Factors Influencing Customer Decisions in Mortgage Financing Ib: A Perspective Analysis of Sharia Economic Law

This study sought to evaluate the financial performance of Islamic commercial banks in Indonesia from 2018 to 2022, with a specific focus on Sharia compliance and profitability. Secondary data taken from the annual reports of commercial Islamic banks during the specified period were used and a descriptive quantitative approach was adopted. The study population consisted of all 13 Islamic commercial banks registered with the Financial Services Authority in 2022; eight banks were chosen as the research sample. The analysis method used encompasses both Sharia compliance and profitability and is called the Sharia Compliance and Profitability Model. For further analysis, the research findings were divided into four quadrants. The results of the study showed how different Islamic commercial banks in Indonesia performed in terms of Sharia compliance and profitability. It identified banks that showed strong adherence to Sharia principles and high profitability, which could be used as benchmarks by other banks to improve their performance. In more detail, The findings of this research included 3 aspects, namely 1) Identification of Sharia Compliance, this study identified the parameters used to assess Sharia compliance, such as compliance with the principles regulated by the Indonesian Ulema Council (MUI) or equivalent Sharia regulatory institutions. The results of this research revealed banks that consistently complied with Sharia principles in their operations and products. This could include banks that had a financial structure that complied with Islamic law, avoids usury, and adhered to the principles of fairness in transactions. 2) Profitability Assessment. Financial analysis has been carried out to assess the profitability of the investigated banks. This could include profitability ratios such as ROA (Return on Assets) and ROE (Return on Equity), as well as the profit growth from year to year. 3) Factors that influenced the Performance as well as the analysis also included an exploration of factors that contributed to bank performance in terms of Sharia compliance and profitability. This could include internal factors such as risk management and operational efficiency, as well as external factors such as market conditions and regulations. The research has practical implications for commercial banks for enhancing performance and adhering to Islamic values in highly profitable banks that strictly adhere to Sharia principles. By examining the connection between Sharia compliance and profitability, this study added to the understanding of the financial performance of Indonesia's Islamic commercial banks.

A juridical-philosophical analysis of the position of sharia compliance in Islamic banking in Indonesia aims to explore the understanding and legal foundation underlying the implementation of sharia principles within the Islamic banking industry. In this context, sharia compliance refers to adherence to Islamic legal principles that must be applied by Islamic banks in all aspects of their operations, including financial products and services. Islamic banking in Indonesia has a clear legal foundation, namely Law No. 21 of 2008 on Islamic Banking, which provides the legal basis for the development of Islamic banking in Indonesia. In this regard, sharia compliance becomes a crucial element to ensure that transactions and banking activities do not violate sharia principles such as the prohibition of riba (interest), gharar (uncertainty), and maysir (gambling). Philosophically, the implementation of sharia compliance in Islamic banking is not only related to legal aspects but also to moral and ethical aspects in Islam that prioritize justice, blessings, and social welfare. From this perspective, sharia compliance functions as a foundation to create an economic system that is fair, transparent, and based on adherence to religious values. However, challenges in implementing sharia compliance in Islamic banking in Indonesia still exist, particularly related to differences in interpreting the implementation of sharia principles, as well as the need to continuously align regulations and operational practices to keep pace with global economic developments. Therefore, the position of sharia compliance in Islamic banking in Indonesia is not only a legal obligation but also a commitment to integrate moral principles into the management of the financial sector, which ultimately aims to create the welfare of the community within a just economic system.

The history of Islamic banks in Indonesia is started by establishment of Bank Muamalat Indonesia (BMI) as the first Islamic commercial bank in Indonesia that has been operated in Indonesia in 1992. Until December 2007, there are 31 banks: 3 Islamic commercial banks and 28 Islamic unit banks. Islamic commercial bank operates fiilly sharia system, while Islamic unit bank operates windows system. During 2003-2007, Islamic banks have been grown significantly include asset, deposit and financing. Each grows 53%, 56% and 55% per year. Islamic banks must improve thier efficiency in order to give profit to stakeholders, and survive againts conventional banks or other financial institutions. Nevertheles, until today the efficiency of Islamic banks in Indonesia is not known. This study to identify: the efficiency of Islamic banks in Indonesia (overall), the efficiency of individual Islamic bank, the difference efficiency of Islamic commercial bank and Islamic unit bank, and the most influence factor to the efficiency of Islamic banks in Indonesia. This study focused on the head office of Islamic banks. The study uses data quarterly from fist quarter 2003 until fouth quarter 2007, includes nine banks: three Islamic commercial banks and six Islamic banking units. This study uses non-pametric DEA model. The results of this study show the efficiency of Islamic banks in Indonesia is average 0.883, and the most efficient Islamic banks is bank 1 (from Islamic commercial bank). Furthermore, the result of study indicates that Islamic commercial bank (BUS) is more efficient than Islamic unit bank (UUS). Besides that, financing is the most influence factor to the efficiency of Islamic banks in Indonesia. As the basic implication of this study are: (i) stakeholders especially government and monetary authority must improve the efficiency of Islamic banks and support and establish more Islamic commercial bank; (ii) stakeholders must support and establish more Islamic commercial bank, includes spint off Islamic unit bank to be Islamic commercial bank; and (iii) Islamic banks must give more financing to improve their efficiency.Keywords: Efficiency, Islamic commercial bank, Islamic unit bank, DEA

