims are converts or descendants of converts. Of the entire Muslim population of South Africa, some 49% are “Coloureds,” nearly 47% are “Asians,” and although statistics regarding “Africans” are generally unreliable, it is estimated that they comprise less than four percent of the Muslim population. Less than one percent of the Muslim population is “White.”

scholarly journals A Review: Product Pricing of Islamic Banking in Indonesia

2021 ◽  
Vol 6 (3) ◽  
pp. 84-91
Author(s):  
Radia Purbayati ◽  
Kurnia Fajar Afgani ◽  
Agil Krisna Rivanda
Keyword(s):  
Literature Review ◽  
Interest Rates ◽  
Total Population ◽  
Profit Sharing ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Population ◽  
Product Pricing ◽  
Operational Activities

Indonesia is a country with the largest Muslim population in the world with a Muslim population reaching 87% of the total population. This is an opportunity for Islamic Banks to be able to grow and develop as a bank with the concept of a profit-sharing bank. It is appropriate for all operational activities, including pricing stipulations for Islamic banking products, to be free from the element of interest (interest rate free). However, in practice, there are still pricing stipulations in Islamic banking products that benchmark interest rates. This study aims to review the pricing determination of Islamic banking products in Indonesia. The method used in this research proposal is a literature review. The literature review produced several alternative purposed for the Islamic Pricing Benchmarking method as a benchmark that can be used by Islamic banking in determining the pricing of its products.

Litigation or Arbitration for Resolving Islamic Banking Disputes

2018 ◽  
Vol 32 (4) ◽  
pp. 413-438
Author(s):  
Farouq Saber Al-Shibli
Keyword(s):  
Dispute Resolution ◽  
Financial Market ◽  
Current Practice ◽  
Legal Framework ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking And Finance ◽  
Financial Products ◽  
Alternative Method ◽  
Unique Nature

Abstract When investors decide to deal with Islamic banks, one of their main concerns is to ensure their businesses are protected in the case of disputes arising. For this reason, developing a good legal framework for resolving disputes is crucial to strengthen the position of Islamic banks in the global financial market. However, the unique nature of Islamic financial products and transactions requires that the disputes arising from this sector should not be dealt with by means of conventional laws and courts (litigation). It can be said that current practice, where Islamic banking and finance disputes are resolved by litigation with lopsided judgments is counterproductive to the practice of Islamic banking and finance. This article therefore explores the problems associated with resolving Islamic banking disputes through litigation and proposes arbitration as an alternative method for establishing a legal framework for dispute resolution in countries where Islamic banking is implemented.

Islamic Banking and Finance in Theory and Practice

2005 ◽  
Vol 22 (2) ◽  
pp. 69-86 ◽  
Author(s):  
Abdus Samad ◽  
Norman D. Gardner ◽  
Bradley J. Cook
Keyword(s):  
Financial System ◽  
Primary Objective ◽  
Theory And Practice ◽  
Islamic Banking ◽  
Relative Importance ◽  
Islamic Banks ◽  
Equity Financing ◽  
Banking And Finance ◽  
Financial Products ◽  
Islamic Bank

This paper’s primary objective is to identify the relative importance of various Islamic financial products, in theory and in practice, by examining the financing records of the Bank Islam Malaysia (Berhad) and the Bahrain Islamic Bank. Currently, seven available Islamic financing products are considered viable alternatives to interest-based conventional contracts: mudarabah (trust financing), musharakah (equity financing), ijarah (lease financing), murabahah (trade financing), qard al-hassan (welfare loan), bay` bi al-thaman al-ajil (deferred payment financing), and istisna` (progressive payments). Among these financial products, mudarabah and musharakah are the most distinct. Their unique characteristics (at least in theory) make Islamic banks and Islamic financing viable alternatives to the conventional interest-based financial system. The question before us is to determine the extent of mudarabah and musharakah in Islamic financing in practice. The data are as follows: the average mudarabah is 5% of total financing, and the average musharakah is less than 3%. The combined average of mudarabah and musharakah for the two Islamic banks is less than 4% of the total finance and advances. The average qard al- hassan is about 4%, while istisna` does not yet exist in practice. Murabahah is the most popular and dominates all other modes of Islamic financing. The average use of murabahah is over 54%. When the bay` bi al-thaman al-ajil is added to the murabahah, the percentage of total financing is shown to be 2.68%. This paper also explores some possible reasons why these two Islamic banks appear to prefer murabahah to mudarabah and musharakah.

