DESIGN OF SALES PERFORMANCE DASHBOARD BASED ON SALES FUNNEL & SALES FORCE AUTOMATION THEORIES: A CASE OF AN INDONESIAN ISLAMIC BANK

One of the bank management concerns related to sales performance is ensuring sales people perform the sales process correctly. Unfortunately, most sales people have problems in the sales process, which causes their low performance. Islamic banks in Indonesia also experienced this situation, so a strategy needs to overcome this problem. For instance, using surveillance tools such as Sales Force Automation (SFA) with sales funnel theory. An SFA tool is a sales system connected to computers and internet networks. It monitors sales processes and results, manages contacts, forecasts sales, and analyzes sales performance daily and monthly. Additionally, it helps sales forces to measure the ability to achieve targets, plan sales strategies and customer approaches, and increase work motivation. Also, raise awareness of developing skills, and provide up-to-date information to supervisors about sales force performance to determine the proper training. Therefore, the use of SFA tools is expected to increase the productivity of sales people in optimizing the fulfillment of deposit targets in Islamic banking. This paper reports the SFA design in the form of a dashboard model with a visual sales to funnel that shows the function of the salesperson in conducting the sales process ends with the results.

E-ZAKAT: AN APPROACH FOR ZAKAT MANAGEMENT TO ERADICATE POVERTY

This paper has shown an online-based zakat management system named E-ZAKAT. Zakat is one of the main foundational goals of the world’s second-largest religion, Islam. So, it has indisputable importance for a country as well as the world economy and poverty eradication. During the COVID-19 pandemic, people have become habituated with the online system due to unavoidable situations, such as education and commodity market has now turned into online systems. However, an online base zakat management system for both donors and seekers has not prevailed widely. Here in this proposed system, the donor can calculate, donate their zakat, and the seeker can apply to receive it. Instead of providing cash, business or agricultural help is planned to ensure the economic stability of a low-income family. For this purpose, the expectant can claim support for green farming, agricultural equipment, or money to start a small business after ensuring the required verification and qualification steps. The proposed dynamic web application E-ZAKAT will provide an easier and hassle-free system for zakat donors and seekers with an attractive design. As a result, proper utilization of our system could provide a positive impact to change our society as well as our world.

ISLAMIC BANKING SYSTEM IN THE SULTANATE OF OMAN FROM THE PERSPECTIVE OF BANKING OFFICERS EMPLOYEES AND CUSTOMERS

This research aims to determine the viability for the operation of Islamic banks within the Omani banking system. By looking into various opportunities for Islamic banking in Oman and given the unique rules on transactions (fiqh muamalat) of Islamic banking based on the Shariah precepts or the so-called Islamic law. As the establishment of small and medium enterprises (SMEs) is rapidly growing in Oman, many SMEs can draw support from Islamic banks. The study used a mixed method approach to answer the research questions. Do the participants patronize Islamic banking over conventional banking?. The study compared both conventional and Islamic Banking. The population of the study represented bank officers, bank employees and customers. The sample of the study (n=100) participated in the survey. Another selected sample participated in interviews. Findings revealed different views over Islamic banking. Islamic banking is careful to provide products and services. Also, they are found to be capable of offering products and processes that answers the need of certain aspects with a risk management framework that is distinct from what normal banking provides. The study findings support the need for Islamic banking systems as it would be easier to spread Islamic banking and financing.

CONSTRUCTION OF AN ISLAMIC INDEX USING THE MEDIAN CRITERION OF QUANTITATIVE FILTERS: APPLICATION TO THE AFRICAN STOCK EXCHANGE

Many techniques, combining qualitative and quantitative filters, have been proposed in the literature to construct an Islamic index on financial stock exchange. These are often based on fixed thresholds to define quantitative filters. However, as companies do not have the same characteristics from one sector to another, it is necessary to have heterogeneous thresholds for filtering purposes. Our contribution, here, is to propose a methodology which integrates this fact by using the median (statistic) criterion which is much more robust than the average criterion (vis-à-vis the presence of extreme values) but also the median statistic is consistent with the Wassatiya principle (50% of the way) than the 33% fraction used by many studies.

IMPACT OF THE COVID-19 PANDEMIC ON ISLAMIC BANK INDICES OF THE GCC COUNTRIES

The present study explores the impact of the COVID-19 pandemic on Islamic bank indices in GCC countries banking sector. The research aims to know the ability of Islamic Bank indices to face the COVID-19 crisis and examine whether Islamic bank indices can respond to the volatility in the stock exchanges. The study uses data of stock exchanges and Dow Jones Islamic Market Index in GCC countries banking sector to relate the data before and during the COVID-19 crisis. It is found that Islamic banks have ability to respond the financial and economic crisis. Also, Islamic banks are able to provide their valuable services continuously and perform their financial activities during and after the crisis competently. The results also indicate that Islamic Bank Indices in GCC countries have performed better during 2019 with significant closing prices compared to 2020. As during 2020 fifteen banks recorded normal decreasing in its indices and six Islamic banks achieved growth in its indices. In Q1, Q2 of 2021 the Islamic banks achieved positive growth in its indices price. This specifies that Islamic Banks have managed the financial and economic crisis in an efficient manner.

