scholarly journals Does Islamic Banking Augment Financial Inclusion in Pakistan? A Reinforcement Analysis

2020 ◽  
Vol 6 (4) ◽  
pp. 739-758
Author(s):  
Muhammad Hanif Akhtar ◽  
Imran Sharif Chaudhry ◽  
Muhammad Ramzan Sheikh
Keyword(s):  
Public Policy ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Panel Ardl ◽  
Ardl Approach ◽  
Specific Factors ◽  
Bank Specific Factors

This study spells out the role of financial inclusion (FI) to accelerate the efficiency of Islamic banks in Pakistan for the period of 2007 to 2016. It examines the effect of a specially developed broad-based FI index on technical efficiency of Islamic banks through panel ARDL approach along with to explore the macroeconomic as well as bank-specific factors of efficiency. The findings exhibit the possible connection between Islamic banking and financial inclusion in Pakistan. The study offers a variety of useful policy implications for public policy towards effective progress on the National Financial Inclusion Strategy in the country.

scholarly journals Peran Perbankan Syariah Dalam Mengimplementasikan Keuangan Inklusif di Indonesia

ETIKONOMI ◽  
2015 ◽  
Vol 14 (2) ◽  
Author(s):  
Novia Nengsih
Keyword(s):  
Low Income ◽  
Financial Inclusion ◽  
Islamic Banking ◽  
Ratio Analysis ◽  
Islamic Banks ◽  
Financial Ratio ◽  
Financial Condition ◽  
Financial Ratio Analysis ◽  
Axial Coding

The Role of Islamic Banks in Financial Inclusion ImplementationThis study aimed to analyze the role of islamic banks in implementing financial inclusion in Indonesia. Financial inclusion is a process to provide formal financial access for the poor and low income people (unbankable people). This study was designed which approached qualitatively and quantitatively (mixed research). The qualitative data analyzed by using Straruss and Corbin’s theory consisted three major  steps: open coding, axial coding, and selective coding. Quantitative analyzed by using comparative analysis of financial statements and financial ratio analysis such as CAR, ROA, ROE, NPF, and FDR period of 2010-2014. This study proved that Islamic banking had great potential in implementing financial inclusion, it was indicated by a significant increase in funding and financing since 2010-2014 and results of financial ratio analysis also shows the performance of Islamic banking and financial condition is good.DOI: 10.15408/etk.v14i2.2272

scholarly journals Aplikasi Konsep Wakalah dalam Pembayaran Zakat Simpanan: Kajian di Bank Islam Malaysia Berhad (BIMB)

2019 ◽  
pp. 333-354
Author(s):  
Norazira Sharif ◽  
Hairunnizam Wahid
Keyword(s):  
Economic Development ◽  
Research Question ◽  
Wealth Inequality ◽  
Policy Implications ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The People ◽  
Socio Economic Development ◽  
Banking Institutions

Zakat has played an important role in the socio-economic development of Muslims to reduce income and wealth inequality among the people of a country. The contribution of zakat for savings to the total amount of zakat collected by the zakat institution is still relatively small compared to the collection of income on zakat. The importance of paying zakat among Muslims, especially in term of zakat for saving has been previously debated and various programs have been implemented by the zakat institution to ensure that they are able to carry out their responsibilities by paying zakat. In providing Shariah-compliant products, BIMB has partnered with the zakat institution to assist them to increase the amount of zakat for savings. The research question is to what extent Islamic banking institutions can play a role in helping zakat institutions to increase the amount of zakat in savings. This study is important because there are not many studies related to these aspects, especially the role of Islamic banks in increasing the amount of zakat on savings. The objective of this study is to explore the mechanism that BIMB has put in place to implement the zakat on savings and investment on behalf of the depositors by using the concept of wakalah between depositors and banks. This study has referred to several BIMB reports and unpublished reports to investigate all these aspects. This study found that a comprehensive mechanism do exist for BIMB's role in acting as a representative (al-wakil) in paying zakat on savings on behalf of the client (al-mutawakkil). Several suggestions and policy implications are also discussed in this study. Abstrak Zakat telah memainkan peranan yang penting di dalam pembangunan sosio ekonomi umat Islam untuk memastikan kesaksamaan serta mengurangkan jurang agihan pendapatan dan kekayaan dalam kalangan rakyat di dalam sesebuah negara. Sumbangan zakat simpanan daripada jumlah keseluruhan kutipan zakat dilihat masih lagi secara relatifnya kecil berbanding kutipan zakat pendapatan. Kepentingan membayar zakat terutamanya zakat simpanan telah lama diwar-warkan dan pelbagai program telah dijalankan oleh pihak yang berwajib bagi memastikan golongan yang mampu menjalankan tanggungjawab mereka dengan membayar zakat. Dalam menyediakan produk patuh syariah Bank Islam telah berkerjasama dengan pihak zakat bagi membantu meningkatkan jumlah kutipan zakat simpanan. Persoalan kajian ialah sejauhmanakah institusi perbankan Islam boleh berperanan membantu pihak institusi zakat meningkatkan jumlah kutipan zakat ke atas simpanan. Kajian ini adalah penting kerana tidak banyak kajian yang berkaitan dengan aspek perbankan Islam yang turut sama berperanan meningkatkan jumlah kutipan zakat ke atas simpanan. Objektif kajian ini dilakukan untuk melihat mekanisme yang telah dilancarkan oleh pihak BIMB bagi membayar zakat simpanan dan pelaburan bagi pihak pendeposit mereka menggunakan konsep wakalah di antara pelanggan dan bank. Kajian ini merujuk kepada beberapa laporan Bank Islam dan laporan yang tidak diterbitkan untuk meneliti aspek tersebut. Kajian ini mendapati telah wujud satu mekanisme yang komprehensif peranan BIMB dalam bertindak sebagai wakil (al-wakil) dalam membayarkan zakat ke atas simpanan bagi pihak pelanggan (al-mutawakkil). Beberapa cadangan dan implikasi dasar turut dijelaskan dalam kajian ini.  

