scholarly journals Assessment of Macroeconomics Determinants on Islamic Banking Profitability and Liquidity in United Arab Emirates and Tanzania

2021 ◽  
pp. 17-28
Author(s):  
Omar Salim Ali
Keyword(s):  
United Arab Emirates ◽  
Statistical Significance ◽  
Unit Root Test ◽  
Secondary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Macroeconomic Variables ◽  
Islamic Bank ◽  
Distributed Lag ◽  
Per Capita

Aims: This paper studies the determinants of Islamic banking profitability and liquidity in the United Arab Emirates (UAE) and Tanzania. It was comparative study. The study gives empirical comparisons between Islamic banks in United Arab Emirates (UAE) and Tanzania in their performance bases. Study design:   This study covers the samples of five (5) Islamic banks where by two (2) banks from Tanzania that are People Bank of Zanzibar in Islamic branch (PBZIB) and Amana Islamic bank (AIB).  In the side of United Arab Emirates (UAE) three (3) Islamic banks were selected which includes   Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAD) this is not an IB and Emirates Islamic Bank (EIB).  The study used secondary data of selected variables which employing panel data for the period of ten (10) years from 2010- 2019. Due to data was on panel bases which includes the two independents variables. Methodology: To calculate profitability, the Return on Assets (ROA) was used and in liquidity in IBs deposit ratio (LDR) used to measure the liquidity .The study uses descriptive statistical analysis, correlation, multiple regression analysis for two equations according to settled objectives. The three macroeconomic variables were selected that are Gross Domestic Product per capita (GDP), inflation (INF) and exchange rate (EXCH). An autoregressive distributed lag (ARDL) model was applied because the result becomes mixed in the unit root test. Results: The findings reveal satisfactory evidence that all selected variables are statistical significance in long run relationship except inflation in UAE. The outcomes of the study indicated that selected macroeconomic variables (GDP per capita, Inflation and exchange rates have a major 5% effect on bank profitability and liquidity in Tanzania and the United Arab Emirates. Conclusion: The study therefore recommends the Tanzania Islamic banks should adopt several policies in order to control the liquidity which is very difference like UAE banks.

scholarly journals A Research on the Satisfaction of Islamic Banking Customer Services in Riau Province During the Covid-19 Pandemic

2021 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
Boy Syamsul Bakhri
Keyword(s):  
Field Research ◽  
Secondary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Customer Data ◽  
Islamic Bank ◽  
Proportional Allocation ◽  
Analysis Technique ◽  
Customer Services ◽  
Ease Of Access

This research is motivated by curiosity about Islamic banking services in Riau Province during the Covid-19 pandemic. But before that, it is also important to examine customer knowledge on products and service facilities in Islamic banking, reasons customers choose Islamic banks, and reasons customers use both types of banks (Islamic banking and conventional banking). This research is a field research with survey technique. The population is Islamic banks customers in Pekanbaru and the samples in this study refer to the calculation of Hair et al with total assets of Islamic banks in 2020 as a consideration in determining proportional allocation. Sources of data in this research are primary and secondary data. While the data collection techniques using questionnaires and documentation. The data analysis technique uses descriptive statistics with a frequency distribution. The results of the research found that there are still many Islamic bank customers who do not know about specific Islamic bank products such musyarakah products, mudharabah products, ijarah products,and rahn services. The results also found that religious reasons are the main factor for customers in choosing of Islamic banks. The factor of ease of access to more branches is the main reason customers use both types of banks. Finally, the results of the research found that the most Islamic bank customers are satisfied with various aspects of the services provided by Islamic banks, while the five service aspects whith the highest level of customer satisfaction are Islamic bank staff friendliness, Islamic bank name and image, Islamic bank employee skills, confidentially Islamic bank customer data, as well as various kinds of facilities offered by Islamic banks. The results of this research are ini line with studies that have been conducted in Jordan and Kuwait, where the highest level of satisfaction is found in the name and image aspects of Islamic banks even though there are differences in respondent demographics and the condition of the Covid-19 pandemic.

scholarly journals Demand Elasticity Analysis of Islamic Banking Financing in Indonesia

