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).

Layers of misconceptions about Islamic banking

2019 ◽  
Vol 10 (3) ◽  
pp. 874-892 ◽  
Author(s):  
Malik Shahzad Shabbir ◽  
Awais Rehman
Keyword(s):  
Data Analysis ◽  
Financial Institutions ◽  
Design Methodology ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Significant Difference ◽  
Challenges And Opportunities ◽  
Islamic Financial Institutions

Purpose This paper aims to identify some important misconceptions about Islamic banks, which impact investor’s portfolio in term of threats, challenges and opportunities. This paper is trying to attempt to present five different layers of misconceptions regarding investor portfolio. Design/methodology/approach This paper distributed 132 questionnaires among investors of Islamic financial institutions and multiple regression of least significant difference (LSD) method implied for data analysis. Findings The results of this paper show that two variables, such as opportunity and challenge, out of three are positively significant and the remaining one variable, threat, is insignificant regarding investor portfolio. Originality/value This paper is the first ever attempt in its nature to identify the different misconceptions about Islamic banking system and its impact on investor portfolio.

scholarly journals Studi Efisiensi Perbankan Syariah di Kota Lhokseumawe dan Aceh Utara

2012 ◽  
Vol 12 (1) ◽  
pp. 63
Author(s):  
Iskandar Iskandar
Keyword(s):  
Financial Institutions ◽  
Annual Report ◽  
Low Cost ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Main Difficulty ◽  
Islamic Financial Institutions ◽  
Banking Institutions ◽  
National Banking System

<p><em>The development of Islamic banking in Aceh should have </em><em>get more attention because its existence is not only as complement of the</em></p><em>national banking system, but also as an attempt to fill the Islamic Shari ’a with the Islamic financial institutions. The issue becomes important to investigate since the efficiency of banking institutions urgently need to this performance. Thus, in this study, the efficiency of Islamic banking will be viewed from two aspects: Firstly, the ability of the bank in generating output, in this case the low cost of financing. Secondly, efficiency can also be observed by looking at the bank’s performance in minimizing the risk of financing. This study concluded that the main difficulty of Aceh Islamic banks is not the lack of cheap enough money so that the efficiency becomes less when it is compared with the required cost. However, the annual report shows that the assets of Islamic banks have developed positively and good. Likewise, the ratio of Non Performing Ratio (NPF) of Islamic banks is efficient. The study recommends enhancing the cheap fundraising (al-wadi </em><sup>&lt;</sup><em>’ah) to increase the economic growth in the northern coastal area of Aceh.</em>

scholarly journals CAPITAL STRUCTURE AND LIQUIDITY AS MEASURES OF EFFICIENCY: THE CASE OF ISLAMIC BANKS

2020 ◽  
pp. 23-29
Author(s):  
Francisca M. Beer PhD ◽  
Adeeb S. Hattar DBA
Keyword(s):  
Capital Structure ◽  
Financial Institutions ◽  
Financial Crises ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Adequate Amount ◽  
Negative Impacts ◽  
The Impact ◽  
The Capital Structure

The main objective of this paper is to improve our understanding of the capital structure and liquidity position of Islamic banks. For these institutions, an adequate amount of liquid assets and an adequate amount of capital are essential to stay solvent and avoid bankruptcy. Financial institutions’ amounts of capital and liquid assets have also been identified as valuable shields during financial crises. Unlike some of their Western counterparts, most Islamic banks have been able to circumvent the negative impacts of the 2008 crisis. Our paper reviews the recent and relevant publications about the impact of the capital structure and the liquidity on financial institutions efficiency. It focuses on the Islamic banking system which has grown significantly.

Good Corporate Governance Principles in Indonesian Syariah Banking

2020 ◽  
Vol 2 (1) ◽  
pp. 8-13
Author(s):  
Andrew Shandy Utama
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Islamic Law ◽  
Good Governance ◽  
Banking System ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Good Corporate Governance ◽  
Conventional Banks

Islamic banks are banks that carry out their business activities based on the principles of Islamic law in banking activities based on fatwas issued by the National Sharia Council of the Majelis Ulama Indonesia. This research aims to explain the principles of Good Corporate Governance in Islamic banking in Indonesia. The method used in this research is normative legal research. The results of the research explained that to maintain the trust of Indonesian people who are predominantly Muslim, Islamic banking must apply the principle of Good Corporate Governance in its management. The application of the principle of Good Corporate Governance in Islamic banking is strictly regulated in Article 34 Paragraph (1) of Law Number 21 of 2008, which emphasizes that Islamic banks must implement good governance that includes the principles of transparency, accountability, responsibility, professionalism and fairness in carrying out its business activities. Form of application of the principles of Good Corporate Governance in Islamic banking is supervision conducted by the National Sharia Council of the Majelis Ulama Indonesia in general and the Sharia Supervisory Board specifically in each Islamic bank. Based on data from the Financial Services Authority in 2017, currently there are 13 Islamic banks in Indonesia, 13 Islamic business unit of conventional banks, and 102 Islamic rural banks. This is evidence of the existence and development of Islamic banking that is significant in the national banking system.

