scholarly journals HOW SOCIAL ARE ISLAMIC BANKS IN PAKISTAN?

2021 ◽  
Vol 5 (1) ◽  
pp. 12-22
Author(s):  
Rafea Irfan
Keyword(s):  
Banking Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Research Paper ◽  
Social Outcomes ◽  
Annual Reports ◽  
Islamic Banking ◽  
Social Responsiveness ◽  
Islamic Banks ◽  
The Social

Purpose: This research paper attempts to prove that social outcomes are one of the objectives of Islamic banks and tries to investigate whether social failure exists in the Islamic banking sector of Pakistan by assessing the social performance of Islamic banks against performance indicators of social outcomes. Design/ Methodology/ Approach: In this paper content analysis of annual reports of a sample of 4 Islamic conventional banks and 4 Islamic banking units functioning in Pakistan is conducted. The social outcomes that are attempted to be measured of the Islamic banks in this research paper are derived from social objectives present in literature, in addition to this, Kinder, Lydenberg, Domini Research, 17 Sustainable Development goals of the United Nations, five Environment Social Governance scorecards developed by Oikocredit which is a global cooperative and social investor group, and Analytics index of corporate social performance are used for the derivation of social outcomes. Findings: Conventional Islamic banks in Pakistan are doing better than Islamic banking units on measures of social responsiveness. Originality/ Value: This research paper is based on the framework of the research paper “How social is Islamic banking” written on the Islamic banking sector of Indonesia by Luthfi Hamidi and Andrew C. Worthington. JEL Classification Codes: G0, G2, P4, Q3.

scholarly journals Socio-Economic Disclosure in Islamic Banking Case Study in Indonesia

2015 ◽  
Vol 1 (3) ◽  
pp. 185
Author(s):  
Atina Shofawati
Keyword(s):  
Community Involvement ◽  
Annual Report ◽  
Social Economic ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Annual Reports ◽  
Islamic Banking ◽  
The Social ◽  
Corporate Social ◽  
Economic Responsibility

Islamic Banking must give benefit for their stakeholders. Benefit reflects the performance of Islamic Banking which can be seen through their annual reports. One of important information which reflects the performance of Islamic Banking is socio-economicdisclosure. This report gives information about the performance of Islamic Banking which covers social and economic aspects which show the social economic responsibility of Islamic Banking. Socio-economic disclosure indicators have been taken from Corporate Social Performance which are the indicators consist of four parts, namely community involvement; human resources; natural resources and contribution to the environment; contribution to the product or service. This paper uses qualitative method. This research identifies the socioeconomic disclosure from annual report of Islamic Banking in Indonesia, majoring Bank Syariah Mandiri and Bank Muamalat Indonesia. The result of this paper shows that Bank Syariah Mandiri and Bank Muamalat Indonesia conduct social economic responsibility through socio-economic disclosure from annual report of both of the Islamic Banks in 2009.

scholarly journals How social is Islamic banking?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luthfi Hamidi ◽  
Andrew C. Worthington
Keyword(s):  
Content Analysis ◽  
Commercial Banks ◽  
Corporate Social Performance ◽  
Social Issues ◽  
Social Outcomes ◽  
Social Dimension ◽  
Annual Reports ◽  
Islamic Banking ◽  
Content Type ◽  
The Social

Purpose This paper aims to outline the argument for social outcomes as an objective for Islamic banks and investigate whether social failure exists in Islamic banking in Indonesia by assessing it against this performance dimension. Design/methodology/approach Content analysis of the annual reports of a sample of 12 Islamic commercial banks, seven Islamic banking units, and seven Islamic rural banks operating in Indonesia. The social outcomes to be measured employ the social objectives and disclosure measures from the prevailing literature, combined with the Kinder, Lydenberg, Domini Research and Analytics index of corporate social performance, the United Nations’ 17 Sustainable Development Goals and five Environment Social Governance Scorecards developed by Oikocredit, a global cooperative and social investor group. Findings Social failure evident in all Islamic rural banks and half of all Islamic commercial banks, but in only one of the seven Islamic bank units where most banks appear to pursue social outcomes at the accommodative level (accepting and doing all that is required). A social outcome-weighted asset formulation reveals Islamic banking has improved in meeting its social objectives over time, but sometimes at the cost of other objectives relating to the environment and customers. Research limitations/implications Single-country context for analysis and limited period of analysis given rapid growth of industry and less stringent reporting requirements in the past. Practical implications Islamic banking in Indonesia needs to continue to improve its social outcomes, particularly in relation to the environment and customer benefits. Social implications Emphasis on banking supervisory bodies to regulate and provide incentives for the industry to address the social issues upon which consumer support, industry efforts and regulation draws. Originality/value Few existing studies investigate the social dimension of Islamic banking, not least in Indonesia. Novel quantitative and qualitative application of content analysis.

