scholarly journals THE URGENCY OF FATWA IN THE LAW OF SHARIA ECONOMICS IN INDONESIA

2021 ◽  
Vol 20 (2) ◽  
pp. 201
Author(s):  
Elsy Renie
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Rapid Development ◽  
Economic Activities ◽  
Financial Products ◽  
The People ◽  
The Law

Fatwas of the National Sharia Council-Indonesian Ulama Council (DSN-MUI), in the field of sharia economics, has filled the legal vacuum related to the economic activities of the people. The increased of activity in the Mu'amalah area which is so fast requires a responsive fatwa. It can be seen from the rapid development of financial products for sharia financial institutions today. The legal strength of a fatwa is non-binding because it is not included in the constitution hierarchy in Indonesia which has caused debate for some people. But, several DSN-MUI fatwa have been transformed into part of national law, such as constitution No. 21 of 2008 concerning Banking, and some of which have also been absorbed into Bank Indonesia regulations, Syari'ah Financial Services Authority Regulation (OJK). This paper tries to analyze the role of fatwas in filling the legal vacuum in the development of the shari'ah economy in Indonesia and how the fatwas of the DSN-MUI can be transformed into national law. The author concludes that the role of DSN-MUI as the only institution that issued a fatwa related to the activities of shari'ah financial institutions in Indonesia is very important in the area of national legal politics.

scholarly journals Role of Financial Service Authorities on Legal Protection of The Sharia Banks Customers in Indonesia

Rechtsidee ◽  
2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Sri Astutik
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Legal Protection ◽  
Financial Service ◽  
Standard Of Living ◽  
Bank Supervision ◽  
The People ◽  
Optimal Protection

Sharia Bank  is a bank that runs its business activities based on sharia principles, in the collection of funds and the distribution of funds, in order to serve the needs of society and improve the standard of living of the people. Various banking problems,  such  as not yet optimal protection of consumer financial services (bank customers), therefore it is necessary to supervise the operational banking activities. The purpose of bank supervision is to protect the interest of the savers who entrust their funds to the bank. Based in Law Number 21 of 2011 on the Authority of Financial Services, the arrangement and supervision of financial institutions becomes the authority of the Financial Services Authority. This supervision is also applied to banks with sharia  principles. In this paper will discuss  the Financial Services Authority oversight in the application of the principle of legal protection for customers in sharia banks.

scholarly journals Financial Inclusion and Saving Culture of Individuals in Uganda: A Case of Central Division, Kabale Municipality

2020 ◽  
Author(s):  
Isaac Musinguzi ◽  
Ayebare Richard ◽  
Elizabeth Muwanguzi
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Inclusion ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Central Division ◽  
Financial Products ◽  
The People ◽  
The Relationship

Abstract The study was about Financial Inclusion and savings in Uganda. A case of central division, Kabale Municipality. Financial Inclusion seeks to overcome the friction that hinders markets from expanding access to, and use of formal financial products and services to a broad number of people. The Objectives of the study were; to examine how access to financial services affects deposits made to formal financial institutions, to find out the effect of usage of financial services on deposits made to formal financial institutions and; to investigate the relationship between quality of financial services available and deposits made to formal financial institutions. The study adopted a cross-sectional survey research design. A sample size of 390 respondents from a population of 15,092 people was used. Findings of the study established a direct positive relationship between Financial Inclusion and savings. The regression results showed that savings as measured by percentage of the respondent’s monthly income earnings that is saved, was influenced by Access to formal financial products and services (p=0.031), usage of formal financial products and services (p=0.015) and Quality of formal financial products and services (p=0.021). The independent variables in the regression model with positive coefficient showed a direct relationship with the dependent variable. Therefore, the study concluded that savings increases proportionately with more access to formal financial products, usage and increase in quality of formal financial products. The study also recommended that financial institutions should create financial products which are tailored to fit various individual needs. Again, these financial institutions should create many outlets through Agent Banking and this would prevent the people from saving in their homes and rather save with the financial institutions since savings do not benefit only the individuals but the economy as a whole.

scholarly journals The features of the legal status of the operator of the information system in which digital financial assets are issued, and of the operator of the exchange of digital financial assets as organizations that provide digital financial technologies