An Appraisal of the Role of Islamic Banking Development and Economic Growth

2020 ◽  
Vol 4 (4) ◽  
pp. 215-236
Author(s):  
Talat Hussain ◽  
Noman Arshed ◽  
Rukhsana Kalim
Keyword(s):  
Economic Growth ◽  
Resource Mobilization ◽  
Financial Inclusion ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Promoting Effect ◽  
Efficient Resource ◽  
Growth Promoting ◽  
Banking Development

Literature is well-versed with the contribution of financial inclusion from the deposit and financing size and its role in economic growth. These contributions include a boost in economic transactions and efficient resource mobilization. Islamic financial system is different from conventional banking as it distributes the risk equitably and promotes fairness in dealings. It helps in the integration of business gains as a borrower of Islamic capital with the earnings of savers as depositors. This study has proposed two channels via which Islamic financial development may incur growth. First is bank financing penetration, and second is depositor financial inclusion. Based on the data of 41 full-fledged Islamic banks between 2012 and 2017, the results show that both increases in bank and depositor returns have a growth-promoting effect. This prompts the policymakers with new insights. Policymakers should increase Islamic banking penetration to different sectors and regulate for increased extraction of the depositor contribution from the banking financing activity.

scholarly journals Standard Quality Banking Services of Islamic Banks

2018 ◽  
Vol 8 (1) ◽  
pp. 301
Author(s):  
Haneen A. Al-Khawaja ◽  
Barjoyai Bardai
Keyword(s):  
Islamic Law ◽  
Theoretical Aspect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
High Confidence ◽  
Banking Services ◽  
Standard Quality ◽  
Definition Of

This research discusses in detail the theoretical aspect of the quality standards of banking services of traditional Islamic banks. The criterion of "Shari'ah Compliance" was added by the researcher to the importance and role of dealing with Islamic banks, the definition of this standard and its importance, how to test it for banks as well as how, without the legitimate commitment of these banks to what is classified as Islamic from the foundation, we focus on the importance of the existence of a legal commitment to any Islamic bank to achieve the quality of Islamic banking services of high quality in accordance with Islamic law and laws to achieve a high confidence in the customers who belong to him and deal with his Conspiracy.

scholarly journals Murābaḥah-Taꜥāwun Financing: An Innovation in Islamic Personal Financing

2019 ◽  
Author(s):  
International Journal of Fiqh and Usul al-Fiqh Studies
Keyword(s):  
Financial Inclusion ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Critical Factors ◽  
Distribution Of Wealth ◽  
Financial Products ◽  
Muslim Countries ◽  
The World ◽  
Financial Contract ◽  
Up Scaling

Entrepreneurs, especially in developing societies, which include many Muslim countries among their fold, face a herculean task in up-scaling their businesses due to a lack of capital to procure relevant assets to grow their businesses. The world Islamic banks’ competitiveness report (2016) identified poor financial inclusion as one of the critical factors responsible for the uneven distribution of wealth in the Muslim world. This study presents the Murābaḥah-Taʻāwun financing product as an innovative addition to the range of financial products available on the Islamic banking shelf to reduce the incidence of poverty. Murābaḥah-Taʻāwun is operationalized where a group of entrepreneurs contribute funds together under a recognized Islamic bank while allowing every partner access to the fund on a rotational basis for the purchase of an asset according to a pre-defined arrangement. The study highlighted the importance of Murābaḥah-Taʻ''āwun as an Islamic financial contract by reviewing relevant extant literature. The proposed product shows that greater financial inclusion can be achieved without recourse to riba and thus will reduce poverty among Muslims.

