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 BANK SYARIAH DALAM PERSPEKTIF FILOSOFIS,YURIDIS DAN SOSIOLOGIS BANGSA INDONESIA

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Ahmad Supriyadi
Keyword(s):  
Financial Institution ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Sociological Perspective ◽  
Philosophical Perspective ◽  
Islamic Bank ◽  
The People ◽  
Welfare Society ◽  
Conventional Banks

<p> Islamic bank is a financial institution that is essential for the people of Indonesia as an institution that is able to portray a welfare society with its products when it is implemented consistently. But the understanding of Islamic banks in the community is still in doubt because of Islamic bank same as conventional banks. Improper understanding of it can be explained by the philosophical, juridical and sociological.Islamic banking is a bank in its operations based on Islamic principles both in raising funds and mudaraba wadiah principles; in financing the purchase using the principles of Murabaha, salam and istishna; the issuing bank services products sharia apply the principle of al-wakalah,al-Hiwalah,al-qardh,al-kafalah, and al-Rahn. Three products when viewed legally has implemented of Constitution Number 21 concerning Islamic banking, and in a philosophical perspective in accordance with Pancasila, grand norm Constitution the 1945 and the Quran-Hadith, whereas in sociological perspective these principles have been entrenched in Indonesian society cooperation in agriculture "maro, mertelu" in livestock typically "mertelu", so it is said that the sociological principles of Sharia have been popular in Indonesia society.</p><p>Keywords:philosophy,juridical,sociology.<br /><br /></p>

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.

Farmers' perception and preference of Islamic Banking in Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mehmet Bulut ◽  
Harun Celik
Keyword(s):  
Logistic Regression ◽  
Agricultural Sector ◽  
Income Level ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Knowledge Level ◽  
Islamic Banks ◽  
Agricultural Finance ◽  
Content Type ◽  
Islamic Bank

PurposeThe purpose of this paper is to examine the factors that influence farmers' preference for the use of Islamic banks in Turkey and to investigate their knowledge level and perception about Islamic finance.Design/methodology/approachSurvey data used in this study is obtained by drawing a sample of 1902 farmers who are members of the Agricultural Credit Cooperatives Union (ACCU) from 37 provinces of Turkey. Pearson's Chi-square test is used to analyze the association between the demographic features of farmers, conventional bank usage and Islamic bank usage. Binary logistic regression model is used to estimate the factors influencing the preference for Islamic banks. Explanatory variables include knowledge on Islamic banking and finance, perception of compliance to religion, saving ability and cost concern along with the control variables of Islamic bank branch number in the region and age of respondent. Robustness check is conducted via alternative models using ordinary least squares (OLS) and logistic regression.FindingsLess than 10% of the participant farmers use Islamic banks and 59% declare they know nothing about Islamic banking. Age, education level, income level, nonagricultural income level, saving ability, duration of working in agriculture, land size and region are significantly related to farmers' preference of using Islamic banks. Knowledge level, perception of religious compliance, saving ability and cost concern are statistically significant factors that influence the probability of using Islamic banks.Research limitations/implicationsThis study does not include the analysis of the relationship between being religious and using Islamic banks because questions related to the assessment of religious practice were excluded due to the ACCU's sensitivity to investigate personal beliefs. Therefore, future studies can expand the scope of this research by investigating religiousness. The sample is chosen from the ACCU members who are already benefiting from a formal source of credit; therefore, the results should not be attributed to all farmers.Practical implicationsIslamic banks and microfinance institutions' further engagement in the agricultural sector and ACCU's implementation of Islamic finance instruments.Social implicationsIslamic banks' further diversification in the agricultural sector and ACCU's implementation of Islamic finance instruments.Originality/valueTo the best of the authors' knowledge, this paper is the first to investigate the farmers' perception and preference of Islamic banking in Turkey. The sample size of 1902 is much larger and geographically diversified compared to studies in agricultural finance. This study will be valuable for the agricultural finance empirical studies in Turkey as well as an important addition to the emerging literature on Islamic finance.

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.

