Reconstruction of Consumer Protection Law in the Settlement of Islamic Banking Disputes

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

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 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.

A Framework for Islamic Social Banking

This journal discusses the role of the Indonesian Ulema Council (MUI) and the birth of Bank Muamalat Indonesia (BMI) as the first step in the establishment of Islamic banks in Indonesia. Bank Muamalat became a pioneer, followed by other Islamic banks. The focus is on the DSN-MUI fatwa which has a strategic role in shaping Islamic banking regulations and products, especially related to the collection and distribution of funds. This research uses descriptive qualitative methods with secondary data from related journals and books. The DSN-MUI fatwa is an important guideline for Islamic financial institutions in Indonesia. The analysis reveals that DSN-MUI plays a central role in dealing with the problems of Islamic banking practices. The research presents the background of the birth of DSN-MUI, the method of fatwa determination, and various fatwa products covering banking products, capital markets, Islamic insurance, export/import, and others. There are 116 fatwas that help form the legal basis of Islamic banking in Indonesia. This study underlines the importance of synchronization between fatwa as theory and practice in the field, especially in the collection and distribution of Islamic banking funds.

This study aims to investigate the impact of equity financing on non-performing financing (NPF) in Islamic commercial banks in Indonesia. To address this issue, we conducted a panel data regression analysis on 12 Islamic commercial banks in Indonesia from 2010 to 2022. The finding of this study suggests that an increase in equity financing is associated with a lower NPF ratio of Islamic banks. While it is theoretically argued that Islamic banks’ equity financing may be associated with higher risk, our empirical evidence indicates the opposite, suggesting an improved risk profile. Indonesia presents a favorable environment for the application of equity financing for Islamic banks because large Islamic banks in Indonesia are often government-owned, which can lead to“safe” loan portfolios and strong loan repayment. Indonesia is also considered a religious country, creating a suitable environment for mudarabah and musharakah financing. Our findings suggest that Islamic banks in Indonesia should consider offering more equity financing, particularly for low-risk projects, such as those initiated by the governments.

This research aims to examine the influence of financing risk, efficiency, and profitability on market share in Islamic banks. It is a population study that includes all 14 Islamic commercial banks in Indonesia. The data source for this research is secondary data, specifically financial reports of Islamic commercial banks obtained from the statistical reports of the financial services authority and the financial reports published by Islamic commercial banks in Indonesia. The data collection technique used in this study is documentation. The analysis method employed is multiple linear regression analysis using the eviews 10 application. The results of the research indicate that financing risk, efficiency, and profitability have an impact on the market share of Islamic commercial banks in Indonesia. This research implies that the study's findings contribute to the academic literature on Islamic banking and finance, providing a foundation for further research and discussions on the relationship between risk, efficiency, profitability, and market share. This research implies that the study's findings contribute to the academic literature on Islamic banking and finance, providing a foundation for further research and discussions on the relationship between risk, efficiency, profitability, and market share.

The development of Islamic banking in Indonesia today has experienced a rapid increase both in quantity and quality. As an institution that operates based on sharia principles, Islamic banks have different characteristics and assessments of financial performance from conventional banks. Islamicity Performance Index is one of the new concepts as a method that can be used to evaluate the performance of Islamic banks which are not only financially but also able to evaluate the principles of fairness and halalness of an Islamic banking.This study aims to reveal the application of sharia principles to the performance of Islamic Commercial Banks in Indonesia for the 2017-2020 period by using the Islamicity Performance Index. The ratios used are Profit Sharing Ratio, Zakat Performance Ratio, Equitable Distribution Ratio, Directors-Employees Welfare Ratio, Islamic Investment Vs Non-Islamic Investment, Islamic Income Vs Non-Islamic Income and the AAOIFI Index. The data used in this research is secondary data. The population of this study is all Islamic Commercial Banks in Indonesia for the 2017-2020 period, with a sample of five banks. Sampling was carried out using purposive sampling method. From the results of this study, it was found that the performance of Islamic banks can be said to be "unsatisfactory" because they have implemented profit sharing in accordance with Islamic rules and sharia, although the share of profit sharing is still lower than other financing. Islamic banks in issuing zakat are still not maximal, namely below 1%. In distribution to stakeholders, Islamic banks have issued qards and donations, providing employee salaries and net income which are still not felt by the benefits of the stakeholders. In the comparison of the average salary of directors with the average salary of employees, there is a difference in the average salary which is too high so that justice must be upheld in Islamic institutions to reduce the gap between directors and employees. Islamic Commercial Banks invest their funds in the halal sector with a ratio yield of 100% and already have 99% income from halal income. Shariah principles set by AAOIFI as a whole have been fulfilled by Sharia Commercial Banks in terms of promotion costs, risk-weighted assets, non-performing financing, interest-free income, profitability and distribution of zakat, although many of these points have not been maximized. The conclusion is that Islamic Commercial Banks in Indonesia still need to evaluate their performance for a better future.

