The Effect of Religiosity, Profit Los And Sharing on Consumer Trust and Intention to Financing in Islamic Bank

With a majority Muslim population, Indonesia has a good market share for Islamic banks. The existence of conventional banks becomes a competition to determine the strategy of Islamic bank managers. This study aimed to examine the effect of honesty and profit-sharing on trust mediation on consumer intentions. This study uses SPSS analysis and the Sobel test to see the role of mediation. Samples were taken as many as 384 respondents from the Muslim community. The analysis results obtained that religiosity significantly affects consumer trust and intentions. Profit and loss sharing significantly impacts confidence and does not affect consumer intentions. Trust can provide a significant mediating role. In terms of increasing the factors that influence consumer intentions, company managers must build consumer trust, the opportunity for a religious community to become a potential target market.

Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact

Value-based banks strive to build a self-sustaining banking model with inclusive and transparent governance that is sustainable and resilient to external disturbances. Initiatives for value-based intermediation in Islamic finance started in Malaysia. The growth in VBIBs is accompanied by claims about its relative resilience to crisis and efficiency compared to VBBs and conventional banks. However, little empirical evidence is available to support such claims. This study aims to analyze the resilience and efficiency of VBIBs compared to the VBBs and GSIBs. It highlights the role of value-based strategy in developing a sound and resilient Islamic banking system to overcome future crises and further strengthen the impacts of Islamic banks. The study used quantitative and content analysis research methods, with data collected from the annual reports of 10 VBIBs from 2017 to 2020. The empirical results show that VBIBs have better risk-adjusted capital levels and asset quality, enabling them to be more resilient during crises. They provide more satisfactory returns compared to the VBBs and GSIBs. However, VBBs have a better asset structure and growth rate, which contributes to the real economy. The overall findings suggest that adopting value-based strategies in Islamic banking improve banks’ sustainability, resilience, and social impacts by concentrating resources on value-based activities that provide economic resiliency and enhance inclusive and sustainable economic growth. The study fills gaps in the current Islamic finance literature concerning empirical studies on value-based Islamic banking. It also helps practitioners to understand the relative efficiency, resilience, and social impact of VBIBs.

ANALYSIS OF THE EFFECT OF ISLAMIC BANK INCOME AND INCOME CONVENTIONAL BANKS AGAINST BANK PROFITABILITY

Bank Syariah Indonesia has sharia contracts that can make it easier for customers to get consumptive financing such as financing in the purchase of cars/motorcycles, but many people do not know that Islamic banks have such consumptive financing products. Based on the results of research on the mechanism and application of consumptive financing on the Oto iB Hasanah BNI Syariah Banda Aceh product, this can be done in three stages, namely: First, the customer applies for consumptive financing for the Oto iB Hasanah BNI Syariah Banda Aceh product by completing the file, second, checking data or verifying data for completeness and the truth of the file, thirdly, a field survey with the 5C principle (Character, Capacity, Capital, Condition and Collateral). murabahah namely an agreement on profit, payment method, sale and purchase agreement and delivery of goods.

Capital Regulation and Risk-taking Behavior: Empirical Evidence for Islamic Banks

This paper investigates whether regulatory pressures have an impact on the relationship between change in capital and bank risk-taking. On the basis of a well developed theoretical background, capital regulation constitutes the core of prudential regulation within the banking sector. Several researches have investigated this relationship between capital and risk in conventional banks, and this subject has gained in interest since the last financial crisis. This study is one of the few studies that have attempted to provide empirical evidence on this issue for Islamic banks. We use data of Islamic banking sectors over the period 2010–2014. The results reveal that Islamic banks tend to behave differently at each level of capital adequacy. In addition, we provide some evidence that change in capital is positively related to the change in risk for highly capitalized Islamic banks.

Non-Muslim Customer Switching Behavior In Islamic Bank In Indonesia

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.

Does Corporate Governance and other Factors Influence Earnings Management? A Study on Indonesia’s Banking Sector

The issue of misreporting financial data and earnings management has become more prominent in recent years. Several studies have been conducted determining the influences of the mechanisms of corporate governance and earnings management in various countries. In this study, it was proven that the existence of a good corporate governance (GCG) mechanism did not suppress earnings management practices in the banking sector industry in Indonesia. However, another factor, dividend policy, can prove effective in suppressing earnings management. The measurement of earnings management in this study was carried out using the Modified Jones model with a population of 43 conventional banks from which research data were taken using a purposive sampling technique sourced from the Indonesia Stock Exchange (IDX). The analysis was carried out using multiple linear regression. The implication of this research is that the implementation of good corporate governance by an entity must be considered given that earnings management practices in Indonesia are still relatively high.

Millennial customer response on social-media marketing effort, brand image, and brand awareness of a conventional bank in Indonesia

Due to the fierce competition in banking for raising funds, banks have been obliged to develop marketing strategies to attract new consumers, particularly millennial. The marketing communication strategy that is often applied by banks is the loyalty program that is informed through social media. One of the banks in Indonesia with a loyalty program is the Bank Tabungan Negara (Bank BTN) or State Savings Bank whose a more prominent brand image of credit products than savings. This study investigated the effect of Social-Media Marketing Efforts, Brand Awareness, and Brand Image on Millennial Customer Response. This study employed a qualitative method by distributing questionnaires to 400 respondents. The results revealed that Millennial Customer Response was influenced by Social-Media Marketing Effort, Brand Awareness, and Brand Image. To conclude, Social-Media Marketing Efforts, Brand Image, and Brand Awareness of Conventional Banks in Indonesia affect Millennial Customer Response.

