scholarly journals A Critical Evaluation of articles Related to Islamic Banking

2019 ◽  
Vol 8 (2S4) ◽  
pp. 302-306
Keyword(s):  
Critical Evaluation ◽  
Islamic Banking ◽  
Ethical Values ◽  
Risk Minimization ◽  
Banking Activity ◽  
Global Force ◽  
Islamic Jurisprudence ◽  
Banking Business ◽  
Conventional Banks ◽  
Set Up

Islamic banking is any banking activity carried out within the parameters of Islamic jurisprudence. It differs from the traditional banking business in its prohibition of dealing with interest i.e. borrowing and lending of money for interest. Another feature that distinguishes Islamic banking is the concept of profit and loss sharing paradigm. These features have made this sunrise industry to not only attract new markets but also to show consistent growth over the years. Hence, large conventional banks have also shown interest in venturing into Islamic banking and have opened Islamic banking windows in their commercial set up in order to capitalize on the opportunity. Although Islamic banking is still in its nascent stage, it has become a global force to reckon with due to its strong ethical values and risk-minimization principles. The primary aim of this article is to critically review the existing literature available in studies related to Islamic banking.

scholarly journals ??? ???? ??????? ??????? ?? ??????? ??????? ??? ??????? ????????? ?? ????????? ??????? ?? ??????: ????? ????? ?????? ?????

2016 ◽  
Vol 1 (2) ◽  
pp. 215
Author(s):  
Hatta Syamsuddin ◽  
Abdul Khaliq Hasan ◽  
Moh Muinudinillah
Keyword(s):  
Supervisory Board ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Finance Industry ◽  
Islamic Jurisprudence ◽  
Banking Business ◽  
Rules And Principles ◽  
Muslim Communities ◽  
Financial Transactions

The emergence of Islamic banking was considered as a response to the desire of Muslim communities to disassociate from usury (riba-based) system. The development of time increasing the diversity of financial transactions, both in trading and banking business, which has no provisions in the old sources of Islamic jurisprudence. This dangerous phenomenon was the reason for the importance of a Sharia Supervisory Board to ensure all of the banking transactions comply with the rules and principles of sharia. This research focused on the role of National Sharia Board and his methodology in the fatwa. This research uses analytical descriptive methodology. The limitations of this research were about: how the National Sharia Board played their roles in Indonesia and how the method applied by the National Sharia Board in issuing a fatwa. The research found that: the National Sharia Board in Indonesia has played their roles, especially in developing Islamic finance industry, ensuring financial and banking transaction comply with the rules and principles of sharia, and providing awareness and guidance to the Muslim communities. The issuing of fatwa on financial transactions was the authority of the National Sharia Board. The National Sharia Board hold on procedures, specific steps, and certain agreed methodology in issuing the fatwa. Nevertheless, there still some fatwas that caused controversy in the Islamic community

scholarly journals Barriers of the Russian legislation to the functioning of Islamic banking in the territory of the Russian Federation

nauka.me ◽  
2021 ◽  
pp. 1
Author(s):  
Maria Yakunina
Keyword(s):  
Russian Federation ◽  
Deposit Insurance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Federal Law ◽  
Banking Activity ◽  
Trading Activities ◽  
The Subject ◽  
The Russian Federation ◽  
Conventional Banks

The subject of the article are the norms of the Russian legislation, in particular, the Federal Law of the Russian Federation «About banks and banking activities», the Federal Law of the Russian Federation «On Deposit Insurance in Banks of the Russian Federation», Civil Code of the Russian Federation, Internal Revenue Code of the Russian Federation in order to identify barriers of the Russian legislation that hinder Islamic banking activity in the territory of the Russian Federation. Analysis of the provisions of legislation allows to reveal the essential differences between the principles of conventional banks and principles of Islamic banks. The article detects the perspective of development of Islamic banking in the Russian Federation. Conducted research represents that the majority of the barriers excepting the prohibition of traditional banks to carry out trading activities, are related to the terminological aspect and to the question of perception and interpretation of sharia’s principles by the Russian legal system.