scholarly journals Incongruity in Contemporary and Shariah Compliant Current Accounts and Ijarah Operated by Islamic Banking

2020 ◽  
Vol 37 (- 2) ◽  
pp. 1-10
Author(s):  
Malik Saqib Ali ◽  
Abdul Wahab Jan Al-Azhari
Keyword(s):  
Financial Institutions ◽  
Financial Management ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
Financial Losses

Current accounts and Ijarah has been foremost and important tools operated by the Islamic Financial Institutions. This study attempts to explore a few misgivings in the handling of current accounts by the Islamic banks in Pakistan. Financial management of Islamic banks is not under consideration which leads to the violation of Shariah’s fundamentals. Also in case of Ijarah, a bank’s client suffers from financial losses which must be borne in Islamic Banking system. Islamic Banks transfer the burden of some charges emerging form ownership of leased asset on their clientele which does not have any justification according to Shariah. This research has been carried out by taking unstructured interviews from some of the concerned staff of Islamic Banks. The results depict that current accounts and Ijarah is in operation and need to be revised and refined and must comply with Shariah.

Purification of Non-Halal Income in Malaysian Islamic Banks: An Overview (Penyucian Pendapatan Tidak-Halal Di Bank-Bank Islam Malaysia: Satu Tinjauan)

2017 ◽  
Vol 14 (2) ◽  
pp. 305-326
Author(s):  
Saidatolakma bt Mohd Yunus ◽  
Sayed Sikandar Al Haneef ◽  
Zuraidah Kamaruddin ◽  
Mek Wok Mahmud
Keyword(s):  
Special Reference ◽  
Banking System ◽  
Financial Impact ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Total Income

Abstract Purification of non-halal income (NHI) is the process of deducting non-halal or tainted income deemed unacceptable by Shairaah from the total income generated in Islamic banks. It is undeniable that Shariaah non-compliance events still occur in Islamic banking system considering the fact that Islamic banks have not been able to fully comply with the requirements of Shariaah in their transactions, operations and financial activities. The realization of Shariaah non-compliance events in Islamic banks in some situations involve a financial impact which leads to NHI. All NHI identified must be purified since Islam does not allow any non-halal income to be held, kept and utilized for their own benefits. This paper will give a new insight on purification of NHI by first delineating the concept of mal haram in Islam as well as the Shariaah non-compliant events realized in the banks, with special reference to cases involving Islamic banks in Malaysia. Keywords: Islamic banking, non-halal income, purification, charity, waqf. Abstrak Penyucian pendapatan tidak halal (NHI) adalah proses memisahkan pendapatan tidak halal menurut Syari'ah daripada jumlah keseluruhan pendapatan yang dihasilkan oleh bank Islam. Tidak dapat dinafikan bahawa masih berlaku ketidakpatuhan Syariah dalam sistem perbankan Islam. Ini adalah kerana bank Islam tidak dapat mematuhi sepenuhnya keperluan Syariah dalam transaksi, operasi dan kegiatan kewangan mereka. Kewujudan perkara yang tidak mematuhi Syariah di bank Islam dapat memberi kesan kepada status kewangan yang boleh membawa kepada berlakunya pendapatan haram. Pendapatan tidak halal yang sudah dikenalpasti mesti disucikan kerana Islam tidak membenarkan apa-apa pendapatan tidak halal disimpan dan digunakan untuk faedah mereka sendiri. Kajian ini memberi pandangan baru tentang penyucian pendapatan tidak halal dengan membincangkan konsep harta haram dalam Islam serta perkara-perkara yang tidak patuh syariah yang berlaku di bank-bank Islam di Malaysia. Kata Kunci: Perbankan Islam, pendapatan tidak-halal, Penyucian, Amal, wakaf.

Islamic Banking Regulations in Light of Basel II

2010 ◽  
Vol 27 (1) ◽  
pp. 74-101 ◽  
Author(s):  
M. Kabir Hassan ◽  
Muhammad Abdul Mannan Chowdhury
Keyword(s):  
Financial Institutions ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Regulatory Agencies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Minimum Capital ◽  
Regulatory Standards

This paper seeks to determine whether the existing regulatory standards and supervisory framework are adequate to ensure the viability, strength, and continued expansion of Islamic financial institutions. The reemergence of Islamic banking and the attention given to it by regulators around the globe as to the implications of a recently issued Basel II banking regulation makes this article timely. The Basel II framework, which is based on minimum capital requirements, a supervisory review process, and the effective use of market discipline, aligns capital adequacy with banking risks and provides an incentive for financial institutions to enhance risk management and their system of internal controls. Like conventional banks, Islamic banks operate under different regulatory regimes. The still diverse views held by the regulatory agencies of different countries on Islamic banking and finance operations make it harder to assess the overall performance of international Islamic banks. In light of the increased financial innovation and diversity of instruments offered in Islamic finance, the need to improve the transparency of bank operations is particularly relevant for Islamic banks. While product diversity is important in maintaining their competitiveness, it also requires increased transparency and disclosure to improve the understanding of markets and regulatory agencies. The governance of Islamic banks is made even more complex by the need for these banks to meet a set of ethical and financial standards defined by the Shari`ah and the nature of the financial contracts banks use to mobilize deposits. Effective transparency in this area will greatly enhance their credibility and reinforce their depositors and investors’ level of confidence.

