scholarly journals Distribution of Depositors’ Return and The Income Smoothing Hypothesis by Malaysian Islamic Banks

2018 ◽  
Vol 8 (1) ◽  
pp. 171-187
Author(s):  
Sulong Zunaidah ◽  
◽  
Mohd Noor Nurul Syazwani ◽  
Keyword(s):  
Income Smoothing ◽  
Islamic Banks

scholarly journals Pengaruh Ukuran Perusahaan, dan Leverange Terhadap Praktik Income Smoothing pada Bank Syariah

2020 ◽  
Vol 4 (1) ◽  
pp. 80
Author(s):  
Syawal Harianto ◽  
Haris Al Amin ◽  
Yusmika Indah
Keyword(s):  
Firm Size ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Income Smoothing ◽  
Islamic Banks ◽  
Analysis Method ◽  
Financial Leverage ◽  
Effect Model ◽  
Report Data ◽  
Test Result

This research is to know the effect of firm size, and financial leverage to Income Smoothing practices is Islamic Banks.  The data used is the secondary data with sourced from annual report data published by Islamic commercial banks and syariah business unit during 2016-2018 periods, samples research are 54 (fifty four) bank. Data analysis method using eviews with the fixed effect model. The result of the research shows that the simultan firm size and financial leverage have significant effect on Income Smoothing in Islamic banks.the partially, firm size an financial leverage has a positive and significant effect on income smoothin practices in Islamic banks City. The determination test result is 55%. Keywords: Firm Size, Financial leverage, Income Smoothing.

scholarly journals LENDING GROWTH AS A FIQH IMPLICATION TOWARD PRODUCT DEVELOPMENT OF ISLAMIC BANK IN INDONESIA

INOVATOR ◽  
2017 ◽  
Vol 6 (2) ◽  
pp. 69
Author(s):  
Riris Aishah Prasetyowati
Keyword(s):  
Product Development ◽  
Income Smoothing ◽  
Gdp Growth ◽  
Islamic Banks ◽  
Business Unit ◽  
Loan Loss ◽  
Loan Loss Provision ◽  
Islamic Bank ◽  
Gdp Growth Rate ◽  
Equity Ratio

This study aim to examine the financing growth of Islamic bank in Indonesia with the provisions system and proof that there is a procyclicality and income smoothing behavior of bank manager. The objects of this study are Islamic Banks and Islamic Business Unit in Indonesia period of 2000 – 2016. This study specifically estimates a different calculation in every component of discretionary and non-discretionary in Islamic bank financing with the variable controlsuch as deposit growth, equity ratio, and total asset. The equation will be tested by using the regression system estimation and the validity tested by AR and Hansen test. The result of this study quantitatively proved that there is a pattern of procyclicality behavior in Islamic bank consistent with hypothesis and significantly has negative correlation described by the relation of loan loss provision with the coefficient of GDP growth rate: -0,207. From this result in accordance with the fiqh platform, for all forms of muamalah is “al ashlufilmu?amalahilla al-ibahahyadulludaliil „alaatahriimiha” (the origin of everything is allowed unless there is proof that forbid it), which means that by using the theory of fiqh rules the product development of Islamic bank can be done and expanded.

Income smoothing behavior and the procyclical effect of loan loss provisions in Islamic banks

2019 ◽  
Vol 10 (1) ◽  
pp. 21-34 ◽  
Author(s):  
Sigid Eko Pramono ◽  
Hilda Rossieta ◽  
Wahyoe Soedarmono
Keyword(s):  
Fixed Effect Model ◽  
Income Smoothing ◽  
Islamic Banks ◽  
Loan Loss ◽  
Content Type ◽  
Loan Loss Provisions ◽  
Risk Increase ◽  
Effect Model ◽  
Prior Literature ◽  
Loan Growth

