ISLAMIC FINANCIAL DEVELOPMENT IMPACT ON ENERGY INTENSITY: EVIDENCE FROM ISLAMIC BANKS

The relationship between financial development and energy intensity is yet firmly established as the literature is emerging, and the few empirical studies that have been done provide conflicting results. Whereas some conclude a U-shaped relationship between financial development and energy intensity, others show a linear relationship between the two variables. This study investigates the relationship between financial development and energy intensity by focusing on the role of Islamic financial development. The study covers 30 countries where Islamic banks are present. Using the fixed-effects panel model, the empirical results suggest that Islamic banking development significantly increases energy intensity in the sample countries. We also identify other important factors that increase energy intensity. These include carbon emissions, renewable energy use and energy imports. The findings point to the importance of designing policies to incentivize Islamic banks and Shari'ah-compliant investors to finance clean energy technologies as a potent tool for reducing energy intensity, achieving sustainable development, and greening Islamic finance.

GOOD CORPORATE GOVERNANCE (GCG) PRINCIPLE IN SHARIA BANKING: AN ISLAMIC LAW PERSPECTIVE

The implementation of Islamic economy in Indonesia is due to the fact that Islam has a comprehensive and universal teaching in all human life aspects, including economy. One encouraging Islamic banking development in Indonesia is indicated by the operation of banks accommodating the Sharia principles. The rapid development of Sharia banking requires an immediate implementation of Good Corporate Governance (GCG) System to provide a maximum protection for the stakeholders, especially customers. The implementation of GCG is expected to help Sharia banking minimize the poor financing quality, increase the bank assessment accuracy, infrastructure, and business decision making quality as well as become the early detection to high risk business areas, products, and services. The implementation of GCG system is greatly important since Sharia banking is the intermediary institution requiring the public or stakeholders’ trust.

ISLAMIC BANKING DEVELOPMENT AND FINANCIAL INCLUSION IN OIC MEMBER COUNTRIES: THE MODERATING ROLE OF INSTITUTIONS

This study argues that the effect of Islamic banking development on financial inclusion is enhanced when there exist better quality institutions. A cross section dependency test, cointegration test, causality test, and system GMM (generalized method of moments) are applied to achieve this objective. Employing panel data from 30 Organisation of Islamic Cooperation (OIC) member countries over the period 2013-2018, the analysis suggests that Islamic banking promotes financial inclusion. Furthermore, it documents evidence which suggests negative and significant coefficients of the interaction between Islamic banking development and institutional quality. This means that Islamic banking development works well in promoting financial inclusion in countries with low institutional quality.

Banking and Economic Growth: Comparison between Islamic and Conventional Banking in Malaysia

This study investigates the contribution of conventional banking and Islamic banking to economic growth in Malaysia. Return on assets, return on equity representing the profitability, total deposit, representing bank development, and several indicators such as total government expenditure, trade openness, and gross fixed capital formation were independent variables. In contrast, the dependent variable was GDP per capita. The study utilised secondary data collected from the Fitch Connect database and Datastream database. This study used a sample of 10 Islamic banking and 10 Conventional banking. The study found that the Islamic banking system variable can influence Malaysia's economic growth. ROA and Ltdep are found significant and have positive effect to economic growth, but ROE has adverse effects. On the other hand, the results show that ROA in Conventional bank does not have a relationship with economic growth. However, other banking indicators such as ROE and total deposit are significant to economic growth. Based on the ROE results, ROE Islamic bank contributes more to economic growth than Conventional bank because the percentage that contributes to the decreases of economic growth for Islamic banks is lesser than Conventional bank. The results also showed that Islamic banking provides an efficient channel for productive resources and monitors the use of the funds by the participation of business ventures, leading to bank profitability and then economic growth. This study also stressed on total deposit indicator as a proxy to bank development. This study found that total deposit for the both banking system is significant to economic growth. However, the contribution of banking development in conventional banking is much better than by Islamic banking. However, the gap of differences is too small, which shows that Islamic deposits can cope with conventional deposits.

Factors influencing Palestinian small and medium enterprises intention to adopt mobile banking

Purpose This paper aims to examine the determinant factors that influence the adoption of mobile banking by small and medium enterprises (SMEs) in Palestine. The aim of this paper has supported with the objectives to identify the role of mobile banking practices in enhancing sustainable growth and development of Palestine SMEs; determining the factors that influencing the SMEs as a service and products providers’ intention to adopt mobile banking and proposing a conceptual model for adoption mobile banking development by SMEs sectors in Palestine Design/methodology/approach Hypotheses were developed guided by the technology organisation-environment (TOE) model. The primary data was collected from 408 SMEs in Palestine using questionnaires and 8 interviews. Findings The empirical results are based on partial least squares analysis and statistical package for the social sciences. The findings presented in this paper reveal that SMEs factors, enabling environment and business model are the main determinant factors affecting the intention to adopt mobile banking by the SMEs sector in Palestine. Practical implications The main contribution of this study is the concise identification of the obstacles and facilitators to SMEs’ mobile banking, especially in developing countries. A suggestion for further study was made. The findings could be useful to policymakers, government institutions and agencies especially in Palestine and other development partners in designing and directing their policy intervention. Originality/value This study contributes significantly to the theoretical understanding of mobile banking through the development of a mobile banking framework for the SMEs’ sector in Palestine. A major contribution of this study is to the existing knowledge and literature in mobile banking by developing a TOE framework for providers (supply-side) factors in general and in particular in Palestine to fill the gaps in past studies.

