scholarly journals Satisfactions of Islamic Banks’ Costumers: The Case of Turkey

2013 ◽  
Author(s):  
Bengül Gülümser Kaytancı ◽  
Etem Hakan Ergeç ◽  
Metin Toprak
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Major Goal ◽  
Distinctive Features ◽  
Islamic Bank ◽  
Conventional Banks ◽  
High Level

Despite differences in the principles by which they operate between the participation (Islamic) and conventional banks, there is no huge difference between the products and the services provided by these banks. The distinctive features of the participation banks, compliance with the Islamic precepts, are not the only way for these banks to appeal to the customers. For this reason, customer satisfaction is an important element in the banking sector. The major goal of this study is to analyze the level of awareness and satisfaction among the customers of the participation banks. This study which uses the data compiled through the surveys held in Eskişehir with the participation of 500 Islamic bank customers reveals findings that suggest that most of the customers are satisfied with the products and services by the participation banks and that they have high level of awareness on the Islamic banking products.

Islamic bank rent

2014 ◽  
Vol 7 (2) ◽  
pp. 170-181 ◽  
Author(s):  
Yasushi Suzuki ◽  
S.M. Sohrab Uddin
Keyword(s):  
Empirical Evidence ◽  
Banking Sector ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Franchise Value ◽  
Conventional Banks ◽  
First Time ◽  
Rent Theory

Purpose – This paper aims to draw on the bank rent approach to evaluate the existing pattern of financing of Islamic banks and to propose a fairly new conceptualization of Islamic bank rent. Design/methodology/approach – The bank rent theory is adopted to generate the theoretical underpinnings of the issue. After that, empirical evidence from the banking sector of Bangladesh is used to support the arguments. Findings – Repeated transactions under murabaha are observed in the Islamic banking sector of Bangladesh. The asset-based financing gives the Bangladeshi Islamic banks relatively higher Islamic bank rent opportunity for protecting their “franchise value” as Shari’ah-compliant lenders, while responding to the periodic volatility in transaction costs of profit-and-loss sharing. Research limitations/implications – The bank rent approach suggests that the murabaha syndrome can be ironically justifiable. On the other hand, the current profit-and-loss sharing risk provides an idea of the difficulty in assuming the participatory financing with higher credit risk in practice. Islamic scholars and the regulatory authority need to design an appropriate financial architecture which can create different levels of rent opportunities for Islamic banks to avail the benefit from the variety of Islamic financing as declared by Islamic Shari’ah. Originality/value – This paper introduces a fairly new concept of “Islamic bank rent” to make sense of the murabaha syndrome. This approach also contributes to clarifying the unique risk and cost to be compensated with the spreads that Islamic banks are expected to earn. To draw empirical evidence, as far as it could be ascertained, the data of both Islamic banks and conventional banks with Islamic banking windows/branches are used for the first time.

Does the tag “Islamic” help in customer satisfaction in dual banking sector?

2019 ◽  
Vol 10 (1) ◽  
pp. 138-149 ◽  
Author(s):  
Fayaz Ahmad Lone ◽  
Ulfat Rashid Bhat
Keyword(s):  
Customer Satisfaction ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Level Of Satisfaction ◽  
Alternative Approach ◽  
Future Strategy ◽  
Conventional Banks

Purpose The purpose of this paper is to find out the importance of the tag “Islamic” in the title of banks. This will help to determine the future strategy of Islamic banks, while expanding to the countries where Islamic banking is seen as a religious banking and not an as an alternative approach to the conventional banking. Design/methodology/approach Adopting convenience sampling, a total of 596 customers of both Islamic and conventional banks were surveyed from four regions of Saudi Arabia (Makkah, Madinah, Riyadh and Dammam) using a self-structured questionnaire on a five-point Likert scale. Findings The results concede that Islamic banks without the tag “Islamic” and conventional banks have same customer satisfaction. There are some factors other than the tag “Islamic” which are driving customers towards Islamic banking. Those factors include physical aspects of the bank, level of satisfaction with the services, dealing and attendance by the staff and safety and security of the bank. Besides, the application of fundamental principles of Islamic banking works as a key motivation for customer satisfaction with Islamic banking. Practical implications Applying the tag “Islamic” is not as important as implementing the principles of Islamic banking. Islamic banks can survive and compete well even without using the “Islamic” tag if they implement the prime principles of Islamic banking and work on improving the factors highlighted by this study. This study can prove to be helpful in the expansion of Islamic banking in the countries where religious banking is not generally preferred by customers. Originality/value This is the first study to find out the customer satisfaction in a dual banking system (comprising of conventional banks and Islamic banks that do not use the tag “Islamic”), thereby filling the existing gap in the Islamic banking literature.

