scholarly journals Implementation of the Concept of Al-'Uqûd Al-Murakkabah on Sharia Financial Institutions

2017 ◽  
Vol 1 (1) ◽  
pp. 31-44
Author(s):  
Atep Setiadi
Keyword(s):  
Qualitative Methods ◽  
Financial Institutions ◽  
Financial Institution ◽  
Financial Industry ◽  
Financial Transactions

This paper is intended to analyze philosophically about the existence of al-'Uqûd al-Murakkabah. This paper focuses its assessment on the opinions of scholars of hadith and fiqh (muamalah), as well as its application in Sharia Financial Institutions. This assessment is important because transactions in the form of a single contract are incapable of responding to the development of contemporary financial transactions that are always in motion and are influenced by the financial industry both nationally, regionally and internationally. Using qualitative methods and literature studies in this study it can be concluded that, first, fiqh muamalah contemporary in hadith traditions related to hybrid contract model there is a ban of two contracts in one transaction (bai'ataini fi bai'atin), ban two agreements in one The agreement (shafqa taini fi shafqatin) and the prohibition of the sale and purchase agreements and the ordering of goods (bay 'and salaf); second, the use of hybrid contracts at the Sharia Financial Institution is directed to the manufacture of al' Uqud al-Mutaqâbilah (Dependent or Conditional Contract).

scholarly journals DETERMINANT EFFICIENCY OF FINANCIAL INSTITUTIONS IN EMERGING MARKET

2019 ◽  
Vol 12 (2) ◽  
pp. 165
Author(s):  
Suwinto Johan
Keyword(s):  
Economic Growth ◽  
Panel Data ◽  
Capital Structure ◽  
Financial Institutions ◽  
Firm Size ◽  
Financial Institution ◽  
Emerging Market ◽  
Financial Ratios ◽  
Financial Industry ◽  
Finance Company

<p>The aim of this research is to analyze the determinants of non-bank financial institution efficiency. The non-bank financial industry is one of the main contributors to Indonesia economic growth during the last 15 years. The non-bank financial industry will the consumer finance company industry. The panel data used in this research is from 2001-2016.The non-bank financial industry is also measured as one the fastest raising industries in the last 16 years. Thesixmain financial ratios and related industry alliance impact the determinants of finance companies’ efficiency. The financial ratios are firm size, capital structure, equity, asset ratio, income to total assets and cost to total assets. The empirical results show that the determinants of non-bank financial institution are income to total assets and cost to total assets. </p>

Scope of Financial Institutions

2017 ◽  
Author(s):  
Gordon L. Clark ◽  
Ashby H. B. Monk
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Theory Of The Firm ◽  
Detailed Account ◽  
Rate Of Return ◽  
Financial Industry ◽  
Adjusted Rate

In expanding on the model introduced in Chapter 4, Chapter 5 delves deeper in its explanation about the scope of tasks and functions of financial institutions. In discussing Coase’s theory of the firm in the context of insourcing versus outsourcing, it explains the logic behind insourcing and outsourcing, and the geographical reach of financial institutions. Furthermore, it provides a more detailed account of the distinctive attributes of the financial institution as it pertains to the structure and governance of a firm. An explanation is provided of the representative financial institution as relating to the maximization of the risk-adjusted rate of return, how this is conceived and how its various elements drive the ‘production’ of the financial ‘product’. The imperatives behind offshoring are looked at, treating insourcing and outsourcing as expressions of geographical footprints and identifying a summary of current offshoring strategies in the financial industry along with emerging hybrid strategies and trends.

scholarly journals DAYA TAHAN BAITUL MAL WAT TAMWIL DALAM ARUS REVOLUSI INDUSTRI 4.0

2020 ◽  
Vol 14 (2) ◽  
pp. 77-90
Author(s):  
Eja Armaz Hardi
Keyword(s):  
Industrial Revolution ◽  
Financial Institution ◽  
Descriptive Analysis ◽  
Microfinance Institutions ◽  
Financial Industry ◽  
Middle Income ◽  
Transaction Process ◽  
Qualitative Descriptive ◽  
Financial Transactions ◽  
Financial Technology

