scholarly journals URGENSI PENERAPAN KEPATUHAN SYARIAH PADA PERBANKAN SYARIAH (Telaah Konseptual-Analitis)

2017 ◽  
Vol 2 (1) ◽  
pp. 100-120
Author(s):  
Wulpiah Wulpiah
Keyword(s):  
Corporate Culture ◽  
Supervisory Board ◽  
Internal Audit ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Economic Activities ◽  
Islamic Financial Institutions ◽  
Rules And Principles ◽  
Operational Activities ◽  
The Impact

The issue of shariah compliance is increasingly important, given that Islamic finance is always challenged by demand from market participants to be innovative and business oriented (eg. offering new instruments and products), as conventional financial does. This fact can encourage the Islamic financial position further improve. On the one hand they should accommodate the demand of customers that may be contrary to shariah principles, but on the other hand Islamic banks are strictly bound by shariah compliance. This paper will focus on the importance of applying aspects of shariah compliance in Islamic banking.In various opinions, the meaning of shariah compliance in Islamic banks is “the application of Islamic principles, shariah and traditions in financial transactions and banking and other related business”. Shariah is one of the indicators of Islamic disclosure to ensure the adherence of Islamic banks to shariah principles. Furthermore, at the operational level, shariah compliance is compliance to the Dewan Syariah Nasional which is the embodiment of shariah principles and rules that must be adhered in Islamic banking.Some provisions that can be used to assess shariah compliance within Islamic financial institutions are: First, contract used for the collection and distribution of funds in accordance with the priciples of shariah and the rules of shariah. Second, Zakat funds is calculated and paid, managed in accordance with the rules and principles of shariah. Third, All transactions and economic activities are reported fairy in accordance with applicable shariah accounting standards. Fourth, the work environment and corporate culture in accordance with shariah. Fift, business that are financed do not conflict with shariah. Sixthly, there is Shariah Supervisory Board (DPS) as a shariah director for the overall operational activities of Islamic banks. Seventh, the source of funds comes from a legitimate and lawful source according to shariah.Related to the implementation mechanisme of shariah compliance, there are two underlying concept both in the context of the fulfillment of accuntability horizontally and transcendental. First, The concept of shariah review must be done by DPS to conduct supervision on shariah compliance. Second, the concept of shariah internal review, Islamic banking as one of internal audit function. If the optimazation of the implementation of shariah compliance aspect in Islamic banking is a necessity, so that the impact of Islamic bank can be the only option for the society to save and do the financing.

scholarly journals Financial Engineering and Its Role in the Growth and Development of Islamic Banking in Palestine

2018 ◽  
Vol 10 (2) ◽  
pp. 64
Author(s):  
Amer S. Jaber
Keyword(s):  
Financial Engineering ◽  
Growth And Development ◽  
Supervisory Board ◽  
Modern Technology ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Supervisory Boards ◽  
Study Population ◽  
The Impact

The study aimed to identify the role of financial engineering in the growth and development of Islamic banking in Palestine; this is through the acknowledgment of the role of the Sharia Supervisory Board represented by the jurisprudential opinions on new Islamic products and tools. Moreover, the role of the regulations and instructions issued by the Palestine Monetary Authority (PMA) concerning Islamic banks. In addition to the impact of experience and employees’ training, as well as the impact of modern technology on the growth and development of Islamic banking in Palestine.The researcher used the analytical descriptive approach to reach conclusions and recommendations that can be generalized. The study population was employees working at Islamic banks in Palestine, who are (1049) employees. The sample for the study targeted 315 employees, which consists 30% of the total population. The tool used for the study was questionnaires distributed on the sample to collect preliminary data. The number of respondents was (258) employees which composes 81% of the sample.The study has reached many conclusions, and the following are the most important ones: The views of the Sharia Supervisory Board in the banks operating in Palestine play a major role in the growth and development of Islamic banking, while the other areas play a moderate role in the growth and development of Islamic banking in Palestine. The study recommended the need to spread the culture of electronic Islamic banking, and the need to update the regulations and instructions governing Islamic banking. In addition to the need for cooperation and coordination between the Sharia Supervisory Boards of the banks and the unified authority that is affiliated with the PMA.

scholarly journals SHARIA COMPLIANCE RISK IN ISLAMIC BANK: DOES INDONESIA NEED TO ADOPT NEW SHARIA RISK RATING APPROACH ?