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 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.

scholarly journals Studi kritis model perjanjian mudarabah pada perbankan syariah di Indonesia

2016 ◽  
Vol 15 (1) ◽  
pp. 119
Author(s):  
Muhammad Sjaiful
Keyword(s):  
Point Of View ◽  
The Other ◽  
Islamic Banking ◽  
Islamic Bank ◽  
Legal Standing ◽  
Dual Status ◽  
Conventional Banks ◽  
The One

The presence of Islamic Banking in Indonesia on the one hand it should be welcomed because it is aproof of the excitement of the majority of Muslims in the country to attempt to practice the teachingsof Islam in the life of the muamalah each other. But very unfortunate if the concept of Islamic Bankingis still graft the principles of usury-based conventional banks. As shown in the mudaraba agreementscheme practiced by some Islamic Bank is still causing some problems from the viewpoint of Sharia,including Islamic Banking legal standing as related parties in the mudaraba agreement itself, the dualstatus, on the one side and the other side as mud}a>rib as s}ahib al mal. Held dual status that Islamic Bankingcourse diametrically opposed to the principles of sharia. Another serious problem that was seized inMud}arabah current agreement scheme is a scheme which is essentially an agreement contract debtsbetween Islamic Bank is positioning itself as a cahib al-mal with customers who position themselves asmud}a>rib. Being stuck mud}arabah made Islamic Bank debts into the scheme of course is very dangerousfrom the point of view of sharia because it would trap the usury-based parties in the transaction. For thereconstruction of the model that needs to be done mudaraba agreement on Islamic banking thatmodels the agreement actually purely on the basis of pure sharia upright.

scholarly journals Non-Muslim Customer Switching Behavior In Islamic Bank In Indonesia

2022 ◽  
Vol 18 ◽  
pp. 136-143
Author(s):  
Hermanita Hermanita ◽  
Suci Hayati
Keyword(s):  
Switching Behavior ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Anova Test ◽  
Islamic Bank ◽  
Qualitative Approaches ◽  
Customer Switching ◽  
Conventional Banks ◽  
Post Hoc

The growth of Islamic banking in Indonesia has occurred significantly, one of which is in the Metro City area, Lampung Province, Indonesia. Many consumers have moved from conventional banks to Islamic banks, even this has happened to non-Muslim consumers. This study aims to describe the factors that influence the behavior of non-Muslim consumers in Metro City, Lampung Province, Indonesia, when choosing Islamic banking services over conventional banks. This is because the understanding of non-Muslim customer switching behavior is very important, especially for Islamic banking, where the application of religious principles is contained therein. This research was conducted using a mixed method with quantitative and qualitative approaches. Data collection was carried out by filling out questionnaires and interviewing 40 non-Muslim customers who became customers at Islamic Bank. Furthermore, the data were analyzed statistically using ANOVA test and Post Hoc Test to see the influence of the factors that gave the most significant influence. The results of this study indicate that the factors of price, reputation, service quality, promotion, product, location, profit, coercion, and recommendations from other customers have a significant effect on non-Muslim customers to switch to services to Islamic banks with a significance value of 0.000 at ANOVA test. Of the nine factors, recommendation factors from other customers (whether friends, relatives, or family), price, and profit are the most influencing factors.

scholarly journals DIGITAL BANKING REFLECTION AND ZAKAT ACCOUNTABILITY SHARIA BANKING IN INDONESIA

2019 ◽  
Vol 17 (2) ◽  
pp. 264-279
Author(s):  
Pertiwi Utami
Keyword(s):  
Artificial Intelligence ◽  
Human Resources ◽  
The Other ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Technological Advances ◽  
Digital Management ◽  
Potential Sources

ABSTRACT Digital banking and the accountability of good zakat can increase interest in paying zakat on the benchmarking of sharia. On the other hand, technological advances such as the use of artificial intelligence make the role of human resources shifted. Even though human resources (labor) are one of the potential sources of zakat revenue. Zakat literacy and interest in paying zakat are also low in Islamic banking. The researcher did not find zakat data in statistical reports on Islamic banks nationally. It seems that it was only found in the presentation of reports about the sources and uses of private Islamic bank zakat funds. This can lead to the perception that Islamic banks do not optimally manage zakat. Through literature studies, researchers provide a solution to how zakat management can be done to increase interest in paying zakat but can still maintain the use of human resources (work). The conclusion obtained is that interest in paying zakat on Islamic banks cannot be maximally realized if it is not supported by internal efforts. Efforts that can be made are transparency of zakat reports, increased literacy, acceleration and optimization of digital management of Islamic bank zakat.

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