Do Islamic banks need to earn extra profits?

2019 ◽  
Vol 10 (3) ◽  
pp. 369-381 ◽  
Author(s):  
Yasushi Suzuki ◽  
S.M. Sohrab Uddin ◽  
Pramono Sigit
Keyword(s):  
Banking Sector ◽  
Islamic Law ◽  
Comparative Approach ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Banking Market ◽  
Conventional Banks ◽  
Credit Portfolio

Purpose This paper aims to draw upon existing debate over “financial sector rent” (bank rent) to analyze the current pattern of financing of Bangladeshi and Indonesian Islamic banks during the period of 2011 and 2015. Design/methodology/approach The empirical evidence through a comparative approach of analyzing the performance of Islamic banks with that of conventional banks in respective countries – two of the largest countries where majority of the population are Muslims – is drawn to demonstrate the objective. Findings While Islamic banks in Bangladesh are primarily concentrating on the murabaha (mark-up contract) mode of financing, some transactions under musharaka (partnership/equity-based contract) are observed in the Indonesian Islamic banking sector. This anomaly in Indonesia can be explained by the nature of their musharaka financing which is not of the purely “participatory” financing type. As a result, we can observe the quasi-murabaha syndrome in Indonesian Islamic banking sector. The concentration of asset-based financing including consumers’ financing (hire purchase) in the credit portfolio gives Islamic banks relatively higher Islamic bank rent opportunity for protecting their “franchise value” as Sharīʿah-compliant (Islamic law-compliant) lenders. However, Indonesian Islamic banks share a still infant Islamic banking market, and enjoy less rent opportunity under a severe competition with conventional banks. Research limitations/implications The bank rent approach suggests that the syndrome observed both in Bangladesh and Indonesia can be ironically justifiable. Moreover, the mode of profit-and-loss sharing provides, in practice, an idea of the difficulty in managing the participatory financing embedded with high credit risk. Under this scenario, it is necessary for Islamic scholars and the regulatory authority to design an appropriate financial architecture, enabling Islamic banks to avail the benefit from a wider variety of Sharīʿah-based Islamic financing. Originality/value This paper expands the newly emerged concept of “Islamic bank rent” to make sense of the murabaha syndrome in Bangladesh and the quasi-murabaha syndrome in Indonesia. This approach also contributes to clarifying the unique risk and cost to be compensated with the spreads that Islamic banks are expected to earn.

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 ANALISIS PERLAKUAN AKUNTANSI GADAI EMAS SYARIAH PADA BANK BJB SYARIAH KANTOR CABANG PEMBANTU KARAWANG

1970 ◽  
Vol 1 (1) ◽  
Author(s):  
Mumun Maemunah
Keyword(s):  
Islamic Banking ◽  
Islamic Banks ◽  
Business Unit ◽  
Islamic Bank ◽  
Conventional Banks

ABSTRAK: Undang-undang Nomor 21 Tahun 2008 tentang perbankan syariah, merupakan peraturan yang menjadi landasan perbankan syariah dalam menjalankan kegiatannya bank syariah melakukan inovasi-inovasi melalui produk yang ditawarkan agar tetap bisa bersaing secara sehat dengan bank konvensional.Praktek gadai emas pada dasarnya tidak melanggar hukum atau peraturan nasional. Bank Indonesia telah mengeluarkan peraturan mengenai produk-produk yang akan ditawarkan oleh Bank Syariah kepada nasabahnya. Yaitu melalui peraturan Bank Indonesia Nomor 10/17/PBI/2008 tentang Bank Syariah dan Unit Usaha Syariah. Praktek gadai emas pada dasarnya tidak melanggar hukum atau peraturan nasional. Bank Indonesia telah mengeluarkan peraturan mengenai produk-produk yang akan ditawarkan oleh Bank Syariah kepada nasabahnya. Yaitu melalui peraturan Bank Indonesia Nomor 10/17/PBI/2008 tentang Bank Syariah dan Unit Usaha Syariah. Kata Kunci : Akuntansi, Gadai Emas, Syariah ABSTRACT: Law No. 21 of 2008 concerning Islamic banking, the rules that form the basis of Islamic banking in performing activities of Islamic banks make innovations through products offered in order to remain able to compete fairly with conventional banks. The practice of pawning gold is basically not violate national laws or regulations. Bank Indonesia has issued a regulation regarding the products that will be offered by the Islamic Bank to its customers. Namely through regulation of Bank Indonesia Number 10/17 / PBI / 2008 regarding Sharia Bank and Sharia Business Unit. The practice of pawning gold is basically not violate national laws or regulations. Bank Indonesia has issued a regulation regarding the products that will be offered by the Islamic Bank to its customers. Namely through regulation of Bank Indonesia Number 10/17 / PBI / 2008 regarding Sharia Bank and Sharia Business Unit. Keywords: Accounting, Gold Pawn, Sharia

scholarly journals Assessing satisfaction among Islamic Bank Customers’ in Bangladesh

