Journal articles on the topic 'Islamic banking development'
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1
Ariff, Mohamed. "ISLAMIC BANKING." Asian-Pacific Economic Literature 2, no. 2 (September 1988): 48–64. http://dx.doi.org/10.1111/j.1467-8411.1988.tb00200.x.
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Tahir, M. Akhtar. "Islamic Banking and Financial Development." Unisia 10, no. 2 (April 15, 1988): 3–15. http://dx.doi.org/10.20885/unisia.vol10.iss2.art1.
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Akhtar, Muhammad Hanif, and Naariah Hanif. "Does Islamic Banking Augment Banking Sector Development in Pakistan?" COMSATS Journal of Islamic Finance 4, no. 1 (June 28, 2019): 1–9. http://dx.doi.org/10.26652/cjif.4201911.
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Cobham, David. "Finance for development and islamic banking." Intereconomics 27, no. 5 (September 1992): 241–44. http://dx.doi.org/10.1007/bf02928053.
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Lodhi, Suleman Aziz, and Rukhsana Kalim. "Strategic Directions for Developing an Islamic Banking System." Pakistan Development Review 44, no. 4II (December 1, 2005): 1003–20. http://dx.doi.org/10.30541/v44i4iipp.1003-1020.
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Islamic banking generally referred to as interest free banking has been gaining popularity in the recent past. The main pillar of Islamic finance is prohibition of interest. Unlike conventional banking where interest is an integral part of the banking system, Islamic banking avoids interest in all bank transactions [Samad and Hassan (1999)]. The banking system in Pakistan is undergoing a transition from conventional model of banking to the new concept of Islamic banking, based on principles of Islamic economics. The new system should not only eliminate interestbased transactions but also introduce the concept of “Zakah” a contribution to the poor [Molla, et al. (1988)]. The prohibition of Riba is based on the arguments of social justice and equality.
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Masiukiewicz, Piotr. "Multicultural issues in the development of Islamic banking." Journal of Intercultural Management 6, no. 3 (September 1, 2015): 167–76. http://dx.doi.org/10.2478/joim-2014-0027.
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Abstract Islamic banking is highly specific and is based on the Sharia law. This banking offers new products. which comply with the prohibitions of riba, maysir, gharar. Dynamic development of this banking in the word is the consequence of its opening to culturally diverse clients, and not only Muslims. Numerous researches demonstrate that many not-Muslim clients use the financial products which are offered in Islamic banks and in the “Islamic windows” in conventional banks. The Islamic banking offer is increasingly more often dedicated to the clients beyond the Muslim community, and at the same time the products dedicated to this community are offered by traditional banks. In this way the Islamic banking offer diffuses to other cultures.
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Ali, Muhammad Aqib. "Growth and Development of Islamic Banking: A Global Review." Review of Applied Management and Social Sciences 5, no. 2 (June 30, 2022): 263–89. http://dx.doi.org/10.47067/ramss.v5i2.235.
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The paper appraises the growth and development of Islamic banking sector internationally in various parts of the world covering several countries from across the globe, including Saudi Arabia, Iran, Bahrain, Kuwait, UAE, Qatar, Jordan, Egypt, Oman, Turkey, Malaysia, Pakistan, Bangladesh, Indonesia, Singapore, Philippines, Sudan, Nigeria, Algeria, and Kenya. Islamic banking domains in the western and European regions were also part of the discussion involving the following countries: Australia, UK, Luxembourg, Germany, Italy, France, USA and Canada. The paper employs qualitative research approach in evaluating the progress of Islamic banking initiative throughout various countries of the globe by fetching data from the central banking as well as from the financial regulatory bodies of different countries. Islamic banking initiative considerably developed in the Middle East region, spreading to global scale from this region to other Asian and European countries. The growth of Islamic banking setup in non-Muslims countries reflects the power and potential of Islamic banking as a global financial force. The paper provides key facts along with vital information offering a comprehensive review of global growth of Islamic banking initiative in major regions of the world including Middle East, Asia, Africa, Europe, Australia and North America.
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FITHRIAH, NURHANI. "INNOVATION OF ISLAMIC BANKING INDUSTRY AS AN ALTERNATIVE ISLAMIC ECONOMIC DEVELOPMENT IN INDONESIA." Jurnal Jurisprudence 7, no. 2 (February 3, 2018): 132–41. http://dx.doi.org/10.23917/jurisprudence.v7i2.4838.
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One of potential exploration and manifestation of the community's contribution to the national economy, is the development of an economic system based on the value of Islamic (Sharia) by lifting its principles into the National Legal System. Shariah principles based on the values of fairness, expediency, balance, and universality (rahmatan lil 'alamin). Those values are applied in banking regulation that is based on the so-called Sharia Islamic Banking. Principles of Islamic Banking is part of Islamic teachings related to the economy. In addition, to provide assurance to the people who still doubt shariah Islamic Banking operations during this time also set of business activities that do not conflict with Sharia Principles include business activities that do not contain elements of riba, maisir gharar, haram, and zalim. A separate regulation for Islamic Banking is an urgent thing to do, to ensure compliance with Shariah principles, the principles of the Bank for Islamic Bank, and no less important is expected to mobilize funds from other countries that requires the regulation of the Islamic Bank. Problems faced, how the strategy and the constraints faced in Islamic Banking Industry Product Innovation in developing the economy in Indonesia by Islamic Banking Act. This study aims to look for and find in the practice of the ways and forms of Islamic banking product innovation, as well as the constraints that it faces.This research, analytical, descriptive and normative juridical approach, and aims to provide a complete picture of the facts and the systematic application of Sharing in Islamic banks. Furthermore, the data were analyzed through statutory provisions in force, which among one another should not be contradictory, pay attention to the hierarchy with the aim to achieve legal certainty, by searching and digging law who live in the community, whether it is written or unwritten (Islamic law).The results showed that the strategy which remove products of Islamic banking industry innovation, improve human resources SDI), and marketing of products strategically. Constraints faced in Islamic Banking Industry Product Innovation in developing the economy in Indonesia, it is very difficult to do because fixated on Islamic principles. Suggestions put forward, should disseminate innovative products to the public and the effectiveness of supervision of Islamic banks (Internal & ekstenal).
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Miani, Stefano, and Demeh Daradkah. "The Islamic Banking Industry in Jordan." Transition Studies Review 16, no. 3 (August 27, 2009): 635–54. http://dx.doi.org/10.1007/s11300-009-0107-9.
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Kunhibava, Sherin. "Islamic Banking in Malaysia†." International Journal of Legal Information 40, no. 1-2 (2012): 191–201. http://dx.doi.org/10.1017/s0731126500006478.
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AbstractIslamic banking is the conduct of banking according to Shariah or Islamic law. Statistically Islamic banking has had phenomenal growth, according to the Asian Banker Research Group, the world's 100 largest Islamic banks have set an annual asset growth rate of 26.7% and the global Islamic finance industry is experiencing an average growth of 15-20% annually1. Recently the Prime Minister of Malaysia commented that Malaysia has been maintaining its leadership in Islamic banking and finance for over three decades2. As an International leader in Islamic banking, it would be interesting to explore the development of Islamic banking in Malaysia. This will be the objective of this paper. This paper will focus on the historical development of Islamic banking in Malaysia, from the creation of the Haj Pilgrim's Fund Board in the 1960s to the current Islamic banking scene of 17 local Islamic banks and five International Islamic banks in operation. This paper will also explore the unique regulatory and governance framework of Islamic banking in Malaysia, by touching on the Islamic banking Act 1983, the Central Bank of Malaysia Act 2009, the Banking and Financial Institutions Act 1989 and the Shariah Governance Framework introduced in 2011 by the Central Bank of Malaysia. This paper will also briefly introduce how Islamic banking works.
