scholarly journals Financing Schemes and Lost Profit Sharing in Islamic Banking : Challenges and Opportunities

2020 ◽  
Vol 3 (1) ◽  
pp. 1-13
Author(s):  
Syarifuddin Syarifuddin
Keyword(s):  
Banking System ◽  
Profit Sharing ◽  
External Factors ◽  
Government Support ◽  
Monitoring Systems ◽  
Islamic Banking ◽  
Main Mode ◽  
Internal Factors ◽  
Challenges And Opportunities ◽  
Lost Profit

A profit and lost sharing system is an agreement between a financier (shahibul mal) and a capital manager (mudharib) to run a particular economic business with a profit sharing and risk loss scheme. At this time a lot of literature encourages PLS schemes as the main mode of Islamic banking system, but in practice it is avoided. The research aims to theoretically evaluate the causes of PLS ​​contracts in Islamic banking fail to be fully accepted and be excellent for investors in Islamic Banking. The results showed that the use of PLS ​​(mudharabah and musharakah) schemes in Islamic (sharia) Banking in Indonesia, Malaysia, Pakistan, Turkey and Morocco did show a low percentage of total financing. There are internal factors and external factors that hinder the development of PLS ​​schemes. Internal factors include moral hazard concern from partners, low trust in partners, weak monitoring systems, weak capabilities and collateral from partner companies. While external factors include; public literacy on Islamic banking products, government support, and supervision from regulators. Some of these factors arise because of a misunderstanding of the PLS system. Therefore, it is necessary to reprogram the perception of Shahibul mal and mudarib in the PLS scheme. This research is expected to contribute to the development and improvement of PLS ​​schemes in Islamic Banking.

Satisfaction of Pakistan’s Islamic banking system during the COVID-19 pandemic Logistic model-based identification of the determinants to improve customer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Majed Alharthi ◽  
Imran Hanif ◽  
Hafeez Ur Rehman ◽  
Hawazen Alamoudi
Keyword(s):  
Banking System ◽  
External Factors ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Internal Factors ◽  
Content Type ◽  
Islamic Bank ◽  
Strict Compliance ◽  
Internal And External Factors

Purpose This study aims to explore the potential determinants of customers’ satisfaction with the Islamic banking system and highlights the fact that both internal and external factors play key roles in customer satisfaction (CS) during the COVID-19 pandemic. Design/methodology/approach Primary data from six Islamic banks (Al Baraka Bank Ltd, BankIslami Pakistan Ltd, Burj Bank Ltd, Dubai Islamic Bank Ltd, Meezan Bank Ltd and MCB-Islamic Bank Ltd) were analysed using a binary logit method. Findings The results showed that internal factors such as hand sanitisation facilities, strict compliance with wearing a mask before entering the bank, the distance between customers and dealing officers, an organised network of branches (in terms of health safety protocols), the behaviour of dealing officers and extended banking hours contributed significantly to enhancing the satisfaction of Islamic banking customers during the pandemic in Pakistan. The results showed that high service charges on loans have a significant adverse impact on CS. Concerning external factors, the results showed that mass media platforms that can update customers about new services and customer transactions’ processing timing, the number of operational branches in the pandemic period, available parking space in front of a bank and recommendations from family and friends to open an account with a particular bank increase CS levels. Practical implications The study’s results will be helpful for the policymakers and practitioners to design such policies that can promote the Islamic banking system in developing countries such as Pakistan. Originality/value Under the pandemic situation, the present study highlights the internal and external determinants of Islamic banking customers’ satisfaction in Pakistan. The study provides a foundation for Islamic Banks to revise their policy frameworks and marketing strategies to attract customer interest and improve their satisfaction levels.

scholarly journals Faktor – Faktor Yang Mempengaruhi Pertumbuhan Aset Bank Syariah Di Indonesia Tahun 2006-2015

2017 ◽  
Vol 3 (3) ◽  
pp. 249
Author(s):  
Diamantin Rohadatul Aisy ◽  
Imron Mawardi
Keyword(s):  
Latent Variables ◽  
Analytical Techniques ◽  
Profit Sharing ◽  
Partial Least Square ◽  
External Factors ◽  
Least Square ◽  
Third Party ◽  
Endogenous Variable ◽  
Islamic Banking ◽  
Internal Factors

This research aimed to determine the external and internal factors affect to the assets growth of Islamic banking in Indonesia, in time year 2006 until year 2015. The approach is a quantitative approach using PLS (Partial Least Square) analytical techniques with three latent variables, that is external factors as an exogenous variable wich which used to reflect external factors in this research are inflation, GDP Growth, BI rate, and money supply (M2); internal factors as an endogenous variable which are reflected by profit sharing rate, promotion, education and training cost, NPF ratio, ROA ratio, FDR ratio, Third-Party Funds, quantity of office bank, and office channeling; and assets growth of Islamic banking as an endogenous variable. The result of this research showed that external factors has a significant effect to internal factors. However, both external factors and internal factors have no significant effect to the growth of Islamic banking asset.