2018 ◽  
Vol 10 (3) ◽  
pp. 1377-1405
Author(s):  
Kashrima Nawreen ◽  
Suhaily Shahimi
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Significant Relationship ◽  
Islamic Banks ◽  
Contrast Level ◽  
Significant Percentage ◽  
Independent Variables ◽  
Islamic Bank ◽  
Long Run ◽  
Conventional Banks

This study is conducted to assess the level of customer satisfaction in Islamic banks from the context of Bangladesh.  In the process, 300 questionnaires were distributed, and 236 were returned completed.  The results of the questionnaire analysis reveal that there is significant relationship between three of the independent variables, namely- tangible products, personnel service quality and level of commitment to customer satisfaction.  In contrast, level of compassion does not have a significant relationship with customer satisfaction.  The analyses further reveal that the respondents were satisfied with the overall Islamic Banks’ infrastructure operating in Bangladesh, and most of the respondents did not have intentions to switch to the conventional counterparts.  However, the main reason for the account holders to switch to Islamic banks is because they wanted to deal with Shahriah compliant banking.  The analyses also indicate that a significant percentage of the respondents have accounts with both Islamic banks and conventional banks.  The study has suggested that Islamic Banks should enhance Shahriah compliant framework to generate more income, experience speedy growth, and remain sustainable in the long run. 

scholarly journals Board of director’s characteristics and bank performance: Evidence from GCC region

2019 ◽  
Vol 17 (1) ◽  
pp. 14-23 ◽  
Author(s):  
Ehab R. Elbahar
Keyword(s):  
Audit Committee ◽  
Banking Sector ◽  
The Political ◽  
Bank Performance ◽  
Islamic Banks ◽  
Board Of Director ◽  
Gulf Countries ◽  
Risk Committee ◽  
Conventional Banks ◽  
High Level

The main purpose of the current study is to examine the association between Corporate Governance’s (GC) variables represented by board characteristics and Bank performance measured by ROE and ROA in GCC banking sector. For the purposes of this study, the sample of 68 banks in gulf countries during the period from 2013 to 2017 have been selected and divided the data to Islamic banks and conventional banks (16 Islamic banks, 52 Non-Islamic). Furthermore this study uses the nonparametric regression OLS and Quantile analysis. The current study suggest that the existence of female directors on the board of director in last years is significantly associated with better performance, we concludes that females in GCC banking sector in latest years reached a high level of maturity in understanding banking industry. Furthermore, this study suggests that the audit committee associated positively and significantly with bank performance, it means that the audit committee in latest years plays important role in enhancing the performance. In addition to the above, the political member on the board and risk committee does not affect the performance significantly. Both of board size and Sharia committee are associated positively and significantly with performance.

scholarly journals Examining the Nexus between Riba and Gharar, and Islamic Banking Products Among Zanzibar People

2021 ◽  
pp. 27-34
Author(s):  
Hamad Mohammed Shkeily ◽  
Naziruddin Abdullah
Keyword(s):  
Hypothesis Test ◽  
Reliability And Validity ◽  
Income Level ◽  
The Other ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Other Hand ◽  
The People ◽  
Conventional Banks

This paper aims at examining the nexus between riba, gharar and income level, and Islamic Banking Products among Zanzibar people. The Islamic bank products such as Murabahah, Musharakah, Mudarabah, Ijarah, Hawalah, Takaful and Sukuk were considered as independent variables for this study. On the other hand, the dependent variables investigated were three (3) namely riba, gharar and income level. A total of 116 respondents consisting of Zanzibar people residing in different districts responded to the survey questionnaire via google form. The study used statistical techniques to analyse the collected data in terms of demographic, descriptive, reliability and validity analysis and presented by charts, tables and curves. The hypothesis test has been conducted using correlation analysis. Statistically, the finding revealed that, the people of Zanzibar were against Riba but in favour of Murabahah, Musharakah, Mudarabah, Ijarah, Hawalah, Takaful and Sukuk with p≤0.01. The result also revealed that the people of Zanzibar were against gharar with p≤0.01. On the other hand, income level showed a significant correlation against Mudarabah, Ijarah, Hawalal, Takaful and Sukuk as p≤0.01. These findings suggest that the products and services of Islamic banks have a significant relationship with Riba, Gharar and level of income for Islamic banks’ shariah priority. It is also shown that riba and gharar were significantly impacted the people of Zanzibar for the influence on the acquisition of Islamic bank facilities which are vital on direct effects that attract customers and investors in which they are customised from conventional banks products. As the awareness level from these Islamic products are high, it is recommended that Islamic banks should focus in designing Islamic banks products (Murabahah, Musharakah, Mudarabah, Ijarah, Hawalah, Takaful and Sukuk) that will comply with Shariah requirement.