2021 ◽  
Vol 8 (2) ◽  
pp. 133
Author(s):  
Romi Adetio Setiawan
Keyword(s):  
Quality Of Service ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Supervision ◽  
Risk Rating ◽  
Islamic Bank ◽  
Rules And Principles ◽  
External Risk

 The purpose of this study is to find the most relevant practice of supervision to manage Sharia Compliance Risk in Indonesian Islamic Bank based on the existing literature. The standard doctrinal approach is used to analyse, examine and evaluate the practice of Islamic banking supervision in Indonesia and Islamic banking in Malaysia for comparative purposes. The results revealed that the prior study on Sharia risk rating is applicable to manage Sharia Compliance Risk in Islamic Banks and their factors meet the Basel, AAOOIFI, and IFSB standards. However, there is no assessment made on evaluating the quality of supervision by Sharia Supervisory Board (SSB) members. Thus the study suggested the inclusion of additional factors on the performance of SSB. For Islamic Banking in Indonesia, this sharia risk rating approach can be combined with applicable internal and external risk rating techniques, to provide the promising quality of service and ensure that the offering of various products and services complies with Sharia rules and principles

scholarly journals Do the Characteristics of Internal Audits and Compliance Functions Affect Sharia Compliance?

2020 ◽  
Vol 35 (2) ◽  
pp. 97
Author(s):  
Laili Latifah Puspitasari ◽  
Wuri Handayani
Keyword(s):  
Research Method ◽  
Supervisory Board ◽  
Internal Audit ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Compliance Function ◽  
Analysis Technique ◽  
The Relationship ◽  
Positive Effect

Introduction: This study aims to explore the relationship between the characteristics of an internal audit (IA) and a compliance function (CF) toward sharia compliance. Background Problems: The Sharia Supervisory Board (SSB), which is supposed to guarantee sharia compliance in Islamic banking, does not function properly. Consequently, the SSB delegates this supervision to the banks’ employees, so the compliance function and internal audit become common practices used to address any issues. Novelty: The majority of previous studies have examined the role/characteristics of the SSB in sharia compliance. On the other hand, few studies have examined the role/characteristics of IA and CF in sharia compliance. Therefore, this study was conducted to examine the characteristics of IA and CF toward sharia compliance. Research Method: The study utilized the seven Islamic banks in Indonesia which published their annual reports for the period from 2011 to 2018 as its research sample. The analysis technique used in this study is a multiple regression analysis. Results: The results indicated that IA and CF competencies had a positive effect toward the sharia compliance of Islamic banks in Indonesia. Conclusion: It is necessary to enhance the competencies of IA and CF staff through improving their professional qualifications, such as through education programs, certification and relevant training on the scope of sharia supervision. Such actions need to be done to support IA and CF staff in performing the comprehensive supervision of sharia compliance.

scholarly journals Central bank impact on practicing Mudarabah financing in Islamic banks: the case of Tanzania

2019 ◽  
Vol 14 (1) ◽  
pp. 81-93
Author(s):  
Habiba H. Omar ◽  
Mohd E. Yusoff
Keyword(s):  
Central Bank ◽  
Supervisory Board ◽  
Regulatory Regime ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Public ◽  
Financial Regulations ◽  
Technical Structure ◽  
Bank Managers ◽  
The Impact

This paper investigates the challenges faced by Islamic banks in practicing Mudarabah financing under conventional regulatory regime by interviewing eleven Islamic bank managers from three selected banks. Thematic data analysis was employed to understand hindrances for Islamic banks in operating Mudarabah financing under conventional regulatory regime. Findings of the study have provided a number of major challenges that hinder Islamic banks performance in Tanzanian context. The challenges include irregularities of policies and regulations, non-supportive operational and technical structure, and missed perceptions of Mudarabah among the public. However, a new challenge of the impact of the central bank on Islamic banks was identified. It is expected that Tanzanian Islamic banking performance will enhance if the central bank introduces sharia regulations for Islamic banking, initiates the central sharia supervisory board, and harmonize country regulations with financial regulations regarding Islamic perspectives.