scholarly journals An Explanatory Analysis to Identify and Prioritize the Challenges of Islamic Banking Implementation: The Case of I.R. Iran

2014 ◽  
Vol 35 ◽  
pp. 45-55
Author(s):  
Seyed Reza Seyed-Javadin ◽  
Reza Raei ◽  
Mohammad Javad Iravani ◽  
Mohammad Safari
Keyword(s):  
Qualitative Method ◽  
Banking System ◽  
Islamic Banking ◽  
Practical Application ◽  
Policy Makers ◽  
The Road ◽  
Banking Activity ◽  
Islamic Jurisprudence ◽  
Using Data ◽  
Conceptual Research

Islamic banking system has emerged as a competitive and a viable substitute for the conventional banking system during the last four decades. Islamic banking is a banking activity that is accordance with the laws of Islam (Islamic jurisprudence) and its practical application is in the development of Islamic economics. For complete implementation of Islamic banking, namely transition from interest free banking system and going forward to reach the total Islamic banking system, there are challenges and problems involved. The main purpose of this research is to identify and explain the important challenges associated with IB implementation in I.R.Iran. To achieve this goal, based on the qualitative method after a detailed study of the theoretical foundation and literature review, using data obtained from interviews with experts and the convenient questionnaire, the final identified factors have been analyzed and presented in form of a conceptual research model. Experts of this research were both academicians and practitioners in the field of banking and financial system. The findings showed that significant challenges exist to establish a comprehensive system of Islamic banking; accordingly policy makers and mangers in order to succeed in this system should consider them. The convenient programs should be settled so that the problems and challenges eliminated and the road to success implementation will be paved.

scholarly journals Calculation of financial intermediation services indirectly measured (FISIM) for Islamic banking activity in Malaysia1

2020 ◽  
Vol 36 (3) ◽  
pp. 677-682
Author(s):  
Khairul Aidah Samah ◽  
Mohd Yazid Kasim ◽  
Mohd Fahmi Mohd Arupin
Keyword(s):  
Financial Intermediation ◽  
Position Statement ◽  
Islamic Banking ◽  
National Accounts ◽  
System Of National Accounts ◽  
Financial Position ◽  
Banking Activity ◽  
The Difference ◽  
Conventional Banks ◽  
Interest Expense

The Financial intermediation services indirectly measured (FISIM) is a concept used in national accounts to value the activity of banks as intermediaries between depositors and borrowers and widely used in conventional banking. Unlike conventional banking, Islamic banking declared their loans as financing in financial position statement. While interest expense and interest received declared as “profit distributed to depositors” and “income derived from investment”. The terms were compliant by the shariah law in Malaysia and this paper show on how the calculation of FISIM for Islamic banking in the context of the 2008 System of National Accounts. The calculation process is similar to conventional banks methodology, but the difference was only terms of financing instead of loans that have been used in Islamic Banking.

scholarly journals The Comparative Analysis of the Islamic and Conventional Bank System in Turkey

2016 ◽  
Author(s):  
Vivien Pavelka ◽  
Gyöngyi Bánkuti ◽  
Jozsef Varga
Keyword(s):  
Comparative Analysis ◽  
Financial Crisis ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Leverage Ratio ◽  
Conventional Banks ◽  
Set Up ◽  
Bank System ◽  
Conventional Bank

The aim of our study is the comparative analysis of the Islamic and conventional bank systems in Turkey focusing on the years of the last financial crisis. The financial crisis of 2008 shocked the world and impeached the confidence in the conventional bank systems. It drew the attention to the alternative financial forms like Islamic banking. The best known specialty of the Islamic bank system is the prohibition of interests and speculative transactions. The question is: are Islamic banks more crisis-resistant than the conventional banks? Are they really more stable? We would like to get answers for these questions through analyzing the four Islamic banks and four conventional banks with the same size in Turkey. We set up three hypothesizes: 1. The profitability of the Islamic banks was higher during the crisis than the profitability of the conventional banks. 2. The liquidity of the Islamic banks was higher during the crisis than the liquidity of the conventional banks. 3. The leverage ratio of the Islamic banks was higher during the crisis than the leverage ratio of the conventional banks. The time horizon of the research is from 2007 to 2013 and we get the data from the annual reports of the banks.