2021 ◽  
pp. 124-134
Author(s):  
T. E. Rozhdestvenskaya ◽  
A. G. Guznov
Keyword(s):  
Information System ◽  
Financial Institutions ◽  
Financial Services ◽  
Legal Status ◽  
Rapid Development ◽  
Digital Technologies ◽  
Financial Assets ◽  
New Type

The rapid development of digital technologies has led to the emergence of several new types of financial institutions in Russia recently, which, by using digital financial technologies, create additional opportunities for recipients of financial services. Such entities, in particular, include the operator of the information system in which the digital financial assets are issued, and the operator of the exchange of digital financial assets. The article analyzes the features of their legal status as a new type of non-banking financial organizations. Particular attention is paid to the requirements of the current legislation to these organizations. The article also analyzes the role of Bank of Russia in the supervision of their activities. 

scholarly journals Information Asymmetry and Trust: A Framework for Studying Microfinance in India

2005 ◽  
Vol 30 (4) ◽  
pp. 77-86 ◽  
Author(s):  
M S Sriram
Keyword(s):  
Social Networks ◽  
Transaction Costs ◽  
Rural Areas ◽  
Financial Services ◽  
Imperfect Information ◽  
Informal Networks ◽  
The Poor ◽  
The People ◽  
Financial Transactions

In recent times, microfinance has emerged as a major innovation in the rural financial marketplace. Microfinance largely addresses the issue of access to financial services. In trying to understand the innovation of microfinance and how it has proved to be effective, the author looks at certain design features of microfinance. He first starts by identifying the need for financial service institutions which is basically to bridge the gap between the need for financial services across time, geographies, and risk profiles. In providing services that bridge this gap, formal institutions have limited access to authentic information both in terms of transaction history and expected behaviour and, therefore, resort to seeking excessive information thereby adding to the transaction costs. The innovation in microfinance has been largely to bridge this gap through a series of trustbased surrogates that take the transaction-related risks to the people who have the information — the community through measures of social collateral. In this paper, the author attempts to examine the trajectory of institutional intermediation in the rural areas, particularly with the poor and how it has evolved over a period of time. It identifies a systematic breach of trust as one of the major problems with the institutional interventions in the area of providing financial services to the poor and argues that microfinance uses trust as an effective mechanism to address one of the issues of imperfect information in financial transactions. The paper also distinguishes between the different models of microfinance and identifies which of these models use trust in a positivist frame and as a coercive mechanism. The specific objectives of the paper are to: Superimpose the role of trust in various types of exchanges and see how it impacts the effectiveness of repeated transactions. While greater access to information fosters trust and thus helps social networks to reduce transaction costs, there could be limits to which exchanges could solely depend on networks and trust. Look at the frontiers where mutual trust cannot work as a surrogate for lower appraisal costs. Use an example in the Canadian context and see how an entity that started on the basis of social networks and trust had to morph into using the techniques used by other formal nonneighbourhood institutions as it grew in size and went beyond a threshold. Using the Canadian example, the author argues that as the transactions get sophisticated, it is possible to achieve what informal networks have achieved through the creative use of information technology. While we find that the role of trust both in the positivist and the coercive frame does provide some interesting insights into how exchanges with the poor could be managed, there still could be breaches in the assumptions. This paper identifies the conditions under which the breaches could possibly happen and also speculates on the effect of such breaches.

scholarly journals MENYIKAPI GLOBALISASI HUKUM TANAH DENGAN KEARIFAN LOKAL

2019 ◽  
Vol 10 (2) ◽  
pp. 219
Author(s):  
Rina Rohayu H
Keyword(s):  
Secondary Data ◽  
Developed Countries ◽  
Land Law ◽  
Legal Intervention ◽  
The People ◽  
The Law ◽  
Globalization Of Law ◽  
The Republic ◽  
Customary Land