Abstrak - Artikel ini bertujuan untuk menganalisa ketahanan Baitul Mal wat Tamwil (BMT) di dalam arus revolusi industri 4.0 pada bidang financial technology (fintech). BMT merupakan salah satu Lembaga Keuangan Mikro Syariah (LKMS) di Indonesia yang memiliki segmentasi konsumen spesifik yaitu masyarakat low-middle income dan tidak memiliki akses kepada perbankan (unbankable). BMT terbukti memiliki peran signifikan dalam membantu mengurangi tingkat kemiskinan di Indonesia dengan program pemberdayaan yang dimilikinya. Di saat bersamaan, proses manajemen yang berlaku pada BMT masih relatif berbelit dan panjang, seperti pendampingan pra-pembiayaan, proses pembiayaan dan pasca pembiayaan. Akan tetapi, satu dekade terakhir, perkembangan teknologi finansial (fintech) melakukan inovasi yang signifikan dalam bidang industri keuangan. Salah satu signifikansi dari inovasi fintech adalah mendistrupsi atau memotong jalur panjang administrasi yang berlaku selama di lembaga keuangan. Di samping itu ia juga menawarkan kecepatan, mobilitas dan akurasi proses transaksi keuangan masyarakat. Dengan menggunakan analisis deskriptif kualitatif, artikel ini menemukan bahwa, walaupun fintech menawarkan inovasi yang distrubtif dalam transaksi keuangan saat ini, BMT cenderung akan tetap bertahan dengan distingsi dan segmentasi yang dimilikinya. Akan tetapi, resistensi tersebut menjadi berbeda ketika penduduk Indonesia yang berusia di atas 65 tahun saat ini disubstitusi oleh generasi milenial pada tahun 2035. Oleh karena itu, artikel ini merekomendasikan bahwa untuk menghindari penurunan peran dalam membantu masyarakat menengah ke bawah dalam hal finansial, BMT harus menyesuaikan diri dengan melakukan inovasi, integrasi, interkoneksi dengan perusahaan fintech.    Abstract - This article aims to analyze the resilience of the Baitul Mal wat Tamwil (BMT) in the era of industrial revolution 4.0 in the field of financial technology (fin-tech). BMT is one of the Sharia Microfinance Institutions (LKMS) in Indonesia has specific consumer segmentation, namely low-middle income people and no access to banks (un-bankable). BMT has proven to have a significant role in helping to reduce poverty levels in Indonesia with its empowerment program. At the same time, the management processes that apply to BMTs are still relatively complicated and long, such as pre-financing assistance, financing processes and post-financing. However, in the last decade, the development of fin-tech has made significant innovations in the financial industry. One significance of fin-tech innovation is the distribution or cutting of the long administrative path that applies while at a financial institution. In addition, he also offers the speed, mobility and accuracy of the public financial transaction process. Using a qualitative descriptive analysis, this article finds that, although fin-tech offers constructive innovation in current financial transactions, BMTs will tend to survive with their distinction and segmentation. However, this resistance becomes different when the Indonesian population aged over 65 years would substituted by millennial generation in 2035. Therefore, this article recommends that in order to avoid reducing its role in helping the middle to lower financially, the BMT must adjust to innovation, integration, interconnection with fin-tech companies.  

scholarly journals Combating insider fraud in Financial Institutions/impact

2019 ◽  
Vol 14 ◽  
pp. 3351-3358
Author(s):  
Yaya Itai ◽  
Emmanuel Onwubiko
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Insider Threat ◽  
Sensitive Information ◽  
Financial Industry ◽  
Workplace Environment ◽  
Full Compliance ◽  
Emerging Trends ◽  
Gain Access ◽  
Do So

The fear of fraud is constant. Unfortunately, now more than ever before, fraud is being committed by employees on the inside, the very people who are supposed to be supporting and protecting an organization. Even though the financial industry is one of the most regulated, financial institution are still getting with the highest rate of internal fraud. Insider threat has always existed within each Financial Institution. In the recent years, insider threat has become a more prominent issue because of the emerging trends in the workplace. This change to a more flexible and productive workplace environment allows employees to easily gain access to an organization’s critical and sensitive information. While the risk of insider threat has certainly increased, Financial Institution have not deployed enough controls to mitigate this risk either because they believe that the frequency of such threat is very low or because they feel powerless to do so.  This paper tends to employ techniques that would abate the spate of Insider fraud and cybercrime on customer transactions and insider processing which is in full compliance with most regulatory mandate of Countries Government bank.