The Role of Cognitive Responses as Mediators of Alcohol Warning Label Effects

1993 ◽  
Vol 12 (1) ◽  
pp. 57-68 ◽  
Author(s):  
J. Craig Andrews ◽  
Richard G. Netemeyer ◽  
Srinivas Durvasula
Keyword(s):  
Public Policy ◽  
Policy Issue ◽  
Policy Implications ◽  
Future Research ◽  
Cognitive Responses ◽  
Warning Label ◽  
Public Policy Issue ◽  
Future Research Directions ◽  
The Relationship

The authors examine an important public policy issue, namely, the effectiveness of federally mandated and proposed alcohol warning labels. Specifically, warning label cognitive responses are tested as mediators of effects of five different alcohol warning label types on label attitudes. On the basis of requirements for ANOVA-based mediation, net support arguments mediated 76% of the warning label treatment effect on label attitudes. Following requirements for regression-based mediation, net support arguments mediated the relationship from attitude toward drinking to label attitudes. Public policy implications and future research directions are provided.

scholarly journals THE ROLE OF FINANCIAL INCLUSION AND COMPETITIVE ADVANTAGE: EVIDENCE FROM IRAQI ISLAMIC BANKS

2019 ◽  
Vol 9 (3) ◽  
pp. 193-199
Author(s):  
Al-Duhaidahawi Hayder M. Kareem ◽  
Jing Zhang ◽  
Mustafa S. Abdulreza ◽  
Sinan Abdullah Harjan ◽  
Sayyed Sadaqat Hussain Shah
Keyword(s):  
Competitive Advantage ◽  
Financial Inclusion ◽  
Islamic Banks

Determinants of loan losses of Indian Banks: a panel study

2015 ◽  
Vol 9 (1) ◽  
pp. 17-32 ◽  
Author(s):  
Satyajit Dhar ◽  
Avijit Bakshi
Keyword(s):  
Public Sector ◽  
Panel Data Analysis ◽  
Capital Adequacy ◽  
Content Type ◽  
Specific Factors ◽  
Indian Banks ◽  
Loan Losses ◽  
The Impact ◽  
Bank Specific Factors

Purpose – The purpose of this paper is to examine the factors that influence the variability of loan losses (termed as non-performing advances or NPA in India) of Indian banks in the public sector during the period of five years from 2001 to 2005. Design/methodology/approach – The analysis is based on a panel approach, which considers both spatial and time dimensions of observations. Panel regression was used to explore the impact of different bank-specific factors on NPAs of 27 public sector banks (PSBs). Standard tests were used to find out suitability of different models of panel data analysis. Eight bank-specific factors were identified for analysis on the basis of review of extant literature. Findings – Certain bank-specific factors, in particular, net interest margin and capital adequacy ratio exhibit negative and significant impact on gross non-performing advances (GNPA) ratio of Indian PSBs. The results also suggest that relative quantum of sensitive sector (SEN) (comprised of commercial real estate, commodity and capital market) advances has a positive relationship with NPA ratio, and such a relationship is statistically significant. Research limitations/implications – The sample is restricted to India and may not be reflective of other countries. The study considers bank-level factors, and there are some macro factors (e.g. gross domestic product, interest rate and inflation rate) which could have explained the variability of GNPA ratio. Practical implications – Provisioning against loan losses is a major issue for stability of the banking system. Identification of appropriate causes of variability of such loan losses is important for managing credit portfolio of a bank. A positive and significant relationship between SEN advances and NPA calls for a more cautionary approach toward lending to those sectors. Originality/value – This paper is believed to be the first attempt to empirically examine the role of bank-specific factors. This study attempts to enrich empirical research in the field and provides an insight into the role of various bank-specific factors on loan losses in the context of Indian PSBs. The study provides contrary evidence regarding the role of priority sector advances on a GNPA ratio.

scholarly journals Faktor-faktor yang Mempengaruhi Minat Menabung di Bank Syariah Surakarta