Purpose This study aims to test whether loan loss provisions in Islamic banks is procyclical by explicitly examining the link between non-discretionary provisions and loan growth. In the next stage, this paper tests whether the link between non-discretionary provisions and loan growth is conditional on bank capitalization and lending. This is to identify whether bank-specific factors affect the procyclicality of non-discretionary provisions and whether such procyclicality can be explained by income smoothing in banks with different capitalization and loan profiles. Design/methodology/approach This study is conducted in four stages. The first stage identifies the determinants of loan loss provisions. The second stage investigates whether income smoothing is affected by capitalization and lending activities. In the third stage, the link between non-discretionary provisions and loan growth is examined. In the fourth stage, this paper tests whether the link between non-discretionary provisions and loan growth is affected by bank capitalization and lending. A two-way panel-fixed effect model is used. Findings Non-discretionary provisions are procyclical, particularly for banks with lower capitalization and lending activities, because such banks do not conduct income smoothing. Specifically, banks with lower capitalization experience a decline in loan growth when non-discretionary provisions to cover credit risk increase. Research limitations/implications The dataset used in this study follows Soedarmono et al. (2017) and does not enable to differentiate types of financing products in Islamic banks that may exacerbate or mitigate the procyclicality of non-discretionary provisions. Originality/value This paper extends prior literature on the procyclicality of loan loss provisions by specifically investigating the influence of non-discretionary provisions on loan growth in Islamic banks and whether such relationship depends on the role of income smoothing undertaken by banks with different levels of capitalization and lending. This paper builds on the work of Soedarmono et al. (2017) in which they do not explicitly examine the relationship between loan loss provisions and loan growth.

Using social welfare concepts to guarantee Islamic banks’ deposits

2015 ◽  
Vol 8 (2) ◽  
pp. 134-149 ◽  
Author(s):  
Bassam Mohammad Maali ◽  
Muhannad Ahmad Atmeh
Keyword(s):  
Social Welfare ◽  
Risk Sharing ◽  
Income Smoothing ◽  
Islamic Banking ◽  
Investment Risk ◽  
Risk Shifting ◽  
Islamic Banks ◽  
Content Type ◽  
The Social ◽  
Islamic Financial Institutions

Purpose – The purpose of this paper is to examine the use of the social welfare concepts of Takaful and Tabarru’ (donations) as tools to guarantee deposits in the Islamic banking industry, and the effect of such practice on the concept of risk sharing in Islamic finance. Design/methodology/approach – The study critically analyzes the Mudaraba contract used by Islamic banks to mobilize funds, the use of Profit Equalization Reserves and Investment Risk Reserves, the use of other income smoothing techniques and the insurance of Islamic banks’ by regulatory agencies in some countries based on the Takaful and Tabarru’ concepts. Findings – This paper shows that Islamic banks are increasingly using the concepts of Takaful and Tabarru’, which are intended originally for social welfare, as tools to justify the move to more guaranteed-in-substance type of deposits, and hence, more risk shifting rather than risk sharing in the Mudaraba contract. This use, is argued, moves Islamic banking towards more market-oriented, but less Shariaa-compliant in substance. Research limitations/implications – This papers examined the behaviour of Islamic financial institutions and Islamic scholars based on the available literature. No empirical analysis was conducted. Originality/value – This paper contributes to the ongoing debate about the substance of Islamic banking transactions and the risk shifting inherent in such transactions. Furthermore, it is the first study that examines the extent of utilizing different social welfare concepts to legalize – from Shariaa perspective – Islamic banking transactions.

scholarly journals Income Smoothing Use Financing Loss Provision In Indonesia And Malaysia’s Islamic Banks

2021 ◽  
Vol 2 (1) ◽  
pp. 127-144
Author(s):  
Fadhilah Hanum Lubis ◽  
Sigid Eko Pramono ◽  
Saiful Anwar
Keyword(s):  
Mixed Method ◽  
Qualitative Method ◽  
Rapid Development ◽  
Income Smoothing ◽  
Financial Statement ◽  
Islamic Banking ◽  
Panel Regression ◽  
Islamic Banks ◽  
Positive Effect ◽  
Method Approach

Rapid development of Islamic banks leads to the requirement to compete in order to show the best performance. Performance assessment can be seen from the profit information. Income smoothing through the use of Financing Loss Provision (FLP) is one method that can be applied in Islamic banking in an attempt to get income based on their goals. This research aims to investigate income smoothing practice by using FLP at both Indonesia and Malaysia’s Islamic banks by applying mixed-method approach. In this regard, quantitive method was used to measure panel regression by using Eviews in order to analyze income smoothing practice through FLP in both Indonesia and Malaysia than qualitative method was used through interviews with practitioners and sharia supervisors in Indonesia to get the data about the practice. The data in this research were taken from 11 Islamic banks in Indonesia and 19 Islamic banks in Malysia from 2011 to 2016. The results of the research reveal that  Islamic banks in both Indonesia and Malaysia apply income smoothing by using FLP. The findings imply that Earning Before Taxes and Provision (EBTP) has significant positive effect on FLP. Moreover, the results of interviews indicate that Islamic banks in Indonesia do not apply income smoothing. However, there is an indication that they will lead to this condition. Therefore, it is suggested that the regulators will supervise the application of FLP by developing the investigation of this account in financial statement of the Islamic banks.