2017 ◽  
Vol 2 (01) ◽  
pp. 61
Author(s):  
Eka Fitriyanti
Keyword(s):  
Secondary Data ◽  
Ordinary Least Squares ◽  
Demand Elasticity ◽  
Islamic Banking ◽  
Regression Equations ◽  
Islamic Banks ◽  
Elasticity Analysis ◽  
Income Per Capita ◽  
Elasticity Of Demand ◽  
Per Capita

<p>This research aims to analyze the elasticity of demand for Islamic bank's financing in Indonesia. The variables observed in this study is inflation and income per capita. This research uses time series of data for the period 2004-2015, which is a secondary data. The Data is sourced from the central bank of Indonesia and Indonesian Central Bureau of Statistics, the models used in this study is a model of multiple regression equations and Analyzed using Ordinary Least Squares (OLS). Based on the estimates, the Research found that the inflation and income per capita significantly influence elasticity of demand for Islamic bank's financing in Indonesia. The elasticity of demand for Islamic bank's financing is inelastic to changes in price. This means that the demand Islamic bank's financing in Indonesia are not sensitive to changes in price. So, Islamic banks must be-able using other factors for growth Reviews their financing.</p><p><br />Keywords: Elasticity of Demand, Income per Capita, Inflation, Islamic bank’s financing</p>

scholarly journals Multi Contract as A Legal Justification of Islamic Economic Law for Gold Mortgage Agreement in Islamic Bank

2019 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Deni Kamaludin Yusup
Keyword(s):  
Relevant Literature ◽  
Secondary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Empirical Methods ◽  
Islamic Bank ◽  
Economic Law ◽  
Debt Security ◽  
Legal Justification ◽  
Islamic Economic

In recent years, the gold mortgage agreement has become one of the excellent products in Islamic banks. Practically, the gold mortgage agreement to the customer uses the principle of qard with the guarantee of gold in question through the pledge agreement (al-rahn). Gold as a property shall be the object of debt security placed in the control and maintenance of the Islamic bank with certain fee (al-ijarah). The selected object is focused on the multi-contract of gold mortgage agreement at PT. Bank Syariah Mandiri Tbk. This research uses the combination between bibliographical and empirical methods which is supported by primary and secondary data from relevant literature and interview with the informan, and also analysis of the data uses deductive-inductive approach. The result of this study indicates that gold mortgage agreement at PT. Bank Mandiri Syariah used sharia multi-contract or mutanaqishah contract, in which there were combining gratuitous contract (al-tabarru’) and compensational contract (al-tijarah). In the classical Islamic economic law perspective, it looks like a legal justiciation (hilah syar’iyyah) which prohibited taking the excessive benefits from the provision of additional debt (al-ziyadah) and other benefits to cover usury in the practice of ujrah for custodial services, but some opinion of legal jurits allowed it based on the reason that it is included in hilah syar’iyyah mahmudah and also relevant to the principle of adillah al-syar’iyyah and Fatwa DSN-MUI Number: 25/DSN-MUI/III/2002 on Rahn, Article 1320 Civil Code, and the Islamic Banking Law Number 21 of 2008.

scholarly journals Does the Volatility of Macroeconomic Variables Depress The Profitability of Islamic Banking?

JEJAK ◽  
2020 ◽  
Vol 13 (1) ◽  
pp. 30-42
Author(s):  
Agus Widarjono
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Negative Impact ◽  
Islamic Banking ◽  
Macroeconomic Variables ◽  
Islamic Bank ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Exchange Rate ◽  
The Impact

Islamic banking in Indonesia has been growing rapidly since 2010. The  profitability of Islamic bank depends on Islamic bank characteristics and macroeconomic condition. As a country with an open economy, macroeconomic conditions are very volatile. Through the theory of exchange rate pass through, the exchange rate fluctuation affects domestic prices so that it affects the profits of Islamic bank.  This study analyzes the impact of the instability of the macroeconomic variables, namely the exchange rate and inflation on the profitability of Islamic bank. The instability of inflation and exchange rate are measured using the GARCH  (Generalized Autoregressive Conditional Heteroskedasticity). This study applies ARDL  (Autoregressive Distributed Lag Model). The data used is monthly data starting from January 2011 to June 2018. The results of the study show that the exchange rate and inflation instability depress the profitability of Islamic banki. More interestingly, instability of inflation has a greater negative impact than the instability of exchange rate on Islamic bank profit. The most Islamic bank characteristics influencing Islamic banking profit was bad financing as known as a non performing financing (NPF).

scholarly journals Apakah Sukuk Ritel Merupakan Ancaman Bagi penghimpunan Dana Pihak Ketiga Pada Bank Syariah?