Gendered Lending Practices: Enabling South African Women Entrepreneurs to Access Start-Up Capital

2014 ◽  
Vol 22 (03) ◽  
pp. 313-330 ◽  
Author(s):  
Evelyn Derera ◽  
Pepukayi Chitakunye ◽  
Charles O'Neill ◽  
Amandeep Tarkhar-Lail
Keyword(s):  
South Africa ◽  
South African ◽  
Women Entrepreneurs ◽  
Financial Institution ◽  
African Women ◽  
Future Research ◽  
Snowball Sampling ◽  
Start Up ◽  
South African Women ◽  
Depth Interviews

This study explores gendered lending and marketing practices of start-up capital to women entrepreneurs in South Africa. A multi-method research design, comprising of 6 in-depth interviews with experts, and a survey of 50 women entrepreneurs was adopted using convenience and snowball sampling techniques, respectively. The findings revealed that women entrepreneurs are experiencing gendered discriminatory practices embedded in lending practices used by financial institutions, thereby discouraging them to venture into non-traditional industries. Whilst financial providers may know their products well, many emerging women entrepreneurs in South Africa may find it difficult and costly to obtain information on the thousands of financial products available. Hence, women entrepreneurs resort to taking greater risks than necessary in order to get their businesses off the ground. Educating women on financial matters is extremely important if South Africa is to benefit fully from the untapped entrepreneurial talent that women possess. The study adds voice to the discriminatory lending practices faced by women entrepreneurs in developing countries. Future research could explore the feasibility of establishing a financial institution which caters specifically for the needs of women.

scholarly journals Membangun Model Perbankan Syariah yang Transparan, Akuntanbel, Responsibility, Independensi dan Fairness Perspektif Pengetahuan (Survey Pada Perbankan Syariah di Propinsi Jambi)

2019 ◽  
Vol 4 (1) ◽  
pp. 62
Author(s):  
Mukhzarudfa Mukhzarudfa
Keyword(s):  
Corporate Governance ◽  
Large Population ◽  
Governance Structure ◽  
Islamic Banking ◽  
Muslim Population ◽  
Banking And Finance ◽  
Governance Model ◽  
Content Analysis Method ◽  
Banking Market ◽  
Professional Business

Jambi Province is one of the provinces with the largest Muslim population in Indonesia, with such a large population, Jambi Province should have been a pioneer and direction for the development of Islamic banking and finance in Indonesia. Nevertheless, the contribution of sharia business is still very low compared to conventional business, in 2016 the sharia banking market share is still less than 5%. For the development of sharia banking in the future, the specificity of the application of sharia principles in totality, demanding products and contracts of Islamic banking must have a link with real sector activities. This is where an understanding of governance and a professional business model and the aspects of muamalat fiqh are needed. Islamic banking as a modern banking needs to be managed with the principles of modern governance, which are in accordance with sharia principles, for this reason, this study tries to uncover and analyze how the model of sharia corporate governance implementation in sharia financial institutions. This study aims to explore the model of disclosure mechanism of sharia banking corporate governance in Jambi Province. The sample banks in the study consisted of 7 Islamic banks in Jambi Province. Research is done by using Qualitative Methods. Data analysis is done using the content analysis method. The results of the study show that for 2016, the sharia banking model that is transparent, accountable, responsive, independent and fairness analyzed can be grouped into four aspects, namely the regulatory aspects, organizational structure, process aspects and functions. From the aspects analyzed, it can be concluded that the Islamic commercial banks in implementing their governance show that bank management has implemented the principles of governance fairly well, in accordance with the provisions of the applicable legislation. And there are still significant weaknesses in the application of its sharia governance structure model. The sharia governance model that is built is to produce a sharia banking model that is transparent, accountable, responsible, independent and fairness that is applied in Jambi Province at the same time as the provisions that apply to sharia banking internationally.

KONDISI EKONOMI SYARIAH DI INDONESIA PASCA MERGERNYA BANK SYARIAH BUMN

2021 ◽  
Vol 5 (1) ◽  
pp. 90-106
Author(s):  
Angga Syahputra
Keyword(s):  
Market Share ◽  
Financial Services ◽  
Qualitative Method ◽  
Economic Conditions ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Population ◽  
Banking Market ◽  
The World ◽  
Financial Transactions

Indonesia has the largest Muslim population in the world. With this amount, of course, it should be a capital for economic strength. However, as of November 2020, data released by the Financial Services Authority put the Islamic banking market share at 6.33%. Efforts to merge the three state-owned Sharia banks into Indonesian Sharia Banks are expected to increase the penetration of the sharia economy in Indonesia, which is still far behind when compared to conventional domestic economic movements and Islamic financial transactions in other countries. This research will describe the extent of the sharia economic conditions in Indonesia after the merger of state-owned sharia banks into BSI. This study uses a qualitative method with a type of literature review research which is obtained from various authentic sources such as books, articles, journals and trusted websites. There was a 2.7% increase in the market share of Islamic banks after the merger. This increase when compared to the existing potential and the market is still very small. However, it is hoped that this impact will continue to increase over time, especially as capital support for various financial sectors and the halal industry in the country.

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