scholarly journals Framework for Managing Employee Talent in Malaysian Islamic Banks

2016 ◽  
Vol 2 (2) ◽  
pp. 109-116 ◽  
Author(s):  
Bidayatul Akmal Mustafa Kamil ◽  
Siti Norasyikin Abd Hamid ◽  
Shamsul Huda Abd Rani
Keyword(s):  
Banking Industry ◽  
Talent Management ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Law And Finance ◽  
Comprehensive Understanding ◽  
Organizational Policies ◽  
Policies And Procedures ◽  
Islamic Jurisprudence ◽  
Conventional Banks

Objective: This paper proposes a conceptual framework to formulate a model of employee talent management, which might be implemented among Islamic banks in Malaysia.Methodology: This concept paper relies on analysis of previous literature and observation of current issues in Islamic banking industry.Results: It has been found that the demand for combination of knowledge about Sharia law and finance among bankers is rising in the Islamic banking industry. The capability and expertise of current bankers in Islamic banks are overlapping with those found in conventional banks. Yet only those bankers who are equipped with knowledge of Sharia or Islamic jurisprudence can discriminate the discrepancy of Islamic banking terms and regulations.Implication: This study proposes that developing and retaining those talents should be focus of formal and informal organizational policies and procedures in Islamic banks in order to make their performance as a manageable outcome. The policy of right capabilities at right time among Islamic bankers would also lead to comprehensive understanding of the Islamic banking principles, nature and forms which is prerequisite to make this industry competitive in areas of marketing, financial and operation management.

scholarly journals SOCIALIZATION, LITERACY AND IMPLEMENTATION OF SHARIA BANKING PRODUCTS

2021 ◽  
Vol 1 ◽  
pp. 63-67
Author(s):  
Arini Fitria Mustapita
Keyword(s):  
Community Service ◽  
Rapid Growth ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Problem Identification ◽  
Implementation Evaluation ◽  
Service Activity ◽  
Banking Business ◽  
Three Stages ◽  
Conventional Banks

The banking world is currently experiencing rapid growth, new banks have emerged such as Islamic banks, so it is inevitable that a competitive and tight banking business will emerge. This service activity is expected to provide provisions for the participants to improve the Islamic economy. Understanding Islamic banking products will provide benefits for them in terms of the Islamic economy. The systematics of the implementation of this service activity is Socialization, Literacy and Implementation with the assisted subjects who are partners of this community service activity are Karang Taruna and Dinoyo Residents in Lowokwaru District, Malang City. The activity is carried out in three stages: problem identification, activity implementation, and implementation evaluation. The result of the implementation of this activity was that the participants expressed their gratitude to us for being allowed to take part in the Islamic banking literacy and socialization activities so that they could open their minds who had so far felt that conventional banks and Islamic banks were the same. This shows that the literacy and socialization of Islamic banking in society are still not active enough, so activities like this should be carried out more frequently.

scholarly journals MANAJEMEN RISIKO PADA BANK SYARIAH

2019 ◽  
Author(s):  
Afriyeni Afriyeni ◽  
Romi Susanto
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Liquidity Risk ◽  
Deep Understanding ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Legal Risk ◽  
The World ◽  
Banking Business ◽  
Conventional Banks

Research and experience over the last two decades has resulted in a deep understanding of issues relating to risk management and the principles of a well established risk faced by management. The company managers are increasingly recognizing the importance of risk management. In the context of risk management, the guidelines were implemented over the years, made only for conventional banks. Whereas players in the world and national banking business not only conventional banks, but has also been enlivened by banks with Islamic principles that number continues to increase from year to year. This paper gives an overview of how risk management in Islamic banking. In general, the risks faced by Islamic banking can be classified into two major parts. Ie the same risks faced by conventional banks and the risk that is unique because it must follow the principles of sharia. Credit risk, market risk, benchmark risk, operational risk, liquidity risk, and legal risk, Islamic banks must be faced. But, because they have to abide by the rules of Sharia, the risks faced by Islamic banks had to be different.

