Business Activities Of Banks Research Articles

Prinsip Kerahasiaan dan Prinsip Kehati-Hatian dalam Perlindungan Data Nasabah Bank Syariah

Islamic banks conduct their business activities in accordance with the provisions of the Sharia Banking Law, adhering to the principles of confidentiality and prudence, which are fundamental to gaining customer trust. The business activities of Islamic banks involve the collection of funds (funding) and financing (lending) based on customer trust. In addition to trusting the bank with their funds, customers also trust the bank with their sensitive personal data, which must be protected as bank confidentiality according to Article 41 of the Sharia Banking Law. This study employs a normative juridical method to examine the principles of confidentiality and prudence in the business activities of Islamic banks in protecting personal data. The study utilizes primary and secondary legal materials, reviewing literature from previous research and conducting interviews. The research findings indicate that a data breach caused by a ransomware attack experienced by BSI threatens the bank's reputation. BSI must implement data protection measures to restore customer trust through confidentiality agreements. BSI also standardizes all banking systems used. Customers affected by data breaches can file complaints with BSI and the Financial Services Authority (OJK) as the supervisory body, and the bank must protect customers as stipulated by the regulations.

Analisis Putusan Sengketa Ekonomi Syariah Pengadilan Pasaman Barat Tentang Putusan Arbitrase Bpsk Nomor 1409/ARB/BPSK-BB/IX/2016

The great interest of the public today regarding Islamic economics, in line with the increasingly massive number of people who become customers in all Islamic Banks, which is likely to have an impact on the emergence of disputes. As an example at this time is the matter of sharia economic disputes, initially a consumer protection complaint was made through BPSK Batu Bara Regency, which then the BPSK Decision was made a Legal Objection to the West Pasaman District Court with Decision Number 55/Pdt.Sus-BPSK/2016/PN.Psb by Bank Syariah Mandiri Pasaman Barat, and was appealed to the Supreme Court of the Republic of Indonesia with Decision Number 622 K/Pdt.Sus-BPSK/2017. The purpose of this study is to determine the extent to which the law enforcement of dispute resolution is in accordance with the provisions and its application seen from the contents of the decision number Case Number 622 K/Pdt.Sus-BPSK/2017; and Decision Number 55/Pdt.Sus-BPSK/2016/PN Psb. While the location of the Dispute is in West Pasaman, West Sumetara. The result of this research is that it turns out that there is still a limited understanding of the actors of Islamic banking business activities who do not fully understand the regulations.

Pertanggungjawaban Tindak Pidana Perbankan Perspektif Hukum Pidana dan Undang-Undang Perbankan

Criminal acts in the banking sector are defined as all types of unlawful acts related to activities in carrying out bank business activities and intersect with the provisions of laws and regulations containing special criminal law and general criminal law. The purpose of this study is to determine the Accountability for Banking Crimes from the Perspective of Criminal Law and Banking Law. Using the Normative Juridical method.The practice or mode of violation of the bank procedure system carried out by bank employees and resulting in banking crimes is carried out with the following characteristics: Banking crimes are always followed by violations of the bank procedure system.In the event of a violation of the bank procedure system and resulting in a crime in the banking sector, the bank as a corporation cannot be held criminally responsible for the crime committed by bank employees because of banking laws and regulations, especially Article 49 of Law No. 10 of 1998 limits the perpetrators to individuals only, namely Directors, Commissioners or Bank Employees. In the event that the impact of the act is detrimental to the bank's customers concerned, then the responsibility that can be demanded of the bank as a corporation is civil responsibility.

The Benefits of Revenue Diversification on Bank Profitability and Stability: An Empirical Study on Indonesian Commercial Banks

Traditional business activities of commercial banks in Indonesia experienced a shift as indicated by the percentage of non- interest income per interest income from 26.1% in 2014 to 51.3% in 2020. The study aims to determine revenue diversification, internal determinants, and macroeconomic determinants in affecting profitability, stability, while also observing the role of bank capitalization. This study analyze sample of Conventional Commercial Banks in Indonesia from 2013 to 2020, using dynamic panel data GMM. Research proves that direct effect of non-interest income on revenue diversification has a significant positive effect on ROA and risk adjusted ROA, as well as a negative effect on NPL; as the indirect effect of only significantly affects RAROA. However, there are contradictions in the results of research using the interaction variable of revenue diversification with bank capitalization. The empirical test results also prove the role of the control variables cost income ratio, deposit to total asset, bank capital, loan to total asset, bank size, inflation rate, and GDP growth in affecting bank performance and stability. This study proves the specific benefit of revenue diversification for commercial banks in Indonesia as a whole, although it does not apply to BUKU 1 banks.

FINANCING RISK MANAGEMENT BASED ON PROFIT SHARING SHARIA RURAL BANK (STUDY ON BPRS HIK PARAHYANGAN)

The banking