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Pratiwi, Ari. "Islamic banking contribution in sustainable socioeconomic development in Indonesia." Humanomics 32, no. 2 (May 9, 2016): 98–120. http://dx.doi.org/10.1108/h-12-2015-0085.
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Purpose As a prominent actor in terms of achieving sustainable socioeconomic development, especially in rural areas, Islamic banks are urged to pursue their main objective. It is required to set the objective accordingly from time-to-time to continuously make a positive contribution to the sustainable socioeconomic development. Hence, the integration of the external factors such as government’s economic target (macro) into Islamic banking’s objectives (micro) is needed. Design/methodology/approach This research attempts to identify factors that might prevent the sustainable economic development activities within the micro–macro circular causal model established by Tawhidi String Relation (TSR) methodology. Findings The research clearly found that the existing Islamic banking’s business and directions had an uncorrelated connection with Indonesia’s economic objective. Nevertheless, the Islamic banking’s Musharakah and Mudharabah contract for Usaha Mikro Kecil Menengah [(UMKM) (Micro, Small Medium Enterprises)] was showing the positive correlation to their financial performance indicator. Hence, Islamic banking is strongly suggested to be more focused on these two types of partnership financing contract to UMKM. Furthermore, its value and volume is needed to be expanded to build Indonesia’s sustainable socioeconomic foundation. Then the positive gross domestic product (GDP) growth will be achieved. Originality/value The existing research covering the sustainability index is mainly only based on the macro perspective, while in this research, the integration between the micro and macro perspectives between government objectives and Islamic banking objectives is needed. This interaction and integration between the two are in line with the concept of the TSR methodology.
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Ezeh, Precious Chikezie, and Anayo D. Nkamnebe. "Islamic bank selection criteria in Nigeria: a model development." Journal of Islamic Marketing 11, no. 6 (November 21, 2019): 1837–49. http://dx.doi.org/10.1108/jima-06-2019-0123.
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Purpose The purpose of this study is to develop a model for the study of Islamic bank choice and to test the significant importance of the constructs that influence bank customers to choose Islamic bank in a pluralistic-secular nation. Design/methodology/approach Total of 348 conventional and Islamic bank customers were sampled. Five-point Likert-type question containing 27 bank selection items was used in collecting primary data. Cronbach’s alpha, composite reliability and average variance extracted are used to test the reliability and validity of the instrument. Also various descriptive statistics, exploratory factor analysis and one sample T-test are equally used in analyzing the work. Findings Exploratory factor analysis identified four factors. They are Islamic ethics, convenience, Islamic bank services awareness and physical evidence. Furthermore, the factors that show significant importance in the choice of Islamic banking are Islamic ethics and Islamic bank services awareness. The result equally shows that people are aware of Islamic banking. Practical implications This study provides insight on the factors that influence the selection of Islamic banking, an innovative banking concept. This study has obvious management and theory implications. Also, the study will assist the bank managers in developing effective marketing strategy to increase the market share. Originality/value This study reports Islamic banking selection criteria in a pluralistic-secular Nation. The study also developed a model that can be used in studying the choice of Islamic bank in special type of environment. Thus, Islamic banking is a new reality in the Nigerian financial scene.
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Zolota, Aida. "PREJUDICES ABOUT ISLAMIC BANKING." Knowledge International Journal 28, no. 5 (December 10, 2018): 1633–39. http://dx.doi.org/10.35120/kij28051633a.
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Islamic banking has been intensively developed over the past fifty years, although Islam has existed since the 7th century. It is a banking model that operates in accordance with Sharia regulations. Islamic banks, globally, have a growing share of assets and more and more clients. They operate in Muslim-majority countries, but also in non-Muslim Majority countries. It is well-known (and most often confusing to people who do not know enough about the way these banks operate) that Islamic banks are strictly forbidden to charge interest, however, doing business in accordance with Sharia regulations has some other specificities, but also some other prohibitions. In spite of obstacles and prejudices, Islamic banking is intensively developing. Some of the most famous products/services of Islamic banks are: musharaka, mudaraba, murabaha and ijara. Bearing in mind the intensive development of Islamic banking and finance, the need for global reporting on the situation and developments in this area has arisen. Such a report has been published by the Islamic Bankers Association since 2010. The report is named Global Report on Islamic Finance (GIFR) and is published annually. Every year, the report has a specific topic that is in the focus of the report and the current information on the situation and prospects of Islamic banking and finance. What progress has been made in the development of Islamic banking and finance, and what is the current situation and role of Islamic banking and finance today, perhaps the best shows the topic that is in the focus of the GIFR 2018, which is: Global Islamic Economy and Islamic Finance. There are also so-called Islamic Indices. During the last global financial crisis, banks operating in accordance with Islamic regulations (sharia) have shown better resilience than conventional banks, and because of that they attracted the attention of the global financial community. However, the prejudices about Islamic banks and Islamic banking are still present. This was also confirmed by the research done in Bosnia and Herzegovina. The subject of this paper is prejudices about Islamic banking, and the aim of the paper is to explain the basics of Islamic banking and point out the prejudices that exist about Islamic banking in Bosnia and Herzegovina. Business in accordance with Sharia regulations (banking products / services) has been present in Bosnia and Herzegovina for 15 years. A simple random sample was selected for the survey, and the data was collected through a questionnaire. The results of the survey show that the population is still insufficiently educated about Islamic banking and that there are prejudices.
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Firdiansyah, Fitra Azkiya. "Optimization Of Human Resources Management In Islamic Banking." JPS (Jurnal Perbankan Syariah) 2, no. 2 (October 14, 2021): 150–64. http://dx.doi.org/10.46367/jps.v2i2.375.
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So far, the rapid development of Islamic banking has not been supported by competent resources according to Islamic principles. The resources contained in Islamic banking so far have been a shift from conventional banking, resulting in the incompetence of these resources in Islamic banking. This study aims to analyze the optimization of human resource management in Islamic banking following Islamic principles. The method in this research is descriptive analysis with a qualitative approach. The analysis uses deductive and inductive techniques from various published literature. The results of the study show that human resources in Islamic banking are not yet optimal. The development and development of available resources must align with the position, training, and development of attitudes and managerial skills instilled with Islamic financial and ethical principles. Islamic banking must cooperate with universities in the coaching process to absorb potential resources with added value and have Islamic-based competencies.
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Mrowiec, Paweł, and Magdalena Wójcik Jurkiewicz. "Selected characteristics of Islamic banking in context of real sphere development." Global Journal of Business, Economics and Management: Current Issues 11, no. 1 (March 30, 2021): 01–09. http://dx.doi.org/10.18844/gjbem.v11i1.4692.