Land given to and owned by people with rights provided by the UUPA is to be used and utilized. The granting and possession of land with these rights will not be meaningful if its use is limited to land as the surface of the earth. The land also has a significant role in the dynamics of development. According to the 1945 Constitution of the Republic of Indonesia NRI,  "earth and water are natural resources contained therein controlled by the state and used for the greatest prosperity of the people." This research uses a normative juridical approach that is research based on the rules / according to the law because this research focused on the use of document studies and literature or secondary data. The research specification used is descriptive-analytic, which describes the law of the land in the era of globalization based on local wisdom. The results of the study illustrate that the role of the land ruling state, which used for the prosperity of the people, is regulated under Law No. 5 of 1960 concerning Basic Regulations on Agrarian Principles (UUPA).On the other hand, the globalization of law is nothing more than a legal intervention from developed countries towards developing countries in order to adjust their laws globally. One way to address the problem of globalization of land law is to reaffirm local wisdom. In other words, they are upholding the customary provisions related to land. Example: provisions of customary land. Customary land is communal land that is jointly owned and thus does not need to be certified.Keywords: globalization, land law, local wisdomABSTRAKTanah diberikan kepada dan dipunyai oleh orang dengan hak-hak yang disediakan oleh UUPA, adalah untuk digunakan dan dimanfaatkan. Diberikannya dan dipunyainya tanah dengan hak-hak tersebut tidak akan bermakna, jika penggunaannya terbatas hanya pada tanah sebagai permukaan bumi saja. Tanah juga mempunyai peranan yang besar dalam dinamika pembangunan. Undang-undang Dasar 1945 menjelaskan bahwa “Bumi dan air dan kekayaan alam yang terkandung didalamnya dikuasai oleh negara dan dipergunakan untuk sebesar-besar kemakmuran rakyat.” Penelitian ini menggunakan pendekatan yuridis normatif yaitu penelitian yang didasarkan kepada kaidah-kaidah/menurut hukum, oleh karena penelitian ini dititik-beratkan pada penggunaan studi dokumen dan bahan pustaka atau data sekunder. Spesifikasi penelitian yang digunakan adalah deskriptif analitis yang menggambarkan tentang hukum tanah di era globalisasi berdasarkan kearifan lokal. Hasil penelitian menggambarkan bahwa peran negara penguasa tanah yang digunakan untuk kemakmuran masyarakat diatur berdasarkan Undang-undang No. 5 tahun 1960 tentang Peraturan Dasar Pokok-Pokok Agraria (UUPA). Disisi lain, globalisasi hukum tak lebih sebagai intervensi hukum dari negara maju terhadap negara berkembang agar menyesuaikan hukumnya secara global. Salah satu cara menyikapi persoalan globalisasi hukum tanah ini adalah dengan menegaskan kembali kearifan lokal. Dengan kata lain, menegakkan kembali ketentuan-ketentuan adat terkait dengan tanah. Misalnya ketentuan tanah ulayat. Tanah ulayat merupakan tanah komunal milik bersama, dengan demikian tidak perlu disertifikatkan.

scholarly journals A Study of Investment Behavior of Households in Virudhunagar District

2015 ◽  
Vol 6 (2) ◽  
pp. 19
Author(s):  
M. Selvakumar ◽  
N. Manicka Mahesh
Keyword(s):  
Financial Institutions ◽  
The Other ◽  
Investment Behavior ◽  
Household Savings ◽  
Economic Activities ◽  
Risk And Return ◽  
The People ◽  
Current Consumption ◽  
Level Of Knowledge ◽  
And Behavior

Investment of hard earned money is a crucial activity of every human being. Investment is the commitment of funds which have been saved from current consumption with the hope that some benefits will be received in future. Thus, it is a reward for waiting for money. Savings of the people are invested in assets depending on their risk and return demands, safety of money, liquidity, the available avenues for investment, various financial institutions, etc. On the other hand, the savings provide capital to industry, economic development to the country. In developing country like India, household savings is the major source of capital for economic activities. The study helps to understand the knowledge and behavior of households, the major provider of funds to economic activities of the country. Hence, a study of investment behavior of households has made with the objective of understanding the level of knowledge of households about investment.

How Customer Analytics and Digital Technologies Drive Banks to Understand Consumer Awareness Towards Financial Inclusion

2018 ◽  
pp. 66-85
Author(s):  
Yuvraj Sharma
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Digital Technologies ◽  
Financial Inclusion ◽  
Primary Data ◽  
Related Data ◽  
Customer Analytics ◽  
Clear Communication ◽  
Increasing Demand

In today's switching economy, customers' needs are changing and they are demanding more transparency, higher involvement, and clear communication in day-to-day banking processes. The rationale behind carrying out the present research is to identify the role of customer analytics in the new digital customer journey in terms of enhancing their engagement, loyalty, and satisfaction. The present research emphasizes opportunities that would accrue to financial institutions after demonetization and collecting large amount of demographics, customer transaction, and account-related data. Primary data was collected from 300 customers through a structured questionnaire to know their perceptions about the role of customer analytics and digital technologies to build their confidence and capability to use financial services. This study brings out the customer analytics trends and identifies the reasons due to which banks are struggling to keep pace with the increasing demand of both digital savvy and traditional consumers.