scholarly journals Difference Analysis of Social Performance With The Islamic Social Reporting (ISR) in Syariah Banking That Are in Indonesia and Malaysia

2017 ◽  
Vol 1 (01) ◽  
pp. 53
Author(s):  
Aprila Dwi Widayati ◽  
Raditya Sukmana
Keyword(s):  
Sampling Method ◽  
Social Performance ◽  
Secondary Data ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Analysis Method ◽  
The Difference ◽  
Better Than

<p>The purpose of this research is to examine the difference of Islamic Social Reporting (ISR) disclosure level of islamic banking in Indonesia and Malaysia based on ISR index. The samples were selected by purposive sampling method. The samples that is used in this research is five islamic banks in Indonesia and five islamic banks in Malaysia. This research uses secondary data, that is annual report from 2010-2012. Annual reports were analyzed using content analysis method. Furthermore, the differences of ISR disclosure level were tested using independent sample t-test. The results showed that ISR disclosure level of islamic banking in Indonesia is better than ISR disclosure level of islamic banking in Malaysia. Based on the results of hypothesis testing, found that there are significant differences in the disclosure level between islamic banking in Indonesia and Malaysia.</p><p><br />Keywords: Islamic Social Reporting, Islamic Social Reporting Index, Islamic Banking</p>

Ethical consideration of Islamic banks in Pakistan: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fatima Khaleel ◽  
Pervez Zamurrad Janjua ◽  
Mumtaz Ahmed
Keyword(s):  
Banking Sector ◽  
Annual Reports ◽  
Survey Method ◽  
Future Research ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Ethical Values ◽  
Content Type ◽  
Islamic Bank ◽  
Finance Ethics

Purpose The purpose of this paper is threefold. First, it assesses communicated (information disclosed in annual reports and websites) ethical values of Islamic banks (IBs) by using an index based on Islamic precept. Second, this research paper analyzes the perception of employees working in IBs of Pakistan regarding previously mentioned dimensions constructed in the form of index. Third, it explores the difference (if any) between communicated and perceived ethical values of IBs in Pakistan. Design/methodology/approach This study incorporated two research methods, namely, content analysis (qualitative method) and descriptive analysis (quantitative method) to assess communicated and perceived ethical values. A checklist was designed that includes total six dimensions with 106 items or constructs. For perceived ethics, survey method is used to explore how far in practice IBs are operating in line with Islamic finance ethics in Pakistan by distributing questionnaires among employees. Findings This research study revealed overall satisfactory communicated and perceived ethical values in IBs of Pakistan. It is generally concluded that Meezan Bank is doing well in all dimensions as compare to other three banks in Pakistan. Some banks such as Dubai Islamic Bank and Albaraka Islamic bank lack proper format of annual reports. It recommended proper training and development of employees particularly about Islamic banking products and procedure. Moreover, it is recommended to take initiative of attracting female segment of the society and environment protection related campaigns. Research limitations/implications Because of data and time constraints, an extended beneficiary analysis could not be materialized in this study. Therefore, for future research, it is recommended to expand the stakeholders’ analysis beyond employees of IBs. Practical implications This study may be helpful for policymakers and other stakeholders to improve the image and for further growth of IBs in Pakistan. Social implications This study is the part of corporate social responsibility, so it will add value to social norms of banking sector and provide different dimensions and constructs based on Islamic ethical and moral system. It highlights banker’s responsibilities toward society. Originality/value This paper supports the phenomena of Islamic banking and finance in emerging markets and shows its potential growth for the economy.