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The objective of this study is to analyse the selected characteristics of Islamic banking in the context of real sphere development. It is hypothesised that Islamic economic principles could be applied to some extent to Western banking. To this end, selected features of Islamic and Western banking were analysed for their impact on the real sphere, including analysis of Islamic banks’ assets in the years 2006–2015 and the transposition of these data to assets of ten top commercial banks in the world. A literature review related to the functioning of Islamic banking, content analysis and deduction method was used to achieve this purpose. The authors, as a result of the research carried out, contradict the hypothesis indicating that it is impossible to directly compare Islamic banking to conventional banking, as the scope of services provided, system assumptions and, above all, their complexity, determines a different approach to their management and monitoring. As a result of scientific research, the authors of the paper contributed to opening new research areas in the field of Islamic banking. Keywords: Shari’ah laws, financial crisis, real sphere development, bank profitability.
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Fitriyah, Thoriqoh Nashrullah. "Development of Sharia Banking and Its Contributions for the Development of National Banking." International Journal of Nusantara Islam 8, no. 1 (May 16, 2020): 10–18. http://dx.doi.org/10.15575/ijni.v8i1.8532.
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The development and growth of shari'a banks after more than two decades in Indonesia is very spectacular, so that spurred the level of economic growth, but if it is related to the substance of the objectives of sharia bank establishment is the alleviation of poverty and unemployment, it will even increase. Based on data from research studies examining, the contribution of Islamic banking to the development of national law, namely by the existence of people who behave economically in sharia and business behavior of Muslim entrepreneurs are included in the targets of the Islamic economic movement in Indonesia. Even though it looks rather slow, the non-financial side of this economic activity is also growing.
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Mujib, Abdul. "DINAMIKA HUKUM DAN PERKEMBANGAN PERBANKAN ISLAM DI INDONESIA." Al-Ahkam 23, no. 2 (October 21, 2013): 167. http://dx.doi.org/10.21580/ahkam.2013.23.2.21.
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Almost all countries in the world including Indonesia give serious attention to the existence of Islamic banking that using religion approach in all activities and services. Institutional development it should be followed by the availability of legal basis, which is an established and clear. During the six years of its inception, the Islamic banking law stands with a very limited law basis, although the limitations of regulations have been describing aspects of sharia in Islamic banking for sure. The improvement of law is done by replacing Law No. 7 of 1992 by the Law No. 10 of 1998. This law has explicitly mention sharia aspects of Islamic banking, however Islamic banking regulation still governed together with conventional banking. The birth of Law 21 of 2008 became an important change for the development of Islamic banking. This law has given limits and a clear boundary line between Islamic banking and conventional banking in various aspects. The development of Islamic banking regulation are gaining its momentum with the enactment of Law No. 21 of 2008 concerning Islamic Banking. The strategic value of this law is increasingly opening up opportunities and legal certainty to accelerate the development of Islamic banks in the future
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Choiriyah, Choiriyah, Saprida Saprida, and Emilia Sari. "Development of Sharia Banking System In Indonesia." Mizan: Journal of Islamic Law 5, no. 1 (June 18, 2021): 17. http://dx.doi.org/10.32507/mizan.v5i1.923.
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Banking in Indonesia now increasingly enlivened by the presence of Islamic banks, which offer financial and investment products in a different way compared to conventional banks. Although it is still considered a newbie, Islamic banking is developing quite rapidly. Understandably, Indonesia is the largest Muslim country in the world and it is clear that banks that use Islamic law and principles will be more desirable. Even conventional banks in Indonesia are now following the trend by establishing Islamic institutions or Islamic business units themselves. This is done to attract more customers who are interested in the benefits of Islamic banks.Keywords: Development; System; Islamic Banking AbstrakPerbankan di Indonesia kini semakin meningkat berkat hadirnya bank syariah yang menawarkan produk keuangan dan investasi dengan cara yang berbeda dibandingkan dengan bank konvensional. Meski masih tergolong newbie, perbankan syariah berkembang cukup pesat. Maklum, Indonesia adalah negara Muslim terbesar di dunia dan jelas bank yang menggunakan hukum dan prinsip Islam akan lebih diminati. Bahkan bank konvensional di Indonesia pun kini mengikuti tren dengan mendirikan lembaga syariah atau unit usaha syariah sendiri. Hal ini dilakukan untuk menarik lebih banyak nasabah yang tertarik dengan keunggulan bank syariah.Kata Kunci: Pengembangan, Sistem, Perbankan Syariah
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Tyuleneva, T. A., R. Sh Takhtaeva, and M. B. Moldazhanov. "Problems of Islamic Banking Development in Russia." Vestnik NSUEM, no. 3 (October 2, 2019): 175–85. http://dx.doi.org/10.34020/2073-6495-2019-3-175-185.
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Léon, Florian, and Laurent Weill. "Islamic banking development and access to credit." Pacific-Basin Finance Journal 52 (December 2018): 54–69. http://dx.doi.org/10.1016/j.pacfin.2017.04.010.
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Gheeraert, Laurent. "Does Islamic finance spur banking sector development?" Journal of Economic Behavior & Organization 103 (July 2014): S4—S20. http://dx.doi.org/10.1016/j.jebo.2014.02.013.
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Gultom, Mardia Shintia Devi, and Mustapa Khamal Rokan. "Problematika Perbankan Syariah: Solusi dan Strategi Digitaliasasi dalam Meningkatkan Kualitas Produk dan Layanan Perbankan di Bank Sumut Kantor Cabang Syariah Medan." ALEXANDRIA (Journal of Economics, Business, & Entrepreneurship) 3, no. 1 (April 30, 2022): 14–20. http://dx.doi.org/10.29303/alexandria.v3i1.175.
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The purpose of this research is to find out appropriate strategies through the digitization of products and services in order to improve the quality of Islamic banking and be better known by the wider community. The aspects analyzed are islamic banking problems. The synthesis described is the solution and strategy of developing Islamic banking through the role of digitalization in improving the quality of Islamic banking products and services. Among the development strategies of Bank Sumut Syariah Sharia Branch Office Medan, namely through payment and purchasement services and services, SUMUT Mobile, ATM Services, E-Martabe Cards, Strengthening the digitization system to improve the efficiency of Islamic banking services, strengthening human resources in improving the innovation of Islamic banking products, in addition, among the management of Islamic banking development through the use of information digitization is very important so that the existence of Islamic banking is very important so that the existence of Islamic banking is very important so that the existence of Islamic banking is very important so that the existence of Islamic banking is very important so that the existence of Islamic banking is very important so that the existence of Islamic banking the higher so that people's interest in using Islamic banking services and services is increasing
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Ghozali, Mohammad, Muhammad Ulul Azmi, and Wahyu Nugroho. "Perkembangan Bank Syariah Di Asia Tenggara: Sebuah Kajian Historis." Falah: Jurnal Ekonomi Syariah 4, no. 1 (February 18, 2019): 44. http://dx.doi.org/10.22219/jes.v4i1.8553.
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The development of Islamic Banking in Southeast Asia is growing rapidly. Statistical data shows that Southeast Asia has become one of the centers for the development of the global Islamic finance industry. Literally, Indonesia and Malaysia is two countries in the region that have become dynamos for the development of the Islamic banking industry in ASEAN countries, this condition has encouraged other countries to be discussed in the development of the Islamic banking industry. The method of this paper is historical approach, which documentary methods in data collection techniques by analyzing documents that are relevant to the research topic. The conclusion of this study is that significant developments still occur in two countries, namely Malaysia and Indonesia, whereas in some countries such as Thailand, Singapore and the Philippines the development of Islamic banking is still minimal.