Purpose – This study aims to analyze the non-performance financing determinant of Islamic Banking (IB) in Indonesia through spatial analysis. These determinants consist of macroeconomic and microeconomic variables Methodology – Samples in this research were selected using the purposive sampling technique with the criteria of Islamic banks registered in the Financial Services Authority (OJK) that released quarterly data reports and financial reports during 2015-2020. There are 7 Islamic banks that met the criteria. Findings – Results showed that the ROA, Inflation, GDP, and BI Rate simultaneously affected the NPF level, while FDR and CAR do not affect the NPF level of Islamic commercial banks. Meanwhile, partially FDR, BOPO, CAR, ROA, Inflation, GDP, and BI Rate affect the NPF level. In addition, the spatial analysis showed that based on the global distribution, there is a significant spatial effect through the geographical location between one bank and other. Originality – This research provides empirical data related to the determinants of non-performing financing, using the spatial analysis approach. Moreover, this research also uses the most updated data, Islamic and conventional banks during 2015-2020 Research limitations – Related to the samples of Islamic banks, this research only investigates those registered in OJK, not all Islamic banks in Indonesia.

This study aims to determine and analyze the effect of NOM sensitivity on inflation, CAR, NPF, FDR, OER, and company size (Size) on profitability in Islamic commercial banks in Indonesia from 2017 to 2022. The population in this study are all Islamic Banks in Indonesia. The sample used is purposive sampling. There are 7 Islamic Banks that are the sample in this research object. The method used is linear regression, where this method is used for hypothesis testing. In this study, the measurement of the coefficient of determination, the F significance test, and the t significance test were used. This measurement is done to determine how much influence between variables. The test results show that simultaneously NOM sensitivity on inflation, CAR, NPF, FDR, OER, effect on profitability. However, the t significance test shows only OER has a significant negative effect on the profitability of Islamic commercial banks in Indonesia. Meanwhile, NOM's sensitivity to inflation, CAR, NPF, and firm size (Size) have no significant effect on the profitability of Islamic Banks in Indonesia. The hypothesis regarding the Financing to Deposit Ratio (FDR) has a positive effect on the profitability of Islamic banks has not been proven.

This study aims to analyze whether there is an influence of Islamic Corporate Governance, Islamic Social Responsibility, Intellectual Capital, Sharia Bank Indonesia Certificates and Profit Sharing Levels on the Financial Performance of Islamic Commercial Banks in Indonesia for the 2016-2020 period. The type of data used is secondary data obtained from the financial reports of banks, BI and OJK through published institutional reports which were analyzed using multiple linear regression with the help of the E-Views 10 Program. The results of this study are the variables Islamic corporate governance, Islamic social responsibility, and Islamic corporate governance. intellectual capital, and Bank Indonesia Sharia Certificates partially have no effect on the Financial Performance of Islamic Commercial Banks in Indonesia in 2016-2020. while the Profit Sharing Variable has an effect on the Financial Performance of Islamic Commercial Banks in Indonesia in 2016-2020. Variables Islamic Corporate Governance, Islamic Social Responsibility, Intellectual Capital, Bank Indonesia Sharia Certificates and Profit Sharing Levels Simultaneously on the Financial Performance of Islamic Commercial Banks in Indonesia in 2016-2020.
 Keywords: Islamic Bank, Financial Performance, Quantitative