scholarly journals COMPARISON OF ISLAMIC BANKING PERFORMANCE IN INDONESIA, PAKISTAN, AND BANGLADESH: SHARIA MAQASHID INDEX APPROACH

2021 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Mohammad Nur Rianto Al Arif ◽  
Dede Yati
Keyword(s):  
Performance Indicators ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Index Approach ◽  
And Performance ◽  
Conventional Banks ◽  
The One ◽  
Islamic Values ◽  
One Way Anova

There is a different characteristic between Islamic banks and conventional banks, so Islamic banks must have performance measures based on Islamic values in them. This study aims to measure the performance of Islamic banks in three countries - Bangladesh, Indonesia, and Pakistan - using the Sharia Maqashid Index. Also, this study examined whether there were differences in Sharia Maqashid Islamic bank indexes in the three countries using the one-way ANOVA test. The results of the study, in general, showed that the Al-Arafah Islamic Bank of Bangladesh received the highest score, followed by Bank of BNIS and Bank of BRIS. Besides, the results of the study also showed that there were differences in performance. This result implies that Islamic banks should use the maqashid sharia framework as a benchmark for their objective and performance indicators.========================================================================================================ABSTRAK – Perbandingan Kinerja Perbankan Syariah di Indonesia, Pakistan, dan Bangladesh: Pendekatan Indeks Maqashid Syariah. Terdapat perbedaan karakteristik antara bank syariah dan bank konvensional, sehingga ukuran kinerja bank syariah harus didasarkan pada nilai-nilai syariah yang terdapat di dalamnya. Penelitian ini bertujuan untuk mengukur kinerja bank syariah di tiga negara yaitu Bangladesh, Indonesia, dan Pakistan dengan menggunakan Sharia Maqashid Index. Selain itu, penelitian ini juga menguji apakah ada perbedaan indeks bank syariah Maqashid Syariah di tiga negara dengan menggunakan uji one-way ANOVA. Hasil penelitian secara umum menunjukkan bahwa Bank Islam Al-Arafah Bangladesh memperoleh skor tertinggi, disusul oleh Bank BNIS dan Bank BRIS. Selain itu, hasil penelitian juga menunjukkan adanya perbedaan kinerja di tiga negara tersebut. Hasil ini menyiratkan bahwa bank syariah harus menggunakan kerangka maqashid syariah sebagai tolok ukur tujuan dan indikator kinerjanya.

scholarly journals Analisis Akad Mudharabah di Perbankan Syariah

2017 ◽  
Vol 11 (1) ◽  
pp. 16
Author(s):  
Hidayati Nasrah
Keyword(s):  
Islamic Banking ◽  
Islamic Banks ◽  
Gift Giving ◽  
Islamic Bank ◽  
Ownership Status ◽  
Conventional Banks

This study tried  to  see  mudharabah  practices  by  Islamic banks, whether the implementation  and practice  mudharabah  is in accordance with  Islamic Shari'a. In this study  also  described  the practice of  gift-giving  in early  when customers  deposit  funds  in Islamic banks. Practices  carried out  by the  Islamic Bank  raises  a lot of  criticism from  people who think  that  Islamic banks  are notdifferent from conventional banks, only  the title  that  sharia. The study was conducted  with descriptive methods,  compare  theory  derived  from the study ofliterature  with the practice  in the field. The study found  there are many  Islamic banking  practices  in the implementation of  mudharabah,  particularly in terms ofcapital ownership  status  and responsibility  to bear  the risk  violate  what  isoutlined in the  Shariah. In  terms of  gift-giving  at the beginning, it was found  thatthe gift  made  Islamic banks  with  a specific purpose,  grant  can not be  justified  inShari’a.

Sign in / Sign up

Export Citation Format

Share Document