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Ghozali, Mohammad, Muhammad Ulul Azmi, and Wahyu Nugroho. "Perkembangan Bank Syariah Di Asia Tenggara: Sebuah Kajian Historis." Falah: Jurnal Ekonomi Syariah 4, no. 1 (June 24, 2019): 44. http://dx.doi.org/10.22219/jes.v4i1.8700.
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The development of Islamic Banking in Southeast Asia is growing rapidly. Statistical data shows that Southeast Asia has become one of the centers for the development of the global Islamic finance industry. Literally, Indonesia and Malaysia is two countries in the region that have become dynamos for the development of the Islamic banking industry in ASEAN countries, this condition has encouraged other countries to be discussed in the development of the Islamic banking industry. The method of this paper is historical approach, which documentary methods in data collection techniques by analyzing documents that are relevant to the research topic. The conclusion of this study is that significant developments still occur in two countries, namely Malaysia and Indonesia, whereas in some countries such as Thailand, Singapore and the Philippines the development of Islamic banking is still minimal.
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Suwanto, Suwanto. "PERAN SERTA LEMBAGA PENDIDIKAN TINGGI DI KOTA SEMARANG DALAM MENDORONG PERTUMBUHAN PERBANKAN SYARI’AH DI KOTA SEMARANG." INFERENSI 6, no. 2 (December 1, 2012): 393. http://dx.doi.org/10.18326/infsl3.v6i2.393-416.
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The purpose of this research is intended to determine the role of the IAIN Walisongo Semarang in encouraging the growth of sharia banking in Semarang. A descriptive qualitative method is applied in order to obtain data in this study through collecting and analyzing the related literature to this research. Moreover observation, interviews and secondary data on the development of Islamic banking from sharia banking statistic Indonesian Banking are caried out. The finding shows that the IAIN Walisongo Semarang has a role in encouraging the growth of sharia banking in Semarang through the development discourse and discipline of Islamic economics to open a graduate studies program of applied science of Islamic banking, the establishment of Islamic financial institutions BMT Walisongo, cases and the concept of derivation Development Sharia Banking, Products and Services, Socialization, and Human Resource Competencies, Roles in providing competence human resources on Islamic banking, Development and Assistance to financing customers, dissemination of Islamic banking in the community, cooperation with agency of Sharia Financing, involvement of State Polytechnic of Semarang in Islamic banking in financing, and Encouraging society become customer of Islamic Banking. Finally the higher education institutions in Indonesia have an opportunity to meet the needs of Islamic banking industry through the activities of Tri Darma Perguruan Tinggi, especially to help the business sectors to alleviate the problems derivation and translation of national rules of Islamic Banking, products and services, socialization, and human resource competencies.
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Adriansyah, Ahmad, Fathoni Zoebaedi, and Ramzi A. Zuhdi. "Does the Principle of Running a Business in Conventional Vs Sharia Become Differentiator? Study on Banking Industry in Indonesia 2009 - 2014." Jurnal Ilmu Manajemen & Ekonomika 8, no. 2 (June 30, 2016): 116. http://dx.doi.org/10.35384/jime.v8i2.10.
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Comparing to conventional bank, Islamic banking industry in Indonesia relatively still in the early development stage. Islamic bank is different with conventional bank, and therefore there is a special regulation for Islamic bank. Research conducted in 22 countries (including Indonesia), shows that Islamic banking and has differences with conventional banking in term of business orientation, efficiency, asset kuality and stability. But other research 13 countries (not including Indonesia), show that Islamic banking’s performance is lower than conventional banking (Ariss, 2010). Islamic banking in Indonesia has a unique characteristic. Most of Islamic banking in Indonesia is converted from conventional bank, owned by conventional bank or originated from a conventional bank. Some resource of Islamic bank comes from conventional banking even some of them still using resource from their conventional bank as their parent. This result raises a question, whether in the context of Islamic banking in Indonesia, its performance is significantly different from conventional banks. To answer the research questions above, we do a t-test on ROA and ROE Islamic banks and conventional banks from 2009-2014. The results showed that there was no significant difference between the financial performances of Islamic banks with conventional banks, except for 2014. In 2014 Islamic bank’s ROE is lower than conventional banks. This research opens the opportunity to study the factors that could cause a difference in the performance of Islamic banks vs conventional banks.
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Syarif, Ahmad. "Forecasting the Development of Islamic Bank in Indonesia: Adopting ARIMA Model." JTAM (Jurnal Teori dan Aplikasi Matematika) 4, no. 2 (October 3, 2020): 190. http://dx.doi.org/10.31764/jtam.v4i2.2790.
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Financial activities that are often carried out by people in developed and developing countries. Banks can collect public funds directly from customers, then distribute them to the public. Islamic banks still have a good reputation in the community so that the assets and third party funds of Islamic commercial banks grow. This is also reinforced by public optimism due to regulation of Banking Synergy in One Ownership for the development of Islamic Banking. The purpose of this study is to forecast the growth of Islamic banking after the implementation of banking synergy regulations in one ownership as an effort to increase the efficiency of the Islamic banking industry. This study used the secondary data all of the Islamic Banks in Indonesia from Financial Service Authority by Autoregressive Integrated Moving Average (ARIMA) period 2015-2019 as the estimated data and 2020-2022 as the forecasting data in quarter. This study used two variables, asset and third-party fund, to estimate the best model. The result shows ARIMA (0,1,1) has the small AIC and significant value as best estimation model. The growth of Islamic banks in 2020 will increase by 7.4 % in assets and 7.3 % by the end of 2022 to IDR 437 trillion. Meanwhile, third party funds by the end of 2022 will increase by 8 % with total third party funds of IDR 361 trillion. Banking Synergy in One Ownership Order has the potential to increase the effectiveness and the efficiency of the Islamic Banking Industry at future.
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Hassan, Muhammad Taimoor, M. Atif Sattar, M. Adnan Tousif, Nukhba Nasir, Mehwish Sadiq, and Malka Yasmeen. "Role of Islamic Banking in Agriculture Development in Bahawalpur, Pakistan." International Journal of Learning and Development 2, no. 3 (May 19, 2012): 123. http://dx.doi.org/10.5296/ijld.v2i3.1817.
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Purpose - The basic purpose of this research paper conducted is to report the findings of this experimental study conducted in Bahawalpur region, about the role of Islamic banking in agriculture sector from the users and non-users (users of conventional banking) of Islamic banking. Design/methodology/approach - This descriptive and qualitative research is conducted and focuses on two main groups of banking customer’s users and non users of Islamic banking and also informal interview with managers of some banks. A survey questionnaire was developed that subsequently get response from 120 respondents. Hypothesis analysis is the main tool of analysis in which mean, standard deviation; variance and chi-square tests are applied using SPSS 16.0. Findings - After the through study of body of knowledge we find that there is significant relationship between Islamic banking and agriculture sector. Islamic banking is providing easy terms of financing like Ijarah, Diminishing musharaka, Murabaha, salam and bai salam and similarly providing different types of working capital like Murabaha, Musawamah, Salam, Muzara’a. These terms of financing increase the asset ownership, yield and income of farmers. Islamic banking is not providing any financing for irrigation system and farmers are facing problem of credit standing and problem of collateral. Practical Limitations/Implication – Most of the concerned articles are taken from the Pakistan, Malaysia, etc. there was limited time for conducting research and receiving response from respondents. The sample size is of small size subsequently of 120 respondents and applicable to Bahawalpur region. As this result is implemented to Bahawalpur region only so therefore pilot study to whole Pakistan is suggested. Originality/Value -The aim of this paper is to provide and make attention toward of role of Islamic banking the Bahawalpur region of southern Punjab, Pakistan as the previous studies were country wide. This paper will help to conduct same type of researches in other regions of Pakistan. Keywords - Role of Islamic banking, Agriculture sectors.