The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

scholarly journals Pola dan Perkembangan Perbankan Syariah di Indonesia

2019 ◽  
Vol 3 (1) ◽  
pp. 34-41
Author(s):  
Ahmad Khoirin Andi
Keyword(s):  
Financial Institutions ◽  
Banking System ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks

The development of Islamic banking in Indonesia with the complexity of the problem in its journey has shown good results and as a reference for the pattern and strategy for developing financial institutions. Islamic banking with its (the) sharia principles of avoiding usury practices and prioritizing mutual benefits have proven to be a complete banking system. But besides that, additional supervision is needed to ensure the implementation of sharia principles, namely by the existence of a sharia supervisory board (DPS) to implement fatwas as guidelines for the operation of Islamic banks issued by the National Sharia Council (DSN).

scholarly journals AAOIFI governance standards: Sharia disclosure and financial performance for Islamic banks

2019 ◽  
Vol 8 (1) ◽  
pp. 19-37 ◽  
Author(s):  
Hesham Albarrak ◽  
Sherif El-Halaby
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Islamic Law ◽  
Supervisory Board ◽  
Positive Influence ◽  
Economic Consequences ◽  
Annual Reports ◽  
Primary Study ◽  
Islamic Banks ◽  
The Impact

The uniqueness of Islamic banks (IBs) is shown through compliance with Islamic law (Sharia) which is approved through Sharia Supervisory Board (SSB) and presented for stakeholders by Sharia Supervisory Board Report (SSBR). This study seeks to achieve three main objectives as follows: (1) it identifies the degree of IBs’ transparency in compliance with Sharia and their commitment with the governance standards that issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI); (2) it aims to measure the impact of adoption AAOIFI on the degree of Sharia disclosure; and (3) it seeks to test the economic consequences of Sharia disclosure based on its impact on financial performance. We analyse content of annual reports and websites of 120 IBs across 20 different countries for year 2016. Regression analysis shows compliance level for Sharia disclosure based on our index for SSBR is 53% with higher level compliance for IBs that apply AAOIFI standards comparing with banks that adopting International Financial Reporting Standards (IFRS). Therefore, adopting AAOIFI has a positive effect on enhancing the degree of Sharia disclosure. Moreover, Sharia compliance has a positive influence on financial performance based on both Returns on Assets (ROA) and Tobin’s Q as a robustness test. This study adds value to Islamic accounting literature by being a primary study. There is a lack of research on the topic and this paper measures the consequences of Sharia disclosure over the financial performance of IBs as well as the role of Islamic standards (AAOIFI) in enhancing the image of Islamic banks through supporting their compliance with Sharia.

scholarly journals Role of Zakat as Social Finance Catalyst to Islamic Banking and Economic Growth

2017 ◽  
Vol 2 (2) ◽  
pp. 55-70 ◽  
Author(s):  
Ai Nur Bayinah
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Islamic Banking ◽  
Annual Data ◽  
Impulse Response Functions ◽  
Islamic Banks ◽  
West Java ◽  
Vector Autoregressive ◽  
The Impact ◽  
Integration Analysis

This paper is aimed to assess the contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data. Keywords: Zakat, Islamic Banking Financing, Economic Growth, West Java

scholarly journals ISLAMIC CORPORATE IDENTITY IN THE PRACTICE OF ANNUAL REPORT DISCLOSURE ISLAMIC BANK

2012 ◽  
Vol 1 (1) ◽  
pp. 34
Author(s):  
Ratih Paramitasari
Keyword(s):  
National Economy ◽  
Annual Report ◽  
Banking System ◽  
Corporate Identity ◽  
Annual Reports ◽  
Islamic Banking ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
The Ideal