scholarly journals Variables Determinants of Social Performance And Islamic Banking and Conventional variable differentiator Social Performance Among Both Cases in Indonesia

2018 ◽  
Vol 5 (10) ◽  
pp. 5060-5065
Author(s):  
Moch Shulthoni ◽  
Siti Maria Wardayati ◽  
Ririn Irmadariyani ◽  
Hendrawan Santosa Putra
Keyword(s):  
Human Capital ◽  
Discriminant Analysis ◽  
Capital Structure ◽  
Financial Performance ◽  
Multiple Regression ◽  
Commercial Banks ◽  
Social Performance ◽  
Annual Reports ◽  
Islamic Banks ◽  
The Social

This study aims to examine and analyze the effect of risk variables, governance, financial performance, capital structure, asset structure, intermediation and human capital functions on the social performance of sharia commercial banks and conventional commercial banks as well as to test and analyze the influence of risk variables, governance, financial performance, capital structure, asset structure, intermediation functions and human capital towards social differences in performance between conventional and sharia commercial banks. The type of research used in this study is explanatory research, roomates explains the influence of independent variables on the dependent variable and comparative research, the which is research that is used to explain variables that influence the differences in social performance of Islamic banks and conventional commercial banks. The Populations in this study are commercial banks (conventional) and Islamic public banks in Indonesia. The purposive sampling technique was used to Obtain samples items, namely commercial banks (conventional) and sharia commercial banks in Indonesia to publish audited financial reports, annual reports and Reviews those that corporate social responsibility reports submitted between 2013 - 2017. Technical Data analysis used multiple regression and discriminant analysis. The analysis in this study tested the hypothesis. Multiple regression is used to analyze variables that Affect the social performance of conventional commercial banks and Islamic commercial banks. While discriminant analysis is used to analyze what variables influence the social performance of conventional public commercial banks and Islamic banks in Indonesia. Based on the results of the analysis and discussion concluded that (a) the variables of governance, capital structure, asset structure of human capital, risk, intermediation function and financial performance have no significant effect on the social performance of sharia commercial banks; (B) risk and financial performance variables have a significant effect on the social performance of conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function have no significant effect on the social performance of conventional commercial banks and (c) the variables of risk and financial performance have a significant effect on the performance of social Distinguishing between commercial Islamic banks and conventional commercial banks. While the variables of governance, capital structure, asset structure of human capital, and intermediation function do not Significantly influence between social performance of commercial Islamic banks and conventional commercial banks.

scholarly journals Pengungkapan Tanggung Jawab Sosial Perbankan Syariah di Asia Tenggara

2019 ◽  
Vol 7 (1) ◽  
pp. 23-36
Author(s):  
Maesya’bani Maesya’bani ◽  
Sri Mulyati ◽  
Erina Maulidha
Keyword(s):  
Content Analysis ◽  
Social Responsibility ◽  
Research Method ◽  
Social Performance ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Bank ◽  
The Social

This study aims to measure the social responsibility disclosure of Islamic Bank inSoutheast Asia based on ISR index. The research method in this study is descriptivequalitative with content analysis in annual reports published on the website. Thepopulation in this study is Islamic banking in Indonesia, Malaysia and BruneiDarussalam from 2015-2017. The selected sample used a purposive samplingtechnique consisting of 20 selected Sharia Banks. The results showed overall, thepredicate level of disclosure of sharia banking social performance in Southeast Asiawas considered less informative with a score of 55.35%. Although the level ofdisclosure of social performance continues to increase every year.

scholarly journals ISLAMIC BANKING AND SOCIAL RESPONSIBILITY: STUDI KOMPARASI INDONESIA DAN MALAYSIA DENGAN PENDEKATAN ISLAMIC SOCIAL RESPORTING INDEKS DAN GLOBAL REPORTING INITIATIVE INDEKS