Cause and consequence in law and development

2005 ◽  
Vol 43 (1) ◽  
pp. 119-138 ◽  
Author(s):  
Ambreena Manji
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Land Reform ◽  
International Financial Institutions ◽  
Land Law ◽  
The West ◽  
Law And Development ◽  
The Law

Patrick McAuslan, Bringing the Law Back In: essays in land, law and development (Aldershot: Ashgate. 2003)The title of the book sums up my overall stance: there is an important role for law in development generally and in land reform in particular and it is, in my view, wholly beneficial that after almost three decades of virtually ignoring the role of law in development … international financial institutions, aid agencies and scholars in the West are beginning to appreciate and reaffirm both its centrality to development in practice and its centrality to understanding the process of development and change in societies in developing countries. (McAuslan 2003: vii)He who is able to translate others' interests into his own language carries the day. (Latour 1983: 144)

scholarly journals The role and importance of internal control and internal audit in the prevention and identification of fraudulent actions in banks

Bankarstvo ◽  
2021 ◽  
Vol 50 (1) ◽  
pp. 66-89
Author(s):  
Snežana Knežević ◽  
Aleksandar Živković ◽  
Stefan Milojević
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Internal Control ◽  
Financial Services ◽  
Internal Audit ◽  
Financial Sector ◽  
Business Environment ◽  
Efficient Management ◽  
Range Of Functions

Modern banks have a specific role and a whole range of functions of paramount importance, as financial institutions for granting loans, creating loans, mobilizing savings and economic development. In the financial sector, there is a growing number of people who are using increasingly innovative and creative ways of targeting all perceived weaknesses in banks and credit approval systems. The persons committing fraud have become increasingly sophisticated, which means that measures to prevent fraud must be constantly developed to ensure that they are able to deal with the threat. The fight against fraud is crucial for financial services institutions. This article aims not only to briefly describe the role of internal control and internal audit in detecting possible fraud in banks, as profit-oriented organizations in today's complex and highly changing business environment, but also to point out the advantages they have in the more efficient management of bank activities.

scholarly journals Financial Inclusion, Awareness, and Understanding of Financial Products among People Selected Gewogs (Blocks) of Bhutan

2019 ◽  
Vol 8 (11S2) ◽  
pp. 485-494
Keyword(s):  
Financial Services ◽  
Financial System ◽  
Secondary Data ◽  
Primary Objective ◽  
Financial Inclusion ◽  
Primary Data ◽  
Journal Articles ◽  
Financial Products ◽  
The People ◽  
Survey Finding

The financial products that are being offered by the banks in the contemporary era are significant to enhance the primary objective of the banks that is, ‘Financial Inclusion’ (FI). However, due to umpteen reasons, the banks in many countries have failed streamlining the poor and the majority of the rural folk. Bhutan is not an exception as it is in a landlocked country. The Survey finding (2013) depicted a smaller share of Bhutanese involvement in the formal financial system (48%) whereas larger percentage of them involved in informal financial system. Further, the present Governor of Royal Monetary Authority (The central bank of the country), Dasho Penjor in his discussion on the review of His Majesty’s address on 109th National day Celebration in Trongsa stated that the majority of the rural folks are unable to avail banking services extended by the formal institutions. Besides, financial services can be availed by mass only when banks and other financial institutions run some awareness programmes. There are a few literature on FI in Bhutan in general; however literature on the awareness and understanding of financial products of the people are minimal in the country. The present study, therefore, investigates the scenario of FI along with awareness and understanding of financial products of commercial banks among Bhutanese in four Gewogs (Blocks) of the country that is, Bongo, Chapcha, Darla and Samphelling. The structured questionnaire was designed and primary data from 378 respondents were collected. Further, various articles and papers published in survey findings, magazines, and journal articles are used as secondary data sources of the study. The collected data have been tabulated, analysed, and interpreted with the help of Descriptive statistics, Independent t-test and Analyses of Variance (ANOVA).

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