2020 ◽  
Vol 25 (2) ◽  
pp. 182
Author(s):  
Muhammad Syakur
Keyword(s):  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Least Square ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Ordinary Least Square ◽  
Analysis Techniques ◽  
Independent Variables ◽  
Islamic Bank

This research is a quantitative study that aims to consider the effect of retail sukuk on the collection of third parties funds (TPF) in Indonesian Islamic Banks for 2015 - 2019. The data used are secondary data retrieved from Islamic Banking Statistics Report for shariah commercial and unit shariah bank quarterly. The method is multiple linear regression analysis techniques with Ordinary Least Square (OLS) approach, using TPF as the dependent variable while Retail Sukuk, ROA, Promotion Cost, Inflation and Bi rate as the independent variables. The results shows Retail Sukuk has a negative and significant impact on the collection of TPF which is intended that retail sukuk is causing the decrease of TPF amount in Indonesian Islamic bank. Therefore the Indonesian government needs to review the policies related to retail sukuk issuance in order to synergize with the development of Islamic Banks. Other results indicate that ROA and promotion costs have positive and significant influance for TPF collection in Indonesian Islamic bank while BI rate is the opposite.

scholarly journals EFFECT ON THE PERFORMANCE OF ETHICS DISCLOSURE OF IDENTITY IN ISLAMIC BANK INDONESIA (STUDY IN ISLAMIC BANKING COMPANIES LISTED IN BANK INDONESIA, 2008-2018)

2019 ◽  
Vol 7 (12) ◽  
pp. 326-332
Author(s):  
Muhammad Nur Syuhada
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Industry ◽  
Public Companies ◽  
Islamic Bank ◽  
Ethical Identity ◽  
Good Reputation

Strive for innovative Islamic banking in offering products and building a good reputation in following the development of the Islamic financial industry to trigger an increasingly competitive level of competition. Building a good reputation is largely determined by the identity of the company itself. Islamic banking has a higher moral responsibility than conventional banking or other public companies because there are social values ​​and justice that must be met. study This was conducted to reveal that ethical identity significantly influences the financial performance of Islamic banking companies which have restrictions on Islamic commercial banks in Indonesia. This research will be conducted using secondary data in the form of annual reports issued from Islamic banks in Indonesia from 2008-2018 through the websites of each Islamic bank. The population of this study is Sharia banks that are listed on the Indonesia Stock Exchange or listed at Bank Indonesia. The update of this study is that this research will replace the measurement variable profitability from ROA to NPM and change the year from 2008-2018 compared to the previous study, using only the period 2010-2013.

scholarly journals Relationship among Energy Consumption, Inflation, Human Capital and Economic Growth: Evidence from Indonesia

2020 ◽  
Vol 6 (2) ◽  
pp. 85
Author(s):  
Mohammed Hadi ◽  
George Campbell
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Energy Consumption ◽  
Unit Root Test ◽  
Secondary Data ◽  
Time Frame ◽  
Gdp Per Capita ◽  
Distributed Lag ◽  
Per Capita ◽  
Human Capital Index

The main focus of the study was to evaluate the relationship among energy consumption, human capital, inflation and economic growth in the case of Indonesia. The study uses secondary data to conduct the study on Indonesia. The rationale behind selecting the secondary data collection method is to draw the analysis and results on the basis of existing information rather than relying over human perspective of opinions. The data in the study consist of energy consumption, human capital index, GDP per capita and inflation. The time frame that is selected for the collection of data is from 1970 till 2018 which overall makes the time period of 49. The tools that are adopted for conducting the analysis is the unit root test and autoregressive distributed lag (ARDL). The result of the study has revealed that the human capital has a significant influence on the energy consumption of Indonesia. The other elements that are also found to have significant impact are the lag of energy consumption, GDP per capita and lag of GDP per capita. With the higher consumption of energy along with the increasing human capital is significantly and positively influencing the GDP growth of Indonesia.

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.  