This study aims to examine the Influence of Sharia Compliance and Islamic Corporate Governance on fraud on Islamic banks in Indonesia. The independent variable that was mummified was sharia compliance with Islamic Income Ratio (IsIR), Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), and Islamic Corporate Governance. The dependent variable used is fraud that occurs in Islamic commercial banks in Indonesia. The research method used in this study is the method of library research. The type of data used is secondary data in the form of financial statement data and annual GCG implementation reports for the period of 2014 to 2018. The population in this study were all Sharia Commercial Banks (BUS) registered at Bank Indonesia in the period 2014 to 2018. The sample was selected using the purposive sampling method. The total sample used in this study amounted to 11 Islamic Commercial Banks with a study period of 5 years. The analytical method used in this study is multiple regression processed using SPSS version 23. The results of this study indicate that the variable sharia compliance as a proxy Islamic Income Ratio (ISIR), Profit Sharing Ratio (PSR), Islamic Investment Ratio (IIR), have a negative effect on Islamic bank’s fraud while Islamic corporate governance had no effect on fraud in Islamic banks in Indonesia.

Sharia compliance is essential for Islamic financial institutions. This study has two objectives, namely, to determine the level of sharia compliance in Islamic banks in Indonesia, as well as to prove whether sharia compliance affects the performance of Islamic banks in Indonesia. To prove this, the researcher observed the annual report of 11 Islamic banks in Indonesia for the period 2012 to 2016. Sharia compliance is measured through the level of sharia governance in Islamic banks. Sharia governance instruments used to refer to Hasan (2011). While ROA and ROE measure the performance of Islamic banks, content analysis is used to identify sharia governance disclosures in annual reports. The study revealed that on average, the level of sharia compliance of Islamic bank in Indonesia is at the level of best practice while the results of statistical tests prove that there is no significant effect sharia compliance on the performance of Islamic banks both measured by ROA and ROE.

This research aims to test the effect of the responsibilities of the Sharia Supervisory Board, Sharia Compliance, issuance of Sharia securities, and the size of the Board of Commissioners on the level of disclosure of Islamic Social Reporting at Islamic Banks in Indonesia. This study used descriptive and correlational quantitative methods. The method of data collection is to use secondary data sources, and in terms of the way the data collection method in this study uses data collection techniques with documents in the form of annual financial statements and GCG reports. The data analysis method in this study uses descriptive statistics and classical assumption tests consisting of normality tests, multicollinearity tests, and heteroplasticity tests. The population in this study is Sharia Commercial Bank in Indonesia for the period 2016-2020 which amounted to 14 Islamic Banks. The sample determination technique was carried out using purposive sampling techniques with criteria: Sharia Commercial Bank which publishes annual reports and GCG reports and lists the results of GCG Self Assessment in 2016-2020, from these criteria, a sample of 13 Islamic Banks was obtained. The results of this study showed that partially the variables of the Responsibilities of the Sharia Supervisory Board, Sharia Compliance variables, and the Board of Commissioners Size variables had no effect on the ISR Disclosure Rate at Islamic Banks in Indonesia for the period 2016-2020, it can be concluded that H1, H2, and H4 were rejected. While on the variable issuance of Islamic securities shows that partially the Issuance of Sharia Securities affects the Level of ISR Disclosure at Islamic Banks in Indonesia for the period 2016-2020, it can be concluded that H3 is accepted. Simultaneously the variables of the Responsibilities of the Sharia Supervisory Board, Sharia Compliance, Issuance of Sharia Securities, and the Size of the Board of Commissioners have a significant effect on the Level of ISR Disclosure on Islamic Banks in Indonesia for the period 2016-2020, it can be concluded that H5 is accepted.