Determinants of Islamic Bank Profitability: Evidence from Indonesia

2020 ◽  
Vol 5 (1) ◽  
pp. 1-13
Author(s):  
Puji Sucia Sukmaningrum ◽  
Kashan Pirzada ◽  
Sylva Alif Rusmita ◽  
Fatin Fadhilah Hasib ◽  
Tika Widiastuti ◽  
...  
Keyword(s):  
Interest Rate ◽  
Quality Management ◽  
Banking Industry ◽  
External Factors ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Internal Factors ◽  
Bank Profitability ◽  
Islamic Bank

Objective – Islamic Banks have a distinct advantage that is not only conduct a commercial operation, but to also conduct social operations. Therefore, Islamic Banks plays an important role in developing the Indonesian economy. The aim of this study is to investigate the impact of internal and external factors that affect the profitability of Islamic Banks in Indonesia. Methodology/Technique – The methodology of this research is multiple regression. The object of this research is the Islamic banking industry in Indonesia. Internal factors include size, liquidity, asset quality, management, and efficiency ratio. External factors include interest rate and inflation. Return on Assets is used to measure profitability. The monthly data is collected from the financial reports of Islamic Banks between 2011 to 2016. Findings – The findings show that size, liquidity, assets quality, management ratio, interest rate and inflation lead to a greater Return on Assets (profitability) in Islamic Banks in Indonesia. Efficiency however does not have a significant effect on profitability of Islamic Banks in Indonesia. Novelty – Based on the results of this research, it can be concluded that the Islamic banking industry can use those variables to improve the profitability of Islamic banks in the future. In addition, there are two variables that affect the profitability of Islamic banking industry. For the Islamic banking industry should anticipate the movement of inflation and interest to improve the profitability of Islamic banks. Type of Paper: Empirical paper. Keywords: Islamic Banks; Profitability; Internal Factors; External Factors; Indonesia. Reference to this paper should be made as follows: Sukmaningrum, P.S; Pirzada, K; Rusmita, S.A; Hasib, F.F; Widiastuti, T; Hendratmi, A. 2020. Determinants of Islamic Bank Profitability: Evidence from Indonesia, J. Fin. Bank. Review, 5 (1): pp. 01 – 13 https://doi.org/10.35609/jfbr.2020.5.1(1) JEL Classification: G21, G24.

scholarly journals STRATEGI PENGEMBANGAN USAHA INDUSTRI KERAJINAN BAMBU BATIK UD. BETRIS DI KELURAHAN MERAS KECAMATAN BUNAKEN KOTA MANADO

2018 ◽  
Vol 14 (3) ◽  
pp. 79
Author(s):  
Julia ., Lendombela ◽  
Melsje Y. Memah ◽  
Agnes E. Loho
Keyword(s):  
Swot Analysis ◽  
Raw Materials ◽  
Secondary Data ◽  
Production Equipment ◽  
External Factors ◽  
Government Support ◽  
Primary Data ◽  
Internal Factors ◽  
Market Opportunities ◽  
The Government

This study aims to identify internal factors and external factors of UD Betris, as well as to determine the strategy for developing the business of bamboo batik handicraft industry UD Betris. Betris in Meras Village. This research was conducted from April to June 2018. The data used were primary data and secondary data. Primary data is obtained through observation and interviews which are divided into two parties, namely internal parties (business owners and labor) and external parties (local government and consumers) with 8 (eight) respondents. Meanwhile, secondary data was obtained from literature studies. Analysis of the data used is by using a SWOT analysis. The results showed that internal factors include: raw materials, quality of raw materials, price of raw materials, product uniqueness, business spirit and craftsman skills, product prices, product durability and quality, not having financial records, traditional production equipment, product arrangement that has not been arranged neat, promotion is not efficient, does not have a special place of business, and there is no parking space. external factors include: high market opportunities, government support, opportunities for training, opportunities to participate in exhibitions, plastic substitute goods, interest in business successors, and the existence of competitors using modern production tools. Based on the SWOT diagram, the chosen strategy is a combination of SO, namely: 1) Maintaining product quality and continuing to develop products by innovating to create bamboo handicraft products with new designs. 2) Continue to work with the government and related agencies to develop and expand marketing areas so that products are better known to local and foreign communities through training and exhibition events. *jnkd*.