Sharia banking performance needs to be measured with an approach that is by sharia objectives in addition to using conventional approaches. An alternative to this approach is to use the Islamicity Performance Index. This study was conducted to obtain empirical evidence about the effect of Islamicity Performance Index components on the profitability of Islamic commercial banks in Indonesia which is proxied by Return on Assets (ROA). This research was conducted using seven samples of Islamic banks in Indonesia using the 2014-2018 quarterly financial reports. The sample selection method uses purposive sampling. The data used in this study are secondary data obtained from each Islamic bank's website. The method used in this research is panel data regression using the eviews 10 application program. The results of this research indicate that simultaneously the selected component of the Islamicity Performance Index has a significant effect on the profitability of Islamic Commercial Banks in Indonesia. Partially, the profit sharing ratio and zakat performing ratio have no significant effect on the profitability of Islamic Commercial Banks in Indonesia. Meanwhile, the equitable distribution ratio has a significant positive effect on the profitability of Islamic Commercial Banks in Indonesia.

Acts of fraud that occurred in several Islamic banks for sometimes are a proof that there is no guarantee of any institution that can be free from fraud cases. As an effort to reduce the level of fraud that occurs in Islamic banks, it is necessary to implement good corporate governance, good supervision, and implementation of an anti-fraud system that can be realized through the application of a whistleblowing system. This study aims to analyze the factors that influence fraud disclosure at Islamic Commercial Banks in Indonesia in 2014-2018. The objects of this research are seven Islamic Commercial Banks (BUS) registered with the Financial Services Authority (OJK) from the 2014-2018 period. The independent variables used in this study are Good Corporate Governance, whistleblowing system, and effective monitoring as measured by the ratio between the number of Independent Commissioners and the total number of Commissioners. The analysis method used in this research is panel data regression. The results of this study indicate that the independent variable application of the whistleblowing system and the value of Good Corporate Governance self-assessment has a positive effect on the disclosure of fraud in Islamic Commercial Banks, while the independent variable ineffective monitoring does not affect on the disclosure of fraud. This study has various limitations, one of which is limited data since it only focuses on Islamic commercial banks. The suggestions from this study are Islamic banks in Indonesia need to implement a whistleblowing system as an effort to prevent fraud, this is evidenced by the whistleblowing system variable influencing the disclosure of fraud in Islamic banks and it must improve the implementation of corporate governance to make it better. It can be seen from the composite value of the self-assessment results of the GCG BUS implementation. There are still many composite scores of 3 (quite good), even though the GCG variable has a positive and significant effect on fraud disclosure.

Islamic banking financing continues to experience better growth and provides great contributions in Indonesia. This industry must innovate products and improve its performance. This research paper aims to improve the Non-Performing Financing (NPF) and efficiency model of Islamic commercial banks in Indonesia while enhancing the quality of governance in the banking industry. In this study, researchers used Data Envelopment Analysis (DEA) to process overall technical efficiency (OTE) and panel regression to establish the causal relationship between independent and dependent variables, both partially and simultaneously. Researchers also analyzed the correlational association between NPF and the efficiency of Islamic banks in Indonesia. The data used in the study were obtained from Islamic commercial banks that were consistently published by Bank Indonesia and the Bank's database. Various micro or internal banking variables were used, and external variables, such as macro variables, were found to influence NPF. The study identified internal variables like CAR and FDR and external variables like GDP and inflation of Islamic banking in Indonesia that significantly impact NPF. Furthermore, the study results suggest that the FDR variable is among the significant variables with the highest significance value. It was also found that the "bad management" and "bad luck" hypotheses were not proven in Islamic banking in Indonesia.