PELATIHAN PENGELOLAAN ADMINISTRASI PERKANTORAN PADA DIVISI CORPORATE SECRETARY BANK PAPUA

Pengelolaan korespondensi dan kearsipan merupakan tugas yang mendukung kelancaran tugas administrasi perkantoran. Oleh karena itu kemampuan atau keahlian dalam pengelolaan korespondensi dan kearsipan merupakan hal yang sangat penting untuk karyawan, maka pelatihan ini dilaksanakan untuk meningkatkan kemampuan karyawan di Bank Papua khususnya pada bagian Coorporate Secretary. Tujuan dari pelatihan program pengabdian kepada masyarakat ini memberikan pemahaman mengenai cara pemberian nomor surat dan penyimpanan dokumen perusahaan. Metode yang dilaksanakan dalam pengabdian kepada masyarakat yaitu tahap pertama adalah tahap menerima surat permintaan permohonan sebagai fasilitator dari Banking Development Finance Center (BDFC) sebagai mitra pengabdian kepada masyarakat; tahap kedua yaitu tahap penyusunan atau membuat materi pelatihan; tahap ketiga adalah tahap pemberian materi dan penjelasan materi; tahap keempat adalah tahap evaluasi kegiatan yang terdiri dari sesi tanya jawab atau diskusi, dan tugas latihan/praktik, serta menyebarkan kuesioner sebelum pelatihan dilaksanakan dan sesudah pelatihan dilaksanakan. Kesimpulan dari kegiatan pengabdian kepada masyarakat adalah 1) peserta pelatihan memiliki pengetahuan dan kemampuan dalam mengelola korespondensi dan kearsipan dengan baik dan benar; 2) manfaat dari pelatihan inI sangat dirasakan oleh peserta dalam menunjang pekerjaan administrasi kantor

MANAGEMENT SYSTEM OF BANKING BUSINESS DEVELOPMENT

The current development of the economy and the state of the banking system provokes significant changes in the functioning of banks, especially in conditions of economic and political instability. Rapid response to external and internal factors that affect the development of the banking business is the main task of the bank’s management entity. That is why the issue of management system of banking business development becomes especially significant, which determines the relevance of the chosen topic and the feasibility of the carried out research for the development of the issue. The article examines the statutes of existing Ukrainian banks and determines that the management system of banking business development is formed by three higher governing bodies of the bank that is the general meeting of the bank, the supervisory board and the bank’s board. The purpose of the article is to determine the organizational system of the bank, which is part of the overall management system of the banking business. In the process of analysis of the methods of theoretical and empirical research (system method, method of comparison, method of generalization, scientific abstraction, tabular method) and others are applied. The project of standard powers of exclusive competence of the general meeting of bank participants, the project of standard functions of exclusive competence of the bank’s supervisory board and the project of standard competences of the board for improving the internal management system of banking business development are proposed in the article. These three high governing bodies provide full management of the bank’s development. They determine the bank’s development strategy and implement it as well as control the financial condition of the bank and its compliance with current legislation of Ukraine and certain areas of development of the bank, share the full range of strategic, tactical and operational functions for managing banking development, ensuring the integrity of the management system of the banking business in general and its development in particular.

Exploring determinants of financial system and environmental quality in high-income developed countries of the world: the demonstration of robust penal data estimation techniques

The financial system development has got considerable attention due to its association with the environment of the country. To address the apprehension of the researchers about the effect of the determinants of the financial system on the environmental quality of high-income developed countries, we analyze the data of twenty developed countries with sound and strong financial systems for the period 2001 to 2018. We consider both banking development and stock market development as the main key determinants of the financial system. We employ numerous modern-day penal data estimation techniques, namely Dynamic Penal GMM in both linear and non-linear form, Common Correlated Effect Mean Group (CCEMG), and Dynamic Fixed Effect for capturing the issues of heterogeneity, endogeneity, and cross-sectional dependence. Our results show that banking development substantiates the environmental quality in high-income developed countries. The positive gesture of the banking development on environmental quality could be the reason for the established environmentally friendly policies in the developed part of the world. Hence, we conclude that banking development in high-income developed countries significantly reduces the emissions of dangerous gases, which resultantly enhances the environmental quality. The study reveals an insignificant and tenuous impact of the market development on the environmental quality that might be due to the adoption of cleaner technologies by firms in the developed world that are environmentally friendly. The results of our long-term estimations also predict the significant effect of banking development and an insignificant effect of the market development on environmental quality. In addition, our results also demonstrate an inverted U-shaped relationship of the determinants of the financial system and environmental quality. More institutional and legal initiatives must be made for a more robust banking and stock market development framework by the policy makers with a view to substantiating the quality of the environment to a more sustainable level in the developed world.

The Impact of Macroeconomic, Social and Governance Factors on the Sustainability and Well-Being of the Economic Environment and the Robustness of the Banking System

The paper highlights the connection between the European Union banking system and a set of representative factors—macroeconomic, social, and governance factors—selected from the perspective of sustainability and well-being. The analysis is carried out as a panel regression on EU member countries with annual data for 2005–2018, and it explores the impact of the selected factors on the robustness of the banking systems in the European Union countries. The analyzed variables to reflect the robustness of the banking system were the domestic credit to the private sector and the nonperforming loans (NPL) rate. Those indicators are of high relevance and concern within the current pandemic context. The results show that the banking development degree influences the increase of private-sector lending and the decrease of the NPL rate. Social and governance factors impact differently the level of private sector and NPL rate. All macroeconomic indicators used to influence the level of private-sector lending. The research reflects the fact that to promote and adopt a culture of sustainability and to ensure well-being, a close collaboration between all sectors of an economy is needed, together with a strong policy interconnection and harmonization between micro and macro.