scholarly journals THE ISLAMIC BANKING AND THE ECONOMIC INTEGRATION IN ASEAN

2016 ◽  
Vol 19 (1) ◽  
pp. 81-106
Author(s):  
Solihin Solihin ◽  
Noer Azam Achsani ◽  
Imam T Saptono
Keyword(s):  
Market Power ◽  
Banking System ◽  
Islamic Banking ◽  
Tobit Regression ◽  
Total Size ◽  
Bank Efficiency ◽  
Internal Factors ◽  
Banking Efficiency ◽  
Important Indicator ◽  
The Cost

The efficiency level of the banking industry is the most important indicator to identify the soundness of banking system. This paper use non parametric frontier approach, DEA, to analyze the Islamic bank efficiency in ASEAN. We use price of deposit from customers, deposits and placements of banks, labor, and others operational expenditures as control variabel, and using financing, deposits and placements on other insitution, securities, others investment as output variabel. We found that the mix bank is the most efficient group within the observation period. Furthermore, the average Islamic banking efficiency in Indonesia, on intermediation approach, is lower than the average of ASEAN, unless they can reduce the cost of labor and other operational expenses. This paper also examines the determinant of efficiency of the Islamic Banking in ASEAN. Internal factors are Total Aset, ROA, BOPO, and ETA, and external faktor are Market Power and Inflation. Using Tobit regression, the result shows the factors that most influence to the Islamic banking efficiency in Indoneisa is the total size of the bank or its assets, OPEX/OR, and Market Power.

scholarly journals Was the Turkish Financial Crisis in 2001 Caused by External or Internal Factors?

2013 ◽  
Author(s):  
Fatih Konak ◽  
Hakan Turan
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Current Account Deficit ◽  
Banking System ◽  
External Factors ◽  
Negative Effects ◽  
Internal Factors ◽  
Crude Oil Prices ◽  
Turkish Economy ◽  
Seasonal Factors

There has been much discussion on the issue of whether financial crisis are caused by external factors or internal factors. This research has attempted to demonstrate what were the real reasons whether internal or external factors, behind the Turkish financial crisis in 2001. The crucial question that demands an answer is ‘which one of them overwhelmingly triggered the crisis. It was argued that before the crisis occurred, the Turkey economy had been affected by some unfavourable external shocks such as, rise in crude oil prices which increased the current account deficit; however, it can be seriously solved by employing correct finance technique that using long-term capital and direct investment instead of short-term capital. Therefore, external factors effects on the economy can be eliminated by right monetary policy, which means they were not the key factors. On the other hand, there were many internal factors behind the crisis such as fragile finance and banking system, ruling out dis-inflation negative effects and seasonal factors and so on. It could be advocated that these factors led the Turkish economy into uncertain situation and they had central part in the crisis because, when the last global financial crisis was occurred in 2008, although all unexpected external factors were soared, the Turkish economy was less affected, because the Turkish economy has been become more durable by solving the internal triggering factors.

scholarly journals OPTIMIZATION OF KOTO JAYA DAILY MARKET PRODUCTION IN MUKOMUKO

2020 ◽  
Vol 1 (1) ◽  
pp. 10-21
Author(s):  
Yoki Kurniawan ◽  
Rahmat Al Hidayat
Keyword(s):  
Swot Analysis ◽  
Technological Development ◽  
Community Response ◽  
External Factors ◽  
Government Support ◽  
Primary Data ◽  
Optimization Strategy ◽  
Internal Factors ◽  
Market Production ◽  
Internal And External Factors

This study aims to identify internal and external factors faced by the Koto Jaya Daily Market in Mukomuko, determine the optimization strategy of the market utilization. The data used in this study are primary data obtained from traders at the Koto Jaya Daily Market in Mukomuko in 2018 using a SWOT analysis tool.The results of the SWOT analysis can be concluded that internal factors in optimizing the utilization of the Koto Jaya Daily Market in Mukomuko are; 1) Strength Factors (land availability, location, supporting facilities, trader organizations, merchant composition, infrastructure, price information); 2) Weakness factors (rental prices, utilities, location access, market conditions, budget constraints, trader awareness), for external factors in optimizing the utilization of the Koto Jaya Daily Market in Mukomuko are; 1) Opportunity factors (population, community response, government support, technological development); 2) Threat factors (other market competitors, natural disasters, thuggery, government policies, economic crisis). The strategy that must be applied in this condition is the WT (Weaknesses-Threats) strategy, namely; 1) Implement a kiosk and booth rental price strategy; 2) Improve the quality and service quality of the Koto Jaya Mukomuko Market; 3) Optimizing existing facilities and infrastructure; 4) Maintain market security and comfort

scholarly journals AKAD MUSYARAKAH MUTANAQISAH DALAM SISTEM PERBANKAN SYARIAH

2018 ◽  
Vol 12 (2) ◽  
pp. 321-338
Author(s):  
Muhammad Anwar Zainuddin
Keyword(s):  
Banking System ◽  
Profit Sharing ◽  
Alternative Solution ◽  
Islamic Banking ◽  
Human Being ◽  
Economic Potential ◽  
Operational System ◽  
Basic Rights ◽  
Islamic Institutions