Is Islamic bank profitability driven by same forces as conventional banks?

2016 ◽  
Vol 9 (1) ◽  
pp. 46-66 ◽  
Author(s):  
Hajer Zarrouk ◽  
Khoutem Ben Jedidia ◽  
Mouna Moualhi
Keyword(s):  
Dynamic Panel Data ◽  
Islamic Banking ◽  
Subprime Crisis ◽  
Islamic Banks ◽  
Mena Region ◽  
Bank Profitability ◽  
Content Type ◽  
Large Sample ◽  
Islamic Bank ◽  
Conventional Banks

Purpose The purpose of this paper is to ascertain whether Islamic bank profitability is driven by same forces as those driving conventional banking in the Middle East and North Africa (MENA) region. Distinguished by its principles in conformity with sharia, Islamic banking is different from conventional banking, which is likely to affect profitability. Design/methodology/approach The paper builds on a dynamic panel data model to identify the banks’ specific determinants and the macroeconomic factors influencing the profitability of a large sample of 51 Islamic banks operating in the MENA region from 1994 to 2012. The system-generalized method of moment estimators are applied. Findings The findings reveal that profitability is positively affected by banks’ cost-effectiveness, asset quality and level of capitalization. The results also indicate that non-financing activities allow Islamic banks to earn higher profits. Islamic banks perform better in environments where the gross domestic product and investment are high. There is evidence of several elements of similarities between determinants of the profitability for Islamic and conventional banks. The inflation rate, however, is negatively associated with Islamic bank profitability. Practical Implications The authors conclude that profitability determinants did not differ significantly between Islamic and conventional banks. Many factors are deemed the same in explaining the profitability of conventional as well as Islamic banks. The findings reported in the current paper might be of interest for policy makers. It is recommended to better implement non-financing activities to improve Islamic bank profitability. Originality/value Unlike the previous empirical research, this empirical investigation assesses the issue whether Islamic banks profitability is influenced by same factors as conventional model. It enriches the literature in this regard by considering the specificities of Islamic banking to identify the determinants of profitability. Moreover, this study considers a large sample (51 Islamic banks) through a different selection of countries/banks than previous studies. In addition, the period of study considers the subprime crisis insofar it ranges from 1994 to 2012. Hence, this broader study allows the authors to draw more consistent conclusions.

scholarly journals Analysis of Indonesian Islamic and Conventional Banking Before and After 2008

2016 ◽  
Vol 8 (11) ◽  
pp. 193 ◽  
Author(s):  
Arfianti Novita Anwar
Keyword(s):  
Secondary Data ◽  
Rank Test ◽  
Islamic Banking ◽  
Positive Contribution ◽  
Islamic Banks ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
The Law ◽  
Conventional Banks

<p>This study aims to analyze the performance of Islamic banks and conventional banks before and after the implementation of Islamic Banking Act 2008. The performance will be measured using CAMEL ratio selected. This research is considered essential in examining the positive contribution of the application of the Act to improve the performance of Islamic banks in Indonesia. By using secondary data, this study compared the performance of Islamic banks with that conventional bank selected as samples during the study period. Data were analyzed using the Wilcoxon Signed Rank Test for inter-temporal and Mann-Whitney test for inter-bank. Inter-temporal Tests conducted on Islamic Banking showed that a significant difference was only seen in the NPF ratio of 2 years before and after implementation of Islamic Banking Act. As for conventional banks showed a more diverse ie for 1 year before and after the application of the Law on Islamic Banking there are significant differences for the ROA and ROE, two years before and after implementation of the Law Islamic banking there are significant differences for the CAR, ROA, ROE and NIM and for the overall test a significant difference to CAR, ROA, ROE, NIM and efficiency. Inter-bank testing showed that prior to the application of Islamic Banking Act there are significant differences between conventional banks and Islamic banks to CAR, ROA and efficiency. Furthermore, after the application of Islamic Banking Act there is a significant difference for the CAR and LDR / FDR.</p>

Sign in / Sign up

Export Citation Format

Share Document