Use and disclosure of non-halal income in Islamic banking in Indonesia to analyze the use and disclosure of non-halal income in the financial statements of Islamic banking in Indonesia. The purpose of this study is to find out whether Islamic banking in Indonesia has explained the use and disclosure of non-halal income. The research method used is a qualitative method with a descriptive approach. The data used is a type of secondary data. The secondary data referred to in this study was taken from the annual reports of Islamic Commercial Banks (BUS) in Indonesia for the 2020-2021 period which have been published on the official website of each bank that is a member of Islamic Commercial Banks (BUS). Meanwhile, the reports referred to in this study include non-halal income financial reports, both those that are an integral part of a report and those that stand alone. The population in this study is all Islamic Commercial Banks (BUS) in Indonesia for the 2020-2021 period. The results of the research show that in 2021 only Bank Aladin Syariah does not have non-halal sources of income. Meanwhile, for other banks, namely Bank Panin Dubai Syariah in 2020 and 2021, it does not explain the use and acquisition of non-halal income. Other banks such as Bank Bukopin Syariah, Bank Aceh Syariah, BTPN Syariah, BCA Syariah, BJB Syariah, and BSI have explained the source and use of benevolent funds in their financial reports.

This study empirically demonstrates efforts to strengthen the performance of identity and corporate governance on the sustainability of Islamic banking in Indonesia, the influence of corporate identity performance on Islamic banking governance in Indonesia, and the influence of the performance of corporate identity and governance on the sustainability of Islamic banking in Indonesia. This is due to the low social function of Islamic banks in Indonesia towards the sustainability of better business, social, and environmental performance. Types of quantitative research with an ex post facto research design. The research population of all Islamic banks in Indonesia included BMI, BSI, BMSI, and BSMI samples. The data were analysed using simple additive weighting techniques by modelling using SEM-PLS techniques. The study's conclusions show that strengthening corporate identity performance and corporate governance towards the sustainability of Islamic banking in Indonesia is carried out with regulations, policies, and Sharia compliance. Corporate identity performance positively and significantly affects Islamic banking governance in Indonesia. A company's management has no effect on the sustainability of Islamic banking in Indonesia. This study provides recommendations from the government as a policy regulator that contributes to the supervision of Islamic banks in Indonesia, especially in the implementation of corporate governance, which includes the ethical performance of companies and the sustainability of Islamic banking in Indonesia by making systematic regulations as a reference for Islamic banks. Islamic banks in Indonesia need to re-reflect on neglected social activities because they prioritise commercial activities too much, thus ignoring social activities which are also at the core of bank activities as intermediary institutions and financial services.

The growing prominence of Islamic banks in Southeast Asia highlights the importance of understanding their financial performance to maintain public trust and enhance competitiveness. This research aims to compare the financial performance of Islamic commercial banks (BUS) in Indonesia and Malaysia by employing the Sharia Conformity and Profitability (SCnP) method and analyzing the application of the Islamic Corporate Governance (ICG) index. Using a quantitative descriptive approach, the study utilizes financial performance data from the 2021-2022 annual reports of selected banks. The SCnP method categorizes Sharia banks into four quadrants: Upper Right Quadrant (URQ), Lower Right Quadrant (LRQ), Upper Left Quadrant (ULQ), and Lower Left Quadrant (LLQ). Results indicate that Bank BCA Syariah (BCAS), Bank Syariah Indonesia (BSI), and National Pension Savings Bank (BTPNS) demonstrate superior performance, as they are positioned in the URQ. Additionally, the ICG analysis reveals that Bank Muamalat Malaysia Berhad (BMMB) achieves the highest governance index score at 62%, followed by BCAS from Indonesia at 56%. These findings provide valuable insights for policymakers and bank managers, emphasizing the critical role of governance and Sharia compliance in driving the success of Islamic banks in the region

PurposeThe study proposes an extended model of the technology acceptance model (TAM) by including Sharia compliance (SC), knowledge of SC and confidence in SC, in addition to perceived usefulness (PU) and perceived ease of use (PEOU). This research aims to investigate its impact on satisfaction, applied in e-banking of Indonesian Islamic banking. Also, the authors study the role of SC, knowledge of SC and confidence in all relationships in TAM in explaining customer satisfaction.Design/methodology/approachData collecting in this research is a self-administered survey by sending questionnaires to respondents online via e-mail or WhatsApp. The number of collected data are 300 completed questionnaires. Hypothesis testing and analyses in this research use the multiple linear regression model.FindingsThis study finds that SC, knowledge about SC and belief in SC have a significant impact on customer satisfaction of Islamic banks using e-banking. The most important finding in this study is that SC, knowledge about SC and belief in SC significantly moderate the relationship between PU and PEOU with customer satisfaction.Originality/valueThe originality of this research is exploring the role of SC, knowledge of SC and confidence in SC in all relationships, and it is expressed in the original TAM to explain customer satisfaction. This study has never been applied in previous studies, particularly studies of Islamic bank e-banking in Indonesia. This study highlights the importance of SC in the extended TAM, as a distinguishing factor between e-banking provided by Islamic banks and conventional banks, as well as the role of knowledge and confidence in SC. The authors propose policies that will be useful for the improvement of the market share of Islamic banking in Indonesia.