EFEKTIVITAS PEMASARAN BANK SYARIAH MENGGUNAKAN MEDIA SOSIAL INSTAGRAM DI INDONESIA” (Studi Kasus pada PT. BNI Syariah)

Paradigma ◽  
2020 ◽  
Vol 17 (1) ◽  
pp. 1-15
Author(s):  
Indriyani ◽  
Rizal Fahlevi
Keyword(s):  
Social Media ◽  
Rapid Development ◽  
Communication Media ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank ◽  
Marketing Effectiveness

The purpose of this study is to see the level of marketing effectiveness carried out by Bank BNI Syariah using social media Instagram. The rapid development of Instagram in Indonesia has made Bank Negara Indonesia Syariah actively use this social media as a forum for promotion on Instagram under the account name @ bni.syariah. So it is recorded that as of January 2019 the @ bni.syariah account has the most followers or followers of 37.8 thousand. Then followed by the account @banksyariahmandiri 36.4 thousand followers, @brisyariah 32.5 thousand followers, @ bank.muamalat 25.7 thousands followers, @bankbjbsyariah 8,095 followers, @bankmegasyariah 5,619 followers, @hababankaceh 5,399 followers, @bank_syariahbukopin 2,736 followers, and @ panindubaisyariah.bank 263 followers. Instagram is effectively used as a marketing medium for Islamic banks, especially for BNI Syariah, which is effectively used as a media for promotion and communication media with BNI Syariah customers. With the existence of Instagram as a marketing medium for Islamic banks, in this case BNI Syariah is very helpful in introducing Islamic bank products and helping to increase BNI Syariah revenue itself. Although, currently Instagram social media is only used as a promotional media or the first media for BNI Syariah to introduce Islamic banking products and is also used as a medium of communication with active BNI Syariah customers. So that any complaints or problems, especially related to service, customers can immediately submit complaints to BNI Syariah via Instagram, and problems can be resolved according to the customer's needs.

Determinants of Islamic Bank Profitability: Evidence from Indonesia

2020 ◽  
Vol 5 (1) ◽  
pp. 1-13
Author(s):  
Puji Sucia Sukmaningrum ◽  
Kashan Pirzada ◽  
Sylva Alif Rusmita ◽  
Fatin Fadhilah Hasib ◽  
Tika Widiastuti ◽  
...  
Keyword(s):  
Interest Rate ◽  
Quality Management ◽  
Banking Industry ◽  
External Factors ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Internal Factors ◽  
Bank Profitability ◽  
Islamic Bank

Objective – Islamic Banks have a distinct advantage that is not only conduct a commercial operation, but to also conduct social operations. Therefore, Islamic Banks plays an important role in developing the Indonesian economy. The aim of this study is to investigate the impact of internal and external factors that affect the profitability of Islamic Banks in Indonesia. Methodology/Technique – The methodology of this research is multiple regression. The object of this research is the Islamic banking industry in Indonesia. Internal factors include size, liquidity, asset quality, management, and efficiency ratio. External factors include interest rate and inflation. Return on Assets is used to measure profitability. The monthly data is collected from the financial reports of Islamic Banks between 2011 to 2016. Findings – The findings show that size, liquidity, assets quality, management ratio, interest rate and inflation lead to a greater Return on Assets (profitability) in Islamic Banks in Indonesia. Efficiency however does not have a significant effect on profitability of Islamic Banks in Indonesia. Novelty – Based on the results of this research, it can be concluded that the Islamic banking industry can use those variables to improve the profitability of Islamic banks in the future. In addition, there are two variables that affect the profitability of Islamic banking industry. For the Islamic banking industry should anticipate the movement of inflation and interest to improve the profitability of Islamic banks. Type of Paper: Empirical paper. Keywords: Islamic Banks; Profitability; Internal Factors; External Factors; Indonesia. Reference to this paper should be made as follows: Sukmaningrum, P.S; Pirzada, K; Rusmita, S.A; Hasib, F.F; Widiastuti, T; Hendratmi, A. 2020. Determinants of Islamic Bank Profitability: Evidence from Indonesia, J. Fin. Bank. Review, 5 (1): pp. 01 – 13 https://doi.org/10.35609/jfbr.2020.5.1(1) JEL Classification: G21, G24.

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