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Kabiru, Kamalu, and Wan Hakimah Binti Wan Ibrahim. "CAN ISLAMIC BANKING DEVELOPMENT SPUR FINANCIAL INCLUSION IN OIC MEMBER COUNTRIES?" Asian People Journal (APJ) 3, no. 1 (April 30, 2020): 170–85. http://dx.doi.org/10.37231/apj.2020.3.1.181.
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Islamic financial instruments of profit-loss-sharing and redistributions are capable of including people hitherto outside the formal financial system into mainstream formal finance thereby increasing the level of financial inclusion. Globally, OIC member countries have the highest number of adult age 15 and above without access to a formal bank account (53.7%). The primary purpose of this study is to investigate how does Islamic banking can increases the level of financial inclusion in OIC member countries. The work employed the use of system GMM, second-generation cointegration test and causality test to achieve this objective. The data used in this study were obtained from world development indicators, GLOBAL Findex and OIC statistical database from 2013 to 2018. The result found that Islamic banking significantly affects the level of financial inclusion in OIC member countries, and the impact found to be positive and significant when the interaction of Islamic banking and institution were used. Moreover, Islamic banking is found to cause financial inclusion, with no bidirectional causality. Other independent variables, GDP per capita, Institution and domestic to private sector are found to have positive impact on financial inclusion. The results confirmed that, Islamic banking has positive impact on financial inclusion in OIC member countries. In order to promote financial inclusion the policymakers in OIC member countries should consider improving the level of Islamic banking development, so that more people outside the formal financial system will be included.
Keywords: Islamic banking development, Financial inclusion, Generalised Methods of the Moment (GMM), Organisation for Islamic Cooperation (OIC) member countries
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Ismail, Naima, and Mohamad Sabri bin Haron. "Islamic Banks." INTERNATIONAL JOURNAL OF MANAGEMENT & INFORMATION TECHNOLOGY 10, no. 1 (June 25, 2014): 1754–61. http://dx.doi.org/10.24297/ijmit.v10i1.647.
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Islamic banks has development in many aspects in practical performance of banks function, this was a limited activity in service Banks and commercial processes. Later, it came to They possess financial power and ability to create Islamic loans. They possess financial power and ability to create Islamic loans. Economical union supported by banks is not restricted to a domestic sphere, but has expanded internationally as its operations enjoy fidelity and fulfillment between banking organizations in different countries. As banking systems Islamic banks had developed, they are no longer restricted to role of being financial and service organizations, but have become money market within public sector. Furthermore, they follow up monetary flows and banking securities, by playing positive role of providing the organized money market with enough information about commercial activities. In addition, as a financial mediator who has adequate statistics about other economical units, besides its main role in creating successful development plans and riskless investment.
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Kuryanova, Irina Vladimirovna, and Memet Serverovich Abibullaev. "FORMATION PRINCIPLES AND BASIC MODELS OF ISLAMIC BANKING." Scientific Bulletin: finance, banking, investment., no. 2 (55) (2022): 83–92. http://dx.doi.org/10.37279/2312-5330-2021-2-83-92.
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The article is devoted to the development of theoretical and methodological grounds of the Islamic banking study as well as scientific and practical recommendations towards its principles implementation in the traditional banking systems. In the thesis the methodological grounds of the Islamic banking study are considered in the context of the global financial system development paradigm; the principles of Islamic banking formation are defined and its basic models are characterized. The role and place of the Islamic banking in the global financial system are studied; the current state of Islamic banking integration in the traditional banking systems is analyzes
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Kuryanova, Irina Vladimirovna, and Memet Serverovich Abibullaev. "FORMATION PRINCIPLES AND BASIC MODELS OF ISLAMIC BANKING." Scientific Bulletin: finance, banking, investment., no. 2 (55) (2022): 83–92. http://dx.doi.org/10.37279/2312-5330-2021-2-83-92.
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The article is devoted to the development of theoretical and methodological grounds of the Islamic banking study as well as scientific and practical recommendations towards its principles implementation in the traditional banking systems. In the thesis the methodological grounds of the Islamic banking study are considered in the context of the global financial system development paradigm; the principles of Islamic banking formation are defined and its basic models are characterized. The role and place of the Islamic banking in the global financial system are studied; the current state of Islamic banking integration in the traditional banking systems is analyzes
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Khan, Muhammad Saqib, Shaheera Munir, and Ammara Mujtaba. "THE ISLAMIC VS CONVENTIONAL BANKS: AN EVIDENCE ON THE ECONOMIC DEVELOPMENT." JUNE 02, no. 01 (June 30, 2021): 68–81. http://dx.doi.org/10.53664/jsrd/02-01-2021-07-68-81.
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This paper highlights how financial and conventional bank system contribute to economic growth. As the Islamic banking system is grounded on shariah’s laws and Usury/RIBA (interest) are prohibited in Islam so there will be no tax shield in this banking system and they have to pay more tax as compared to the conventional banking system. By analyzing their performance and using the gross value-added contribution of both banking systems was observed. Six banks are selected for this purpose of which 3 Islamic banks i.e. Dubai. It is quantitative research so different ratios are used to examine both banking system performance and gross value added to give us information that to what extend both banking systems are contributing to the economy. In an examination, it has been exposed that both banking systems are conducive much to economy as conventional banks are developed their infrastructure is bigger than Islamic banks where Islamic banks just start near past a few years back.
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Al-Zu'bi, Bashir. "Islamic Economics, Banking and Finance." American Journal of Islam and Society 15, no. 1 (April 1, 1998): 162–65. http://dx.doi.org/10.35632/ajis.v15i1.2210.
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The course was organized by the Islamic Development U.K., in cooperationwith the Islamic Development Bank, Jeddah, Saudi Arabia, andLoughborough University, Loughborough, U.K. More than 100 guestspeakers, organizers, and participants attended.The participants were very active in panel discussions. The topicsincluded Islamic banking and fm ance, Islamic economics, economicdevelopment from the Islamic perspective, the creation of money, therationale of prohibiting interest and its prohibition in western literature,debt, equity, Islamic fund management, the role of zakat in the eradicationof poverty, Islamic finance in the West, and the new halal investmentcompany in Europe. As a starting point, Dr. Umer Chapra presented a paper on the presentstate of Islamic economics. He emphasized the importance of economicsin explaining the fall of Muslim power. He also pointed out the effect ofIslamic values and institutions, including zakat and the abolition of interest.He added that now it is time to solve the practical problems that theMuslim countries are facing and also to show ways of realizing theIslamic vision of a society where development is taking place with justice.Dr. Monawar Iqbal talked about the rationale of Islamic banking andthe services that people are in need of, e.g., investment in the form ofmudarabah, musharakah, and murabah.Attention was juid to the following features of Islamic banking: risksharing, productivity as compared to credit worthiness, moral dimension,equity, efficiency, stability, and growth.The experience of Islamic banking in Pakistan, Iran, and Sudan wasdiscussed. In addition, there was a discussion on multinational entities(e.g., Islamic Development Bank). Dr. Iqbal emphasized the major problemsfacing Islamic banking such as lack of profit sharing on the assetside, adverse selection, moral hazard, lack of project appraisal machinery,lack of project monitering, defaulters and the issue of penalties,illogicality of the Islamic financial market, short-term asset structure,excess liquidity, short-term placement of funds, lack of a lender of lastresort, difficulties in issuing letters of guarantee, and taxation.Despite these problems, 192 Islamic banks were operating by the endof 1996. An analysis of 166 of these banks was made by Dr. SamirShaikh, who described their current profile and showed that their netprofit in 1996 was $1,683,648. On the suggestion of Dr. Tarigullah Khanthe principles of Islamic finance were grouped into the following categories:benevolence, sharing principle, deferred sale-principle, andsharing-cum-deferred sale ...