EKSPOSE ◽  
2019 ◽  
Vol 16 (2) ◽  
pp. 419
Author(s):  
Nispa Sari
Keyword(s):  
Content Analysis ◽  
Social Responsibility ◽  
Annual Report ◽  
Social Performance ◽  
Analysis Approach ◽  
Global Reporting Initiative ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Social ◽  
The Difference

This study aimed to compare the social performance between Islamic banking in Indonesia and Malaysia were measured by using a model of Islamic Social Reporting Index (ISR) and the Global Reporting Initiative Index (GRI). The objects of this study were drawn from four Islamic banks in Indonesia and three Islamic banks in Malaysia that meet certain criteria, namely; Islamic banking report annual report for 2010 and report the social responsibility disclosure. This study was used content analysis approach. The results showed that the overall average social performance of Islamic banking in Malaysia higher than social performance of Islamic banking in Indonesia. However, when tested statistically, the difference did not show significant value. Moreover, there are no Islamic banking in Indonesia and Malaysia reached a perfect level of social performance (100%) of the ISR and the GRI index.

scholarly journals Interest-free Financing: An Overview of Interest-free Finance in Turkey and Bangladesh

2020 ◽  
Vol 7 (2) ◽  
pp. 272-291
Author(s):  
Syed Magfur Ahmad ◽  
Saeyd Rashed Hasan Chowdury
Keyword(s):  
Banking Sector ◽  
Secondary Data ◽  
Research Paper ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Modern Times ◽  
Development Factor ◽  
Data Collection Process ◽  
History Of ◽  
Analytical Research

The research paper aims to analyses the overview of interest-free finance activities in Turkey and Bangladesh. The history of the intellectual efforts of the Islamic economy in modern times is date back to the 1950s. The interest-free finance system emerged with the claim of being an alternative to the aim of eliminating the complexity of the irregular order in the modern financial system. Emerging Bangladesh and developing turkey were started up their interest-free financing from the decade of 1980. Bangladesh started interest-free financing from 1983 by establishing Islamic bank limited regarded as the pioneer of Islamic banking in Bangladesh. Participation banks of turkey have been growing continuously since the year they started operations in 1985. Islamic banks Limited and Participation bank of turkey hold market share 24% and 5.3 % in their banking sector, respectively. Interest-free financing as a development factor within the framework of the implementation of multilateral projects that contributes to both country’s economy. This research paper considers qualitative and analytical research based on the secondary data collection process. Improving the regulation of financial organizations in interest-free financing that keep contributing to the development of infrastructure of Islamic finance activities for both Turkey and Bangladesh.

scholarly journals THE PROSPECTS FOR ISLAMIC SOCIAL BANKING IN INDONESIA

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
M Luthfi Hamidi ◽  
Andrew Worthington, ◽  
Tracey West ◽  
Rifki Ismal
Keyword(s):  
Growth And Development ◽  
Social Performance ◽  
Social Outcomes ◽  
Islamic Banking ◽  
Middle Income ◽  
Bank Financing ◽  
The Social ◽  
Corporate Social ◽  
Depth Interviews

Despite significant growth and development in recent years, Islamic banking (IB) continues to face widespread criticism given its apparently weak social outcomes. This study investigates the social performance of Islamic banking in Indonesia, including its justification as an IB objective and the means of improvement. We do this by surveying 506 current and potential Islamic banking customers across six Indonesian provinces, combined with in-depth interviews with 10 Islamic banking experts (regulators, practitioners, Syariah scholars, and academics). The findings strengthen previous results on the topic in that 42.89% of respondents consider that IB in Indonesia is defensive (doing the least that is required in terms of social outcomes), while 6.92% believe that it is reactive (doing less than that required). Of the remaining respondents, 34.78% consider the social performance as accommodative (doing all that is required) and 15.42% see it as proactive (doing more than is required). Most respondents (52.96%) suggest improvement by combining corporate social responsibility and the ZIS (Zakat, Infaq, shadaqah)-Waqf system. Only some (7.11%) suggest the establishment of Islamic social banking, whose main feature would be to design an alternative to collateral so that low- and middle-income customers could more readily access bank financing. We recommend that regulators and practitioners take action to address these weaknesses through incentives and long-term strategic planning.   

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

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