scholarly journals ANALISIS FIQH MUAMALAH TENTANG HYBRID CONTRACT MODEL DAN PENERAPANNYA PADA LEMBAGA KEUANGAN SYARIAH

2014 ◽  
Vol 10 (2) ◽  
Author(s):  
Ali Amin Isfandiar
Keyword(s):  
Financial Institutions ◽  
Hybrid Models ◽  
Islamic Banks ◽  
Financial Industry ◽  
Contemporary View ◽  
Islamic Financial Institutions ◽  
Financial Transactions

This paper is intended to analyze philosophically about the existence of a hybrid contract (english) or al-‘Uqûd al-Murakkabah (Arabic) or multiakad (Indonesia). Search focused on the opinion of scholars of hadith and fiqh (muamalah), as well as its application in Islamic Financial Institutions. This is important, because, in the form of a single contract is not able to respond to contemporary financial transactions which always move and are affected by the financial industry both nationally, regionally and internationally. By using qualitative and literature method, the study concluded that, firstly, fiqh muamalah contemporary view of the hadith related to contract hybrid models lead to the editorial about the ban of bai’ataini fi bai’atin (two sale and purchase in the sale), ban of shafqataini fi shafqatin (two agreements in the deal) and the prohibition of bay’ and the salaf (sale and purchase agreement and ordering of goods), secondly, the construction of contract hybrid models in Islamic banks is addressed to the construction of al- ‘Uqûd al-Mutaqâbilah (dependent or conditional contract), which implemented on Guarantee Bank (BG), and al-‘Uqûd al-Mujtami'ah (same type contract), which implemented on the Housing Financing.

scholarly journals U-8 The Concept, Need and Significance of Sharia rating in Islamic Financial institutions in the perspective of Credit Rating Agencies

2021 ◽  
Vol 5 (1) ◽  
pp. 111-129
Author(s):  
Muhammad Mushtaq Ahmed ◽  
Javed Khan
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Credit Rating ◽  
Financial Institution ◽  
Credit Rating Agencies ◽  
Financial Industry ◽  
Rating Agencies ◽  
The Public ◽  
Islamic Financial Institutions ◽  
Regulatory Bodies

Sharia compliance is considered the basic component of Islamic financial industry as sharia permissibility is one of the basic motive for majority of the customers of Islamic Financial services. Presently the assurance regarding the sharia compliance of Islamic financial institution is given by the Sharia Advisor or Sharia board of respective Islamic financial institution. But there is no process, similar to the credit rating agencies, which provides the public an independent assessment of the commitment of different Islamic financial institution as regard to follow sharia injunctions in true letter and spirit for comparison with other Islamic financial institution. In this paper, the concept of credit rating, its origin, importance and advantages are discussed. In the light of the credit rating agencies practices, the concept of sharia rating and its importance are elaborated. It is observed and recommended that sharia quality rating will be very beneficial for all the stakeholders of the Islamic financial institutions as well the Islamic financial industry hence regulatory bodies of Islamic financial institutions, IFI’s and Credit Rating Agencies shall work together to further refine the concept for implementation of Sharia rating in the industry.

Shariʿah Governance System in Islamic Financial Institutions: New Issues and Challenges

2013 ◽  
Vol 27 (2) ◽  
pp. 171-187 ◽  
Author(s):  
Rihab Grassa
Keyword(s):  
Financial Institutions ◽  
Rapid Growth ◽  
Financial Institution ◽  
Financial Industry ◽  
Governance System ◽  
Conventional Model ◽  
Financial Architecture ◽  
Islamic Financial Institutions ◽  
Internal Mechanism ◽  
Religious Aspect

Abstract Shariʿah governance is considered an unique characteristic of governance in financial architecture as it is concerned with the religious aspect of the overall behaviour of Islamic financial institutions compared to the conventional model of governance. Shariʿah governance is defined as the internal mechanism which helps to ensure that an Islamic financial institution complies with the Shariʿah in its operations and activities and which helps it to achieve the objectives of maqāṣid al-shariʿah. Today, with the significant and rapid growth of the Islamic financial industry worldwide, a strong Shariʿah governance framework seems to be needed now more than before. Effective Shariʿah governance is crucial to strengthen the credibility of the Islamic financial industry. Failure to provide efficient Shariʿah governance may have serious consequences on the development of the Islamic financial system. This article aims to review the Shariʿah governance system and its practice in Islamic financial institutions internationally and discusses the current issues and challenges facing Shariʿah governance.