Analisis Faktor Spesifik Bank Terhadap Non Performing Loan Pada Bank Umum Konvensional Yang Terdaftar Di Bursa Efek Indonesia

The purpose of this research is to analyze the effect of bank specific factors on non-performing loan on public conventional banks. The dependent variable studied was the non-performing loan and independent variables examined were capital adequacy ratio, bank size, loan to deposit ratio, net interest margin, return on equity, operating expenses to operating income, and earning per share. The secondary data obtained from the annual reports submitted in the IDX. Sample consist of 32 public conventional banks listed in IDX in the period of 2012-2017. The result of this study indicate that bank size and net interest margin has a positive and significant impact on non-performing loan. While return on equity showed a negative and significant impact on non-performing loan. The result of this study also showed that capital adequacy ratio, loan to deposit ratio, operating expenses to operating income and earning per share did not have any significant impact on non-performing loan.

Exploring the role of social proof of credibility and usability for internet banking adoption through media networks

Present study has offered two theoretical models which may helpful to understand the importance of social proof during internet banking (IB) adoption. The existing technology adoption model such as TAM has ignored the importance of social proof of credibility such as risk, security, and privacy. People are actively involved to take recommendations from close sources, experts, customers, and crowd opinion using social media platforms (SMPs). The purpose to gather information is to save from risk, security, and privacy issues especially when customers must share their personal and financial information during IB. It has found that conventional banks have positive word of mouth, recommendations, and reviews therefore the number of IB customers, profitability, and growth is high compared to Islamic banks. Conversely, SMPs have more negative word of mouth and stories which creates social proof regarding the uncertainty and risk in IB adoption. Findings highlights that people have social trust, confidence, and believe in their close sources and conventional banks.

Mapping the Trend of Islamic Economic Studies Indexed in Sinta Website: A Bibliometric Analysis

Research on Islamic economics experienced rapid development in recent years along with the development of Islamic economics as a branch of science throughout the world, especially in Muslim countries. This paper aims at mapping and observing the trend of Islamic economic studies listed on SINTA, the official Indonesian indexing website. The sampling data for this study is 114 published papers obtained from the website. The data are analyzed using quantitative descriptive with bibliometric analysis method. This study found that most papers are published by “Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah”, owned by Syarif Hidayatullah State Islamic University. The qualitative approach is most used by research samples in this study with 74 papers (64.91%), while quantitative is only used by 40 papers (35.08%). It also found that Islamic economic research in Indonesia is dominated by Islamic bank topics with several general bank keywords, such as efficiency, profitability, liquidity, and Non-Performing Financing (NPF). This study suggested that further researchers conduct more studies on Islamic or Sharia values implemented within Islamic banks since it is the main difference between Islamic and conventional banks. Further studies can also observe broader problems like poverty and how the Islamic economy has overcome this issue==================================================================================================== ABSTRAK – Pemetaan Tren Kajian Ekonomi Islam pada Pengindeks SINTA: Suatu Analisis Bibliometrik. Penelitian di bidang ekonomi Islam mengalami perkembangan yang cukup signifikan beberapa tahun terakhir bersamaan dengan perkembangan ekonomi Islam sebagai salah satu cabang ilmu pengetahuan, terutama di negara-negara dengan mayoritas penduduknya adalah Muslim. Artikel ini bertujuan untuk melakukan pemetaan dan melihat tren publikasi pada artikel penelitian ekonomi Islam yang terindeks SINTA, website pengideks resmi Indonesia. Sebanyak 114 artikel diperoleh dari SINTA untuk dijadikan sebagai sampel penelitian. Metode yang digunakan adalah deskriptif kuantitatif dengan analisis bibliometrik. Penelitian ini menemukan bahwa mayoritas paper dipublikasikan oleh “Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah” dari UIN Syarif Hidayatullah Jakarta. Pendekatan kualitatif digunakan oleh 74 sampel artikel (64.91%), sementara pendekatan kuantitatif digunakan oleh 40 artikel (35.08%). Studi ini juga menemukan bahwa artikel kajian ekonomi Islam di Indonesia masih didominasi oleh penelitian terkait bank syariah dengan beberapa kata kunci, diantaranya: efisiensi, profitabilitas, likuiditas, dan Non-Performing Financing (NPF). Penelitian ini merekomendasikan kepada para peneliti di bidang ekonomi Islam untuk melakukan kajian lebih mendalam pada nilai-nilai Syariah yang diimplementasikan di bank Syariah karena hal tersebut merupakan perbedaan mendasar antara bank Syariah dan bank konvensional. Isu lebih luas terkait kemiskinan dan bagaimana ekonomi Islam mengatasinya juga dapat diteliti secara lebih komprehensif dalam kerangka penelitian ekonomi Islam.