2020 ◽  
Vol 2 (3) ◽  
pp. 167-172
Author(s):  
Ipfa Retno Astuti
Keyword(s):  
Linear Regression ◽  
Sampling Technique ◽  
Profit Sharing ◽  
Marketing Strategies ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank ◽  
Regression Tests

Abstract– This study aims to examine and analyze the effect of religiosity, profit sharing and service on interest in saving at the Surakarta Islamic Bank. The benefits that are expected to increase and provide knowledge related to the influence of religiosity, profit sharing and services on the interest in saving at the Surakarta Islamic Bank, can be used as material for community consideration and Islamic banking management to develop the role of Islamic banking and marketing strategies in Surakarta. The sampling technique was using purposive sampling technique. The population and sample in this study were 71 people who fit the specified criteria. The data were processed using SPSS, the tests carried out included instrument tests, classical assumption tests and multiple linear regression tests. The conclusion in this study is that religiosity has an effect on the interest in saving in Islamic banks in Surakarta. Profit sharing affects the interest in saving in Islamic banks in Surakarta. Services affect the interest in saving at a syariah bank in Surakarta.     Abstrak– Penelitian ini bertujuan untuk menguji dan menganalisis pengaruh religiusitas, bagi hasil dan pelayanan terhadap minat menabung di Bank Syariah Surakarta. Manfaat yang diharapkan dapat menambah dan memberikan pengetahuan yang berkaitan dengan pengaruh religiusitas, bagi hasil dan pelayanan terhadap minat menabung di Bank Syariah Surakarta, dapat digunakan sebagai bahan pertimbangan masyarakat dan manajemen perbankan syariah untuk mengembangkan peranan perbankan syariah dan strategi marketing di Kota Surakarta. Teknik pengambilan sampel menggunakan teknik purposive sampling. Populasi dan sampel dalam penelitian ini adalah 71 orang yang sesuai dengan kriteria yang ditentukan. Data diolah menggunakan SPSS , pengujian yang dilakukan meliputi uji instrumen, uji asumsi klasik dan uji regresi linier berganda. Kesimpulan dalam penelitian ini adalah religiusitas berpengaruh terhadap minat menabung di bank syariah surakarta. Bagi hasil berpengaruh terhadap minat menabung di bank syariah surakarta. Pelayanan berpengaruh terhadap minat menabung di bank syariah surakarta.

scholarly journals Nilai Etis Risiko dalam Investasi “Mudharâbah” yang Dilakukan Bank Islam Menuju Penanganan Fikih Perbankan (المخاطر الأخلاقية في المضاربة التي تجريها المصارف الإسلامية رؤية لمعالجة فقهية مصرفية )

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Hamzah Abdul Karim Hamad
Keyword(s):  
Islamic Banking ◽  
Islamic Banks ◽  
Ethical Values

Abstract: Ethical Values of Risk In Investing In “Mudharâbah” undertaken by Islamic Banks, towards the handling of Fiqh  Banking. This study aims at determining the risk in the behavior of speculation, the role of Islamic doctrine to alleviate and decrease the consequences and show the banking tools to alleviate them. The results of the study show some treatment of Islamic doctrine to decrease risks that originate from the results of speculation. The study shows that Islamic banking can control speculators using all methods, yet it is disallowed to speculate on the speculator’s profit for reasons that are shown in the context of the study. Also, the study also shows other means to alleviate these risks.Keywords:  ethical values risk, mudharâbah, investment, Islamic banks.Abstrak: Nilai Etis Risiko dalam Investasi “Mudharâbah” yang Dilakukan Bank Islam Menuju Penanganan  Fikih Perbankan.  Penelitian ini bertujuan menentukan risiko dalam perilaku spekulasi, peran doktrin Islam untuk meringankan dan mengurangi konsekuensi dan menunjukkan alat perbankan untuk meringankannya. Hasil penelitian menunjukkan ada beberapa perlakuan ajaran Islam dalam mengurangi risiko yang berasal dari  hasil spekulasi. Studi ini menunjukkan bahwa boleh mengontrol spekulan dengan menggunakan semua cara, namun tidak diizinkan untuk berspekulasi pada laba obligator spekulan sebagai alasan yang ditampilkan dalam konteks penelitian. Studi ini juga menunjukkan tentang cara lain untuk meringankan risiko ini.Kata Kunci: etika nilai risiko, mudharâbah, investasi, bank IslamDOI: 10.15408/ajis.v12i1.989

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