THE EFFECT OF NON-PERFORMING FINANCING AND THIRD PARTY FUNDS ON THE PROFITABILITY THROUGH PS/RS AND PLS FINANCING

This research is motivated by the phenomenon of increasing PS/RS and PLS financing and profitability at Islamic Commercial Banks (BUS) in Indonesia during the 2015-2019 period, and experiencing a decline from 2019 to 2020. PS/RS and PLS financing can use mudharabah and musharakah contract schemes. Mudharabah financing is based on profit sharing, while Musharaka is based on profit-loss sharing. This study aims to obtain empirical evidence regarding the effect of non-performing financing and third-party funds on profitability through PS/RS and PLS financing. The population used in this study were all Islamic Commercial Banks in Indonesia in the 2015-2020 period. The data analysis technique used is Partial Least Square with SmartPLS software version 3. The results of the study found a direct effect of non-performing financing on profitability. The results of the study did not find a direct effect of non-performing financing on PS/RS and PLS financing. In addition, third party funds do not have a direct effect on profit-sharing and profitability-based financing. The results also did not find an indirect effect of non-performing financing and third-party funds on profitability.

ISLAMIC FINANCE IN ETHIOPIA: CURRENT STATUS, PROSPECTS AND CHALLENGES

Ethiopia is a country found in the horn of Africa and notable in the Muslim world as the destination of the two migration of the companions of Prophet Muhammad (PBUH). Ethiopia has a Muslim population expected to be around 50 million. Unfortunately, with this significant Muslim population, it accommodates Islamic finance in its conventional financial system lately. This study aims to investigate the current status, prospects, and challenges of Islamic finance in Ethiopia. For these reasons, different secondary data were collected and analyzed. The result of the study indicated that Islamic finance in Ethiopia is representing by three financial institutions such as Islamic banks, Islamic Insurance and Islamic microfinance. Islamic banking is providing through the Interest-free banking window and fully-fledged forms of interest-free banking. The interest-free banking window system is adopted by conventional banks, whereas Full-fledged Islamic Banks providing services using their own separate Sharia-compliant financial system. The result also indicated that high public demand, adequate capital for the establishment, availability of substantial customers, easy deposit mobilization and profitability are the foremost opportunities for Islamic finance in Ethiopia. Whereas, negative perception about Islamic finance, legal framework challenges such as restriction of investment and double taxation, and lack of skilled human resources are the main potential hindrances for the sector.

MURABAHA-RELATED CREDIT RISK AND FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN AFRICA

The uniqueness of Murabaha (cost-plus) financing has suggested another theoretical relationship between credit risk and the financial performance of banks. While studies from Asian countries supported this assertion, empirical analyses from Africa reported conventional findings on the credit risk effect on performance. These conflicting reports were partly due to the exclusion of factors specific to Murabaha financing in past studies in Africa. This study was conducted to assess the effect of credit risk on the financial performance of Islamic banks in Africa. Data were collected from annual reports of the selected Islamic banks for nine years from 2012 to 2020. A fixed-effect regression model was estimated after conducting the preliminary tests of Breusch Pagan Lagrange Multiplier (BP/LM) and Hausman. The study found that non-performing Murabaha (0.0220) and provision for impairment of Murabaha financing (0.3506) have positive effects on return on assets. The results were found to be significant at a 5% level of significance. Based on this finding, it was concluded that credit risk exposure that arises from Murabaha (transactions) financing tends to improve the financial performance of the banks. Therefore, the study recommends that Islamic banks increase their financing of Murabaha transactions to boost their profitability and compensate for high credit risk exposure.

PERFORMANCE OF INVESTMENT MANAGEMENT: A STUDY ON SOCIAL ISLAMI BANK LIMITED (SIBL)

This study attempts to understand the level of efficiency of investment management of social Islami bank limited (SIBL). In this regards, different aspects (i.e., amount, ratio, profit and growth) of deposit, investment, investment modes and procedures are scrutinized thoroughly. To conduct the study, secondary data sources have been primarily used. Some information was also collected from officials over the phone. The study was based on five consecutive years i.e., 2015 to 2019.The major findings are that the ratio of investment deposit also remains as high as 90%. The bank invests more in Murabaha, Bai-Muazzal, HPSM and Quard. The ratio of classified investment to total investment increased 8.20% till 2017 and decrease to 6.63% up to 2019 whereas the ratio of unclassified investment decrease to 89.09% till 2017 and increase to 91.71% up to 2019. There has an increase of sub-standard and doubtful investments till 2017 and a decrease up to 2019. But in case of bad or loss investment, an upward trend has been observed till 2018 and had a negligible decrease in 2019. The last part of the analysis shows that the overall profit growth of investment fluctuated over years but remains positive i.e., 11.39%. In conclusion, the bank is moderately efficient in investment management.

PERFORMANCE COMPARISON OF ISLAMIC BANKS AND CONVENTIONAL BANKS IN PAKISTAN

The objective of this paper is to compare and analyze the performance of Islamic Banks and Conventional Banks operating in Pakistan during the 5 year period of 2015-2019. This study utilizes the CAMEL approach to assess and compare the performance of Islamic Banks and Conventional Banks in Pakistan using a sample of banks. For the purpose of this study, we have used a sample of 4 Conventional banks and 4 Islamic Banks that are operating in Pakistan. All the relevant information for the purpose of comparison for this study was collected from the annual reports of these sample banks which were available on the respective bank’s website. The findings of this study indicate that in Pakistan, Islamic banks have performed better in terms of asset quality and earnings than the conventional banks whereas the conventional banks had a better performance in terms of liquidity, management efficiency and capital during the five-year period of consideration. The findings of the analysis also showed that Islamic banks in Pakistan have shown significant growth over the 5 year period 2015-2019.