This study aims to explain the effect of ijarah financing on profitability at Islamic commercial banks in Indonesia, explain the effect of murabahah financing on profitability at Islamic commercial banks in Indonesia and explain the effect of ijarah and murabahah financing on profitability at Islamic banks in Indonesia. The research method used in this study is a quantitative approach with statistical analysis to test the effect of Ijarah and Murabahah financing on the profitability of Islamic banks in Indonesia. The population used is Islamic banks in Indonesia. The samples used in this study were 8 Islamic Banks in Indonesia using purposive sampling technique. The data collection technique used is literature study. The data analysis technique used is the statistical method of multiple linear regression analysis using SPSS. The results showed that there was a negative and significant influence between Ijarah on return on assets, there was a positive and significant influence between Murabahah on return on assets, there was no influence between Ijarah on return on assets and there was a positive and significant influence between Ijarah and Murabahah on return on assets.

This study aims to explain the effect of ijarah financing on profitability at Islamic commercial banks in Indonesia, explain the effect of murabahah financing on profitability at Islamic commercial banks in Indonesia and explain the effect of ijarah and murabahah financing on profitability at Islamic banks in Indonesia. The research method used in this study is a quantitative approach with statistical analysis to test the effect of Ijarah and Murabahah financing on the profitability of Islamic banks in Indonesia. The population used is Islamic banks in Indonesia. The samples used in this study were 8 Islamic Banks in Indonesia using purposive sampling technique. The data collection technique used is literature study. The data analysis technique used is the statistical method of multiple linear regression analysis using SPSS. The results showed that there was a negative and significant influence between Ijarah on return on assets, there was a positive and significant influence between Murabahah on return on assets, there was no influence between Ijarah on return on assets and there was a positive and significant influence between Ijarah and Murabahah on return on assets.

<em>This research aims to analyze the effect of Sharia Compliance, Islamic corporate Governance, Intellectual Capital, and Earnings Management toward the Financial Performance of Islamic Banks. The research method uses a quantitative approach with secondary data. Data were obtained from 12 (twelve) Islamic Commercial Banks in Indonesia, which were selected using the purposive sampling technique. The analysis technique used is Structural Equation Modeling-Partial Least Square (SEM-PLS). The results showed that Sharia compliance has an effect on the financial performance of Islamic banks. Islamic corporate governance has an effect on earnings management and financial performance of Islamic banks, and intellectual capital has an effect on the financial performance of Islamic banks. Meanwhile, earnings management has no effect on the financial performance of Islamic banks. The findings of this study provide evidence that the variables of Sharia compliance, Islamic corporate governance, and intellectual capital can help Islamic banks in Indonesia improve their financial performance. In addition, these findings will contribute to the literature on the determinants of Islamic bank financial performance.</em>

This study aims to examine the factors that influence corporate decision-making factors in transactions with Islamic banks in Indonesia and recommend strategies to increase corporate customers in Islamic banking to increase their market share considering that corporate customers have large purchase power parity. This study was conducted to fill the research gap where it will be analyzed how the factors that influence the decisions of corporate customers in Indonesia in transacting with Islamic banking. The sample in this study is financial decision-makers in corporations consisting of the CEO, CFO, Head of Finance, Vice President Finance, and GM Finance. Sampling in this study used the Slovin formula with a target sample of 394 respondents, both Muslim and non-Muslim. The results of this study indicate that in general the level of knowledge of sharia from both Muslim and non-Muslim respondents is still minimal for basic muamalah fiqh knowledge. From the results of the analysis, it was found that the variables of service quality and sharia compliance affect the reputation of Islamic banks in Indonesia, where the reputation of Islamic banks is the only variable that directly affects the decisions of corporate decision-makers in transactions with Islamic banks. Meanwhile, the variables of religiosity, sharia knowledge, the role of company shareholders do not have a positive influence on the dependent variable. Finally, this study recommends the management of Islamic banks to determine strategic steps to improve reputation as the most decisive variable for a company to transact with Islamic banks. Reputation is enhanced by improving service quality and sharia compliance.

This study aimed to prove whether Sharia Compliance (SC) mediates the influence of Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR) on financial performance and maqashid sharia performance in Islamic Commercial Banks (ICBs) in Indonesia. A regression analytical method was employed based on Structural Equation Modeling with panel data in the annual report published by ICBs in Indonesia for the period 2014-2019. The results proved that SC mediated GCG and CSR on maqashid sharia performance positively while negatively mediated them on financial performance. At the same time, it did not mediate SSB on both financial performance and maqashid sharia performance. Based on these findings, policymakers should launch regulations on the disclosure of the dimensions GCG, SSB, CSR, and SC in the annual reports of ICBs. In practical implementation, ICBs should improve GCG, CSR, and SC as the performance of Islamic banking-supporting dimensions, and, evaluate SSB as the non-supporting one