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Nastiti, Nur Dyah, and Rahmatina Awaliah Kasri. "The role of banking regulation in the development of Islamic banking financing in Indonesia." International Journal of Islamic and Middle Eastern Finance and Management 12, no. 5 (November 11, 2019): 643–62. http://dx.doi.org/10.1108/imefm-10-2018-0365.
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Purpose The 2015 global economic crisis has triggered the issuance of several banking regulations in Indonesia, including those related to temporary stimulus for Islamic banks and branchless banking (fintech). However, few studies attempt to evaluate the effectiveness of such regulations. Thus, this study aims to determine the role and assess the effectiveness of such banking regulations. Design/methodology/approach The data used cover all 12 Islamic commercial banks in Indonesia during the stimulus period of Q3.2015 to Q2.2017. The variables included were banks’ fundamental factors (Islamic financing, capital adequacy ratio, investment, non-performing financing, return on asset, efficiency, financing deposit ratio and fintech) and macroeconomic variables (inflation, exchange rate and money supply). The model was analyzed by using multiple linear regressions with generalized least square estimation technique. Findings The main finding suggests that the stimulus regulation indeed played a positive role in the acceleration of Islamic bank financing. However, the fintech-related regulation was not yet effective to achieve the goal, at least in the short term. Furthermore, the study found that return of assets, operational efficiency, financing deposit ratio and money supply also influenced Islamic financing. Practical implications For policymakers, the effectiveness of the temporary stimulus in accelerating Islamic banking financing and preventing the possible negative impacts of the external crisis provides indications that the regulator could conduct similar policy in the future. More generally, the findings are also expected to enrich Islamic banking literature. Originality/value This is possibly one of the few studies to investigate the role and effectiveness of banking regulations on Islamic banking financing in Indonesia.
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Sa’id, Hadiza. "Exploring the development of Islamic banking in Nigeria using an actor-network theory perspective." Journal of Islamic Accounting and Business Research 11, no. 5 (January 13, 2020): 1083–99. http://dx.doi.org/10.1108/jiabr-02-2018-0027.
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Purpose The purpose of this paper is to investigate the evolution of Islamic banking in Nigeria. Design/methodology/approach The paper adopts a qualitative approach using 25 semi-structured interviews together with documentary analysis to analyse how Islamic banking has evolved in Nigeria. Findings The paper demonstrates that the evolution of Islamic banking in Nigeria arose from a relationship between various human and non-human actors. The development was shaped by the Nigerian socio-economic environment, particularly the wealthy Muslim segment and the poor performance of the economy. Practical implications The study’s findings have practical implications for how governments in countries with diverse religions or ethnicities should take action when introducing new practices or concepts, such as Islamic finance, that align with one religion or ethnicity. The findings of this study suggest that publicising what the new practice or concept is in advance to the entire populace will enhance understanding and subsequent acceptance. Originality/value The paper differs from previous studies on the development of Islamic banking in two ways. First, it provides a contextual account of the various factors that have influenced the development of Islamic banking in Nigeria, a sub-Saharan Africa country for which research on Islamic banking is sparse. Second, the paper is unique in analysing how Islamic banking emerged as a process of actor-network formation.
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Olayiwola, Habeeb Olaniyi. "Islamic Banking Products and Economic Development in Nigeria: A Co-Integration Approach." Journal of Islamic Economic and Business Research 1, no. 2 (December 30, 2021): 169–79. http://dx.doi.org/10.18196/jiebr.v1i2.30.
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The authorization of Taj Bank Limited to operate Islamic banking in Nigeria has reiterated the relevance of Islamic banking products and services in the nation’s economy. However, the rate of patronage has been dampened compared to the conventional banks due to the issues of regulations and taxes, issues revolving around Sharia Scholars, Sharia-compliant products, and lack of awareness, among others. The study, therefore, investigates the nexus between Islamic banking products and economic development in Nigeria between 2013Q1 - 2019Q4. The data such as Human Development Index (HDI) proxy of economic development, and Islamic banking products; Murabahah (MUR), Wadiah (WAD), Istisna (IST), and Ijarah (IJA) were gathered from United Nations Statistics and Prudential and Structural Islamic Financial Indicators (PSIFIs). The data were analyzed using Eviews 9. The techniques adopted include descriptive statistics, correlation matrix, unit root test, co-integration statistics and Error Correction Model (ECM). The unit root test showed that all the data series were stationary at the first difference I(1). The co-integration results revealed the existence of a long-run relationship between Islamic banking products and economic development. However, the error correction model established that the short-run disequilibrium would be corrected and signed in the long run at 33%. It was therefore concluded that there exists a nexus between Islamic banking products and economic development in Nigeria. The study recommends among others, that government should encourage more operations of Islamic banking so that Nigeria can achieve the objectives of financial inclusion, which is an essential ingredient of economic development.
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Utama, Andrew Shandy. "Digitalisasi Produk Bank Konvensional Dan Bank Syariah Di Indonesia." Jurnal Justisia : Jurnal Ilmu Hukum, Perundang-undangan dan Pranata Sosial 6, no. 2 (December 5, 2021): 113. http://dx.doi.org/10.22373/justisia.v6i2.11532.
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Technological developments make the world borderless. The development of information and communication technology has touched the banking sector. Based on the operational system, the types of banks can be divided into conventional banks and Islamic banks. This study aims to explain the digitalization of conventional bank products and Islamic banks in Indonesia. The method used in this research is normative legal research. The development of information and communication technology has touched the banking sector. As one of the efforts to increase bank capability, more optimal utilization of information technology development is a prerequisite in supporting bank service innovation. Therefore, digital banking is a very potential business opportunity and an inevitable necessity in the banking sector in the digital era. In addition to increasing the efficiency of bank operational activities, digital banking can improve the service quality of conventional banks and Islamic banks to customers in transactions. The Financial Services Authority of the Republic of Indonesia then issued Financial Services Authority Regulation Number 12/POJK.03/2018 concerning the Implementation of Digital Banking Services by Commercial Banks. There are forms of e-Banking services that can be used at conventional banks and Islamic banks, namely ATM (Automated Teller Machine), EDC (Electronic Data Capture), internet banking, SMS banking, mobile banking, e-Commerce, phone banking, and video. banking
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Irvani, Ahmad. "INGGRIS SEBAGAI SENTRAL KEUANGAN ISLAM DI BARAT." ASY SYAR'IYYAH: JURNAL ILMU SYARI'AH DAN PERBANKAN ISLAM 1, no. 1 (June 30, 2016): 120–43. http://dx.doi.org/10.32923/asy.v1i1.668.