The need for house is one of the primary needs for every human being and basic rights for humans. The financing of musyarakah mutanaqisah in the Islamic banking system is one of the bank's involvement in the provision of housing loans. Financing musyarakah syirkatul milk is the combination of capital from two or more people to finance a project / business, profits will be divided based on the proportion of capital; whereas if there is a loss it will be borne together according to the agreement contained in the contract / contract agreement. Islamic banking has obtained formal juridical legitimacy that strengthens sharia principles as a principle that underlies the operational system of profit-sharing banking activities. This is a concrete manifestation of the objective conditions of the Islamic community's need for Islamic institutions, which is believed to be an alternative solution for efforts to optimize the economic potential of the community.

scholarly journals PERSEPSI MASYARAKAT TERHADAP PERBANKAN SYARIAH DI KABUPATEN SUMENEP

2020 ◽  
Vol 10 (1) ◽  
pp. 77-92
Author(s):  
Bambang Hermanto ◽  
Syahril Syahril
Keyword(s):  
Financial Institution ◽  
Banking System ◽  
Well Being ◽  
Profit Sharing ◽  
Public Perceptions ◽  
Islamic Banking ◽  
Religious Leaders ◽  
Market Demand ◽  
Free System ◽  
Purposive Selection

Research on Community Perceptions of Sharia Banking in Sumenep Regency. Islamic banking implements an interest-free system that aims to create justice, social and economic well-being and protect people's property rights. The purpose of this study is to determine public perceptions of Islamic banking in Sumenep district, with qualitative research methods by describing systematically, factually and accurately about people's perceptions of Islamic banking, by observing, interviewing directly and in depth and documenting it. Whereas the key informants of religious leaders / community leaders who will be interviewed in this study use the method of purposive selection. Sharia Banking in Sumenep Regency is a bank that operates not relying on interest but on the basis of profit sharing in accordance with Islamic Sharia. Sharia Bank is a form of market demand that requires a financial institution with a halal banking system and complies with sharia principles even though it has not been said to be 100% sharia or kaffa.

scholarly journals Pengaruh Financing to Deposit Ratio (FDR) dan Non-Performing Financing (NPF) terhadap Bagi Hasil Deposito Mudharabah pada Bank Syariah Mandiri

2018 ◽  
Vol 8 (1) ◽  
pp. 98
Author(s):  
Achmad Agus Yasin Fadli
Keyword(s):  
Significant Influence ◽  
Linear Regression Analysis ◽  
Banking System ◽  
Multiple Linear Regression Analysis ◽  
Profit Sharing ◽  
Positive Influence ◽  
Coefficient Of Determination ◽  
Islamic Banking ◽  
Negative Effect ◽  
Banking Institutions

<em>Along with the development of sharia banking institutions in Indonesia, the more types of services provided by these Islamic banking institutions. This study focuses on internal factors, such as Financing to Deposit Ratio (FDR) and Non-Performing Financing (NPF), because of the presumption that these factors have the most significant influence on profit-sharing that exist in the Islamic banking system. This study aims to determine the effects of Financing to Deposit Ratio (FDR) and Non-Performing Financing (NPF) variables on Mudharabah Deposits of PT Bank Syariah Mandiri, both partially and simultaneously for the 2011-2017 period. The sample used in this study is PT Bank Syariah Mandiri in Indonesia by using multiple linear regression analysis which is processed using SPSS (Statistical Product Services and Solutions) software version 24. The results of this study state that FDR has a negative effect on profit sharing of Mudharabah Deposits, while NPF has a positive influence on the profit sharing of Mudharabah Deposits. These results also indicate that simultaneously the Financing to Deposit Ratio (FDR) and Non-Performing Financing (NPF) variables have a significant influence on the profit sharing of PT Bank Syariah Mandiri Mudharabah Deposits for the period 2011-2017. This is supported by the results of the coefficient of determination. The coefficient is 0.673 or 67.3% of profit sharing of the Mudharabah Deposits are influenced by the FDR and NPF variables, and the remaining 32.7% is influenced by other variables not used in this research model.</em>

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