Trading in Islam: Shari‟ah Rules and Contemporary Applications in Islamic Financial Transactions

2014 ◽  
Vol 2 (2) ◽  
pp. 41
Author(s):  
Syed Faiq Najeeb
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Financial Industry ◽  
Secondary Sources ◽  
Critical Issues ◽  
Islamic Financial Institutions ◽  
Comprehensive Framework ◽  
Financial Transactions ◽  
Industry Needs ◽  
General Conditions

This paper attempts to comprehensively highlight the various Islamic laws and guidelines which govern contracts of exchange involving selling of goods and trading of debts. Muslim jurists have extensively researched, reasoned and deliberated over centuries in order to compile a comprehensive framework of principles Muslims are required to adhere to when engaging in selling of goods and trading of debts. This compilation is based on the rulings derived from the Quran and Sunnah and other secondary sources of Islamic law. The paper introduces the readers to various categories of exchange contracts and examines the elements which may render them valid or void along with details on the general conditions and prohibitions in Islam when it comes to trading. More importantly, the paper discusses the contemporary applications of these contracts in the modern Islamic financial industry and apprises the readers of the current Shari‟ah issues and challenges being faced by the Islamic financial institutions. The paper also highlights critical issues which the Islamic financial industry needs to overcome to sustain its tremendous growth along with a few recommendations for the industry to improve its practices in future.

scholarly journals Religious Communal of Indigenous Peoples in Improving Economy Through Local Wisdom (A Juridical Study on Rural Credit Institution in Bali)

2016 ◽  
Vol 1 (1) ◽  
pp. 89
Author(s):  
Johannes Ibrahim ◽  
Hassanain Haykal
Keyword(s):  
Indigenous Peoples ◽  
Financial Institutions ◽  
Financial Institution ◽  
Target Area ◽  
Credit Institution ◽  
Rural Credit ◽  
Local Residents ◽  
Financial Transactions ◽  
The Village ◽  
Credit Institutions

Rural Credit Institution is a financial institution that is specifically located in Pakraman (customary villages) in Bali. The presence of Rural Credit Institution in Bali adjoined to other bank financial institutions such as Commercial Banks and Rural Banks are widespread throughout the province of Bali. Rural Credit Institutions as a financial institution acquire legality under Article 58 of Act No. 7 of 1992 in conjunction with Act No. 10 of 1998 which provides status as Rural Banks. Local wisdom that owned by Rural Credit Institutions, has the scope of business activities, the types of activities and financial transactions are limited in Pakraman as the target area. Customers who save funds or require a loan to be registered as local residents aimed at empowering communities. It is a characteristic of religious communal of Bali’s people for business activities in the village. The uniqueness in the Rural Credit Institutions is the local wisdom of Bali’s people that can be maintained and not be crushed by globalization.

scholarly journals Development and Supervision of Robo-Advisors under Digital Financial Inclusion in Complex Systems

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Wensheng Dai
Keyword(s):  
Data Mining ◽  
Complex Systems ◽  
Financial Institutions ◽  
Financial Institution ◽  
Rapid Development ◽  
Risk Level ◽  
Financial Industry ◽  
Mining System ◽  
Technical Requirements ◽  
Data Mining System

With the rapid development of the market economy, there are more and more projects in the financial industry, and their complexity and technical requirements are getting higher and higher. The development of computer technology has promoted the birth of robot consultants, and it is of great significance to use robot consultants to manage and supervise financial industry projects. In order to further analyze the development and supervision of robo-advisors under the digital inclusive financial system, this paper uses complex systems and clustering algorithms as technical support to carry out research. First, the traditional K-means algorithm is used to select the initial clustering center, to improve the noise and outlier processing capabilities, and to build a data mining system based on the improved algorithm. Then, a product design model for robo-advisors is built and the risks of robo-advisors are analyzed from three aspects: technology, market, and law. Analyzing the performance of the improved K-means algorithm, in the operation of the experimental dataset B, the accuracy of the clustering result after 6 iterations reached 97.08%, which shows that the algorithm has good performance. During the trial operation of the data mining system, the four types of customers of financial institutions were accurately clustered, and it was concluded that the main type of customers who brought benefits to financial institutions was high-income customers accounting for 10.75%. Robo-advisory product models are used to build five risk-level investment portfolios and conduct risk backtests. Except for the growth and income portfolio, other portfolios have consistently outperformed the performance benchmark during the analyzed time period. Running the research system of this paper in a financial institution, comparing the capital budget before and after the operation, found that the system can improve the accuracy of the budget and reduce the risk of the robo-advisor for the financial institution.

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