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United Kingdom is a country that is predominantly by non-Muslim, but development of Islamic banking and finance is very good. This is evidenced by the operation of six full sharia bank and the sixteen banks that serve Islamic windows. Sukuk deals for investors is also growing as evidenced by the increasing demand on the London Stock Exchenge with a total of £51 billion. Likewise with takaful products, UK re/insurance markets that are transacting Islamic finance. As one of the largest insurance markets in the world, and the leading global centre for wholesale insurance and reinsurance, the UK has the potential to support the growth of takaful business in the coming years. The development of Islamic banking and finance did not escape from the multicultural population of the UK. From the research, UK residents both Muslims and non-Muslims showed 66% of respondents believe the Islamic financial system is suitable for western economic communities such as the UK. 65% of respondents understand the workings of Islamic banking differs from conventional banking workings. 60% of respondents agree Islamic banking relevant to all religions. 57% of respondents also knew of Islamic banking to give the profit, not the interest. This means that they responded positively to the products offered Islamic banking and finance. There are several factors that lead to Islamic banking and finance can be grown in the UK, there are: including the global expansion of Islamic financial, single banking and financial regulator, public policy and taxation, the establishment of the Islamic Bank of Britain, the excess liquidity in the Middle East, Islamic windows of regular banks, and the development of educational and training institutions in the UK. This paper will describe the history of Islamic banking and finance in the UK, its development, factors that support and the its future prospects for giving additional knowledge to the academics and practitioners.
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Kamaruddin, Nasrullah Bin Sapa, Hasbiullah Hasbiullah, and Trimulato Trimulato. "Integrasi Perbankan Syariah dan Fintech Syariah Pengembangan UMKM." Al-Buhuts 17, no. 2 (December 15, 2021): 177–97. http://dx.doi.org/10.30603/ab.v17i2.2325.
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The research objective is to describe the development of Islamic bank financing for SMEs, the development of sharia fintech, and the form of integration between sharia banking and the development of sharia fintech for the development of SMEs. The research method used is qualitative, related to sharia bank financing. Field research on two sharia bankings in the city of Makassar. Primary data sources through direct interviews, and secondary data from data presented from the financial services authority (OJK). Data collection techniques through interviews, documentation, and literature studies from several sources. The data analysis technique used is descriptive qualitative, by describing the development of sharia banking financing product to SMEs sector, the development of sharia fintech, and the form of integration of sharia banking and sharia fintech in the development of SMEs. The results of this study show that the development of sharia banking financing product in 2019 until the 2020 market grew by 15.93 percent, for sharia banking the type of Islamic Financing Bank (BPRS) grew 4.57 percent, while Islamic banks with the type of Sharia Business Unit (UUS) for financing trips for SMEs decreased -2.7 percent. The development of Sharia Fintech, a peer-to-peer (P2P) lending type of fintech. The number of borrower accounts increased by 325.95 percent, the number of borrower accounts in December 2019 was 18,569,123, and the number of guarantors increased by 258.56 percent with the number of loans in December 2019 of IDR 81.50 trillion. There are 12 registered sharia fintech companies. The total assets of Islamic fintech are 50,591,727,786 rupiahs. Integration between Islamic Banks and Sharia Fintech in developing SMEs needs to be carried out, to increase financial access to the public. The form of integration that can be carried out between Islamic banks and Islamic fintech is a profit-sharing scheme, which can carry out mudharabah or musyarakah contracts. SMEs may need easy access to technology services. Integration in the form of collaboration to empower SMEs.
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Lakis, Vaclovas, and Daiva Baltušytė. "ISLAMIC BANKING AS AN ALTERNATIVE TO BANKS IN THE WESTERN COUNTRIES." Ekonomika 96, no. 3 (January 31, 2018): 73–89. http://dx.doi.org/10.15388/ekon.2017.3.11571.
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After the last banking crisis in the Western world, which provoked an economic recession in many countries, the attention to Islamic banking has increased. Islamic banking took a more important place in global banking, since the economic and financial crisis there was of smaller scope than in the banks of Western countries. The principles of Islamic banking are based on Shariah requirements, which emerged from the Koran. The most important fact is that Islamic banks cannot seek profit, which does not require any risk or efforts. They do not use any financial instruments, which are not covered by assets (derivatives). On the other hand, Islamic banks, while granting loans, assume all or a part of risk, if in the case of implementation of project some losses appear. They responsibly appreciate the possibility of granting the loans, the main goal of which is to finance projects and promote business development; they share the risk with the clients and value mutual cooperation. The goal of the article is to investigate the peculiarities of Islamic banking. The article investigates the formation of Islamic banking’s main characteristics and principles, its accounting peculiarities and the instruments that are applied. Research methods include the analysis of collected information, comparison, critical assessment and induction.
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Alemu, Aye Mengistu. "Factors Influencing Consumers’ Financial Transactions in Islamic Banks Compared with Conventional Banks: Empirical Evidence from Selected Middle-East Countries with a Dual Banking System." African and Asian Studies 11, no. 4 (2012): 444–65. http://dx.doi.org/10.1163/15692108-12341241.
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Abstract Despite various evidences that show Islamic banking has gained popularity even by non-Muslim consumers and businesses in many parts of the world, there is still a general misconception that consumer’s choice for Islamic banking is only influenced by religious obligations and thus it is just a Muslim-only affair. Yet, our knowledge of consumer motivations for choosing Islamic versus conventional banking services is modest and the research to date is limited and ambiguous on these key issues. Therefore, this study conducts a two-step empirical analyses and first identifies the factors influencing customer’s decision whether to choose Islamic or conventional banking using Linear Probability Model (LPM) and Tobit estimation method, and as a second step, it investigates the main attributing factors to consumers overall level of satisfaction with the services provided by Islamic banks compared to conventional banks using ordinal-logistic regression model. The study was based on a randomly selected 322 bank customers from Bahrain, Jordan, and UAE. The study confirms that although religious factors such as Shari’a compliance are important, other non-religious factors including better quality of services and information disclosure are also playing crucial roles for the growing consumers’ demand for Islamic banking. Nevertheless; factors such as better rate of return, accessibility to credit, and SMS banking are found to be the main significant determinants of consumers’ choice and satisfaction with the services provided by conventional banks. Overall, the recent experience especially after the financial crisis of 2008 demonstrates that Islamic banking system can be part of the solution since it is mainly based on stronger regulatory system.
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Ihsan, Nurul, Nurrohman Hadi, and Muhammad Iqbal Surya Pratikto. "Analisis Minat Masyarakat Terhadap Perbankan Syariah di Wilayah Kecamatan Panceng Kabupaten Gresik." Jurnal BAABU AL-ILMI: Ekonomi dan Perbankan Syariah 7, no. 1 (April 30, 2022): 57. http://dx.doi.org/10.29300/ba.v7i1.5399.
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Islamic banking in Indonesia in recent years has experienced extraordinary developments. However, the development of Islamic banking has not been able to attract the Indonesian people to join Islamic banking. As is the case in Panceng sub-district, Gresik district where public interest in Islamic banking is still very lacking. Therefore, the purpose of this study is to find out how the interest of the people in the Panceng sub-district towards Islamic banking. The approach used in this research is a qualitative approach. The results of this study indicate that public interest in the Panceng sub-district is still very low seen from the results of interviews, observations, and so on. This is due to the lack of public knowledge of Islamic banking, then they do not understand the system and operations applied to Islamic banks, as well as a sense of comfort towards conventional banks because they first know conventional banks are also a factor in the lack of public interest in Islamic banking in the region. Panceng District.