Islamic Banking Regulations in Light of Basel II

2010 ◽  
Vol 27 (1) ◽  
pp. 74-101
Author(s):  
M. Kabir Hassan ◽  
Muhammad Abdul Mannan Chowdhury
Keyword(s):  
Financial Institutions ◽  
Banking Regulation ◽  
Capital Requirements ◽  
Basel Ii ◽  
Capital Adequacy ◽  
Regulatory Agencies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Minimum Capital ◽  
Regulatory Standards

This paper seeks to determine whether the existing regulatory standards and supervisory framework are adequate to ensure the viability, strength, and continued expansion of Islamic financial institutions. The reemergence of Islamic banking and the attention given to it by regulators around the globe as to the implications of a recently issued Basel II banking regulation makes this article timely. The Basel II framework, which is based on minimum capital requirements, a supervisory review process, and the effective use of market discipline, aligns capital adequacy with banking risks and provides an incentive for financial institutions to enhance risk management and their system of internal controls. Like conventional banks, Islamic banks operate under different regulatory regimes. The still diverse views held by the regulatory agencies of different countries on Islamic banking and finance operations make it harder to assess the overall performance of international Islamic banks. In light of the increased financial innovation and diversity of instruments offered in Islamic finance, the need to improve the transparency of bank operations is particularly relevant for Islamic banks. While product diversity is important in maintaining their competitiveness, it also requires increased transparency and disclosure to improve the understanding of markets and regulatory agencies. The governance of Islamic banks is made even more complex by the need for these banks to meet a set of ethical and financial standards defined by the Shari`ah and the nature of the financial contracts banks use to mobilize deposits. Effective transparency in this area will greatly enhance their credibility and reinforce their depositors and investors’ level of confidence.

scholarly journals ISLAMIC BANKING AND INVESTMENT FINANCING: A CASE OF ISLAMIC BANKING IN KENYA

2017 ◽  
Vol 2 (1) ◽  
pp. 66
Author(s):  
Abbas Said Abubakar ◽  
Dr. Josiah Aduda
Keyword(s):  
Real Estate ◽  
Motor Vehicle ◽  
Survey Design ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Investment Financing ◽  
Trade Financing ◽  
Real Estate Financing ◽  
Sme Financing

Purpose: The purpose of this study was to establish the effect of Islamic banking on investment financing in Islamic banks in Kenya.Methodology: This study employed descriptive survey design. The population of this research consisted of 8 commercial banks offering Shariah compliant products. The study used secondary data for the period 2009 to 2012. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results were presented in frequency tables and figures. The data was then analyzed in terms of descriptive statistics like frequencies, means and percentages.Results: The study findings indicated that there were various Islamic banking products that Islamic banks used to finance their investments. This included motor vehicle financing, mortgage financing, asset financing, real estate financing, trade financing and SME financing. The study also indicated that there were various modes of financing used by Islamic banking such as profit and loss sharing, Ijara and murahaba. Regression results revealed that motor vehicle financing was statistically significant in explaining loans advanced to customers in Islamic banks.  However mortgage financing, asset financing, real estate financing, trade financing and SME financing were not statistically significant in explaining loans advanced to customers in Islamic banks but they were positively correlated.Unique contribution to theory, practice and policy: The study recommends that the management of the banks to get well equipped and competent employees on Islamic banking products as most Islamic banks are currently managed by people who have been educated and trained in the conventional banking system. Thus, more time may be required for the unique characteristics of Islamic financial instruments to be completely accepted and understood by both bank personnel and customers. It is also recommended that the terms and conditions of acquiring a loan be made more appealing and considerate for more investors to approach the banks for assistance as the Shari`ah restricts the type of businesses for which Islamic banks can provide financing.

scholarly journals Perkembangan Bank Syariah PAsca UU 21 Tahun 2008

2012 ◽  
Vol 12 (1) ◽  
pp. 43
Author(s):  
Luhur Prasetiyo
Keyword(s):  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Core System ◽  
Over Time

<em>Islamic banking system still grows continuously over time in various countries, including Indonesia. Although it was a bit late, if it was compared to another, Islamic banking system began to develop in Indonesia in the early 1990’s. At that time, Islamic banking, however, was still running with its all characteristics based on the rule without adequate law. Islamic banking began to be recognized legally as the legalization of UU Perbankan 1992, and it was followed by its deregulation in 1998, and Islamic banking in Indonesia finally got its full legality after legalization of UU Perbankan Syariah in 2008. UU Perbankan Syariah as a new law certainly has significance for the development of Islamic banking in Indonesia. Based on the BI statistics, Islamic banks, especially Bank Umum Syariah after legalization of UU Perbankan Syariah, has been growing significantly, among in the number of banks, total assets, and total financing. Unfortunately, the growth of PLS (profit and loss sharing) doesn’t occupy a significant position in total financing of Islamic banks, whereas PLS is core system in Islamic banking.</em>

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