<span>The development of Islamic banking is directed to provide great benefit to society and contribute optimally to the national economy. Islamic banking system and conventional banking system together synergistically supports the mobilization of public funds broadly improve the ability of finance to sectors of national economy. Together with the development of Islamic banking industry in Indonesia, there are many controversies from the community, where most problems highlighted are sticking the label of syariah in Islamic financial institutions are still considered not feasible. Based to these problems, researchers want to conduct this research on the suitability of the annual report disclosure practices of Islamic banks in Indonesia to the reporting standards that reflect the ideal of Islamic Corporate Identity.This study using a checklist for the data analysis consisting of the five themes and the eight dimensions that are should be disclosed in annual reports of Islamic banks. From the results of the assessment aspect of the checklist is then poured in the index EII (ethical identity index). From the calculation of EII, it can be seen that the annual report disclosure practices syariah banks for 2007, 2008, and 2009, has approached the ideal reporting standards that reflect the Islamic Corporate Identity.</span>

scholarly journals A versenyképesség és a társaságok belső ellenőrzése (Competitiveness and corporate internal audit)

2012 ◽  
pp. 19-33
Author(s):  
Mária Bordáné Rabóczki
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Supervisory Board ◽  
Internal Audit ◽  
Senior Management ◽  
Internal Auditors ◽  
Mutual Dependency ◽  
Internal Audit Function ◽  
External Auditor ◽  
The Impact

A cikk a belső ellenőrzésnek a hatékony társaságirányításhoz való hozzájárulását és ennek a versenyképességre gyakorolt hatását vizsgálja. A belső ellenőrzés és a társaságirányítás kölcsönös összefüggésben áll egymással. Nemcsak a belső ellenőrzés hat a társaságirányításra, hanem a releváns társaságirányítási struktúrák, emberi kapcsolatok és magatartásformák jelentős hatást gyakorolnak a belső ellenőrzés színvonalára és hatékonyságára. A cikk ezért különös figyelmet szentel a belső ellenőröknek az igazgatósággal, az auditbizottsággal/felügyelőbizottsággal, a menedzsmenttel és a könyvvizsgálóval való kapcsolatainak vizsgálatára. Rávilágít a belső ellenőrzés legfőbb funkciójára, amely objektív bizonyosságot nyújt az igazgatóság és a felső vezetők számára a kockázatok azonosítására, kezelésére és elfogadható szintre történő csökkentésére szolgáló kontrollfolyamatok megfelelőségéről és hatékonyságáról. A bemutatott belső ellenőrzési modell azt a szemléletet közvetíti, hogy a belső ellenőrzés által nyújtott objektív bizonyosság megszerzése nemcsak a jogszabályoknak vagy az ajánlásoknak való megfelelés, hanem a társaságok versenyképessége szempontjából is kiemelkedő jelentőségű. _________ The purpose of this paper is to consider the contribution of internal audit to the sound corporate governance and the impact of that on the competitiveness of the companies. There is a mutual dependency between internal audit and corporate governance. Not only the internal audit has impact on the corporate governance but the relevant governance structures, relationships and behaviour influence the level and effectiveness of the internal audit. Therefore the present paper is highly concerned with the internal auditors` relationships with the board, audit committee/supervisory board, senior management and the external auditor. It highlights the internal audit function, that provides objective assurance to the board and senior management about the adequacy and effectiveness of the processes by which risks are identified, managed, controlled and mitigated to acceptable levels. The internal audit model demonstrated represents an approach, according to that getting objective assurance provided by internal audit is important not only to be in line with laws and recommendations but to facilitate the corporate competitiveness.

Sign in / Sign up

Export Citation Format

Share Document