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Gani, Ibrahim Musa, and Zakaria Bahari. "Islamic banking’s contribution to the Malaysian real economy." ISRA International Journal of Islamic Finance 13, no. 1 (January 6, 2021): 6–25. http://dx.doi.org/10.1108/ijif-01-2019-0004.
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Purpose Malaysia is one of the fastest-growing Asian economies with a properly designed and developed Islamic financial system. This unique feature of the Malaysian economy made it an important case study, and the purpose of this study is to assess for the dynamic contribution of Islamic finance to the growth of the real economy. Design/methodology/approach The study uses a quarterly data set of 20 years analysed via the autoregressive distributive lag bounds test approach to cointegration. Findings The results in the short-run show a non-significant relationship between Islamic banking indices and the real economy. However, in the long-run, financing and deposits of Islamic banks are favourable and contribute significantly to the growth of the Malaysian economy. There was an accumulation of meaningful and wide-ranging investment over the period of the study and productivity of capital was also extra-efficient. The direction of causality is found to be bidirectional between Islamic banking deposits and Malaysian gross domestic product (GDP), but there is a weak causal effect from Islamic banking financing to GDP. Research limitations/implications Malaysia has a dual financial system (conventional and Islamic) and both can affect its real economy. This research is limited to Islamic banking’s effects on Malaysian economic growth. The research also limits the scope and coverage for 20 years, from 1998 to 2017 to cover the years for which data is available for all the variables used in the study. Practical implications The results confirm that the Islamic banking sector in Malaysia is performing well in carrying out its major function of financial intermediation, which is the pooling and channelling of funds to productive investment activities. Consequently, the fact that Malaysia excels in Islamic finance is not a fluke. It is because of the effective performance of Islamic financial institutions in the country. Furthermore, Malaysian authorities are doing their level best in promoting Islamic financial activities. Originality/value The study fulfills the need to uncover the relationship between the Islamic financial system and the real economy in Malaysia. It differs from other studies as it uses the most recent available data, introduces new variables and identifies the channel by which Islamic banking development transmits growth.
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Ambarwati, Diana. "IMPACT OF FATWA UPON BANK INTEREST BAN ON THE DEVELOPMENT OF ISLAMIC BANKING IN INDONESIA." JURNAL ILMIAH MIZANI: Wacana Hukum, Ekonomi, dan Keagamaan 8, no. 2 (December 31, 2021): 235. http://dx.doi.org/10.29300/mzn.v8i2.5502.
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The purpose of this article is to describe the impact of bank interest ban fatwa on the development of Islamic Banks in Indonesia. Fatwa of the Indonesian Ulama Council number 1 of 2004 is the basis for various parties to contribute to realizing competitive Islamic banking. This fatwa has encouraged the Government to issue various rules in the form of laws and government regulations related to banking. The issuance of this rule is a serious proof of the government’s commitment to provide more space for the development of Islamic banking in Indonesia, in addition to being a proof of appreciation for the issuance of bank interest ban fatwa by the Indonesian Ulema Council. In addition, the bank’s fatwa on the ban on bungan has encouraged the role of the community to contribute real to the development of Islamic banking. The emergence of the Association of Islamic Economists (IAEI), sharia economic community (MES), the National Committee of Islamic finance which is now renamed to the National Committee of Islamic Economics and Finance (KNEKS) is a concrete evidence of community contribution to socialize and strengthen Islamic banking.
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Gazali, Ahmad. "KREDIT BERMASALAH DI PERBANKAN SYARI'AH DALAM PERSPEKTIF TEORI CACAT KEHENDAK." Alhadharah: Jurnal Ilmu Dakwah 17, no. 34 (January 7, 2019): 1. http://dx.doi.org/10.18592/alhadharah.v17i34.2382.
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The development of Islamic banking, especially in Indonesia, is currently very perspective. Therefore there is trust from the community must always be maintained. Efforts to develop and trust must support two aspects, namely the implementation of transparency with Islamic ethics and a sense of foundation that provides certainty and a sense of justice. As a sharia banking, the operational basis is Islamic law, thus the readiness of Islamic law must always exist and be able to overcome the development of the development of the Islamic banking world. This paper is only a small part of the discussion to be approved and legal norms of sharia banking are made.
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Solodovnik, Dilyara M., and Damir Z. Khairetdinov. "FEATURES OF THE ISLAMIC ECONOMY AND THE PRACTICAL IMPLEMENTATION OF ISLAMIC BANKING." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 2, no. 1 (2022): 45–50. http://dx.doi.org/10.36871/ek.up.p.r.2022.01.02.007.
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The article discusses the features of the functioning of the Islamic economy, which has specific tools for functioning on the basis of the Holy Scriptures. After centuries, these mechanisms have been effectively used by the banking sector, meeting the needs of the development of the world economy. An attempt is made to compare modern banking terminology with traditional concepts of Islamic banking. Historical examples of the use of Islamic instruments of financial and economic activity are given, as well as objective facts and figures that indicate the huge volumes of assets regulated by elements of Islamic banking in Islamic and Western countries. The special role of the so-called Islamic windows in numerous Western banks is noted.
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Rodliyah, Nunung, Recca Ayu Hapsari, Aditya Mahatidanar Hidayat, Lukmanul Hakim, and Ade Oktariatas K. "Sharia Financial Technology in the Development of Bankable Micro Businesses." International Journal of Financial Research 11, no. 6 (December 1, 2020): 203. http://dx.doi.org/10.5430/ijfr.v11n6p203.
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Fintech is one of the drivers of the existence of a movement to improve MSME finance, especially the lower middle class through Islamic financial institutions. The development of digital technology, including in the Islamic financial industry, has had a major influence with the existence of financial technology (fintech), all forms of transactions are faster, easier, and more efficient, without the need to meet in person. Financial technology collaboration with Islamic financial institutions, especially Islamic banking can increase financial inclusion at MSMEs in Indonesia. The implementation of Fintech in the Islamic banking industry will facilitate and bring business players closer, especially MSMEs to access Islamic financial service products offered and apply for financing directly without having to go directly to the branch offices. Such a model, in addition to making it easier for MSME sector business people to gain financial access, can also improve financial inclusion and improve the performance of Islamic banks. Efforts to increase the capacity of micro businesses that were originally unbankable can be increased to bankable. Where the role of related institutions such as banking and fintech, which is currently becoming popular in the community, can contribute and build micro businesses to become more independent and encourage economic development in Indonesia with the collaboration of banking institutions and micro businesses in financing.
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Ryabchenko, Liudmila. "PROSPECTS FOR THE ISLAMIC BANKING DEVELOPMENT IN RUSSIA." VESTNIK UNIVERSITETA, no. 9 (2018): 140–46. http://dx.doi.org/10.26425/1816-4277-2018-9-140-146.
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Muhammad, Ashraf. "Development and growth of Islamic banking in Pakistan." African Journal of Business Management 7, no. 32 (August 28, 2013): 3144–51. http://dx.doi.org/10.5897/ajbm11.1748.
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