PENGARUH RISIKO TERHADAP KECENDERUNGAN PRAKTIK PERATAAN PENGHASILAN PADA BANK UMUM SYARIAH

2015 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Alwan Sri Kustono ◽  
Jehan Masagung Lasado
Keyword(s):  
Performance Practice ◽  
Balance Sheet ◽  
Financial Statements ◽  
Income Smoothing ◽  
Islamic Banks ◽  
Accounting Research ◽  
Islamic Bank ◽  
Income Statement ◽  
Monthly Period

Income smoothing is one of the interesting issues in accounting research. These matters could be occurred because income statement is one of the important parameters that can show company's performance. Practice of income smoothing arises because there was conflict between they are who have interest with the company's financial statements. This research is underlying from the number of income smoothing studies on the bank. Islamic Bank is one of the operational banks in Indonesia. Management of this bank still able has practice of income smoothing. The aimed of this study was to examine the influenceof risk toward income smoothing tendency on Islamic bank. This study used a sample of 144 income and balance sheet monthly period statements during the January 2010 up to December 2011, from 6 Islamic banks that listed in Bank Indonesia. By using the Eckel and Kustono index, this study found indication of income smoothing on Islamic banks in Indonesia. This study did not able to support the hypothesis that developed before so it can be conclude that the risk did not affect the income smoothing tendency on Islamic banks. Keywords: Income smoothing, Risk, Islamic Bank

Pengaruh Tingkat Literasi Keuangan Syariah dan Kepercayaan Masyarakat terhadap Minat Menabung di Bank Syariah

2020 ◽  
Vol 3 (2) ◽  
pp. 140-153
Author(s):  
Resti Fadhilah Nurrohmah ◽  
Radia Purbayati
Keyword(s):  
Financial Literacy ◽  
Linear Regression Analysis ◽  
Public Trust ◽  
Multiple Linear Regression Analysis ◽  
Primary Data ◽  
Public Confidence ◽  
Islamic Banks ◽  
Variable Level ◽  
Analysis Technique ◽  
The City

The purpose of this study was to study the level of Islamic financial literacy and public confidence in the interest in saving in Islamic banks. The variables in this study are the level of Islamic financial literacy (X1), public trust (X2), and interest in saving (Y).The method of this study is descriptive quantitative approach. The data source of this study are primary data obtained by distributing questionnaires. Respondents taken are residents in the city of Bandung, with samples domiciled in the city of Bandung and at least 17 years old. The data analysis technique uses multiple linear regression analysis. The results showed that the variable level of islamic financial literacy and public trust has positive effect in the interest in saving in Islamic banks. The findings in this study provide a reference to Islamic banks, the level of literacy and public trust regarding interest in saving, therefore Islamic banks must socialize to the public.

ALTERNATIF PERHITUNGAN RETURN SHAHIBUL MAL PADA SKEMA MUDHARABAH BANK SYARIAH

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Refky Fielnanda
Keyword(s):  
Rapid Development ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Theoretical Level ◽  
Method Of Calculation ◽  
Islamic Bank ◽  
Representative Office ◽  
Operational Practices ◽  
Computerized System ◽  
Practical Level

Abstract: The rapid development of the number of islamic banks should be balanced with the availability of infrastructure to carry out daily operational practices. The operational tools include hardware as like as representative office, computerized system, reliable human resources and software as like as method, culture and financial and islamic banking knowledge. In terms of development of Islamic finance is the paper "Alternative Calculation of Return Shahibul Mal on Mudharabah Scheme on Bank Syariah" was written. During this calculation of return shahibul mal has not been standardized in a formula, thus causing two serious effects. First, in the theoretical level, the formula has not yet created a difficulty. Secondly, in practical level, the formula is not impressive enough to recalculate the complexity of return calculations obtained by shahibul mall, causing laziness of the community using the services of islamic bank. This paper using mathematical and arithmetic equations with the help of modeling made by the author to refine and improve the method of calculation that has been available. The purpose of this paper is to create a standard formula that facilitates the calculation of return earned by a shahibul mal in a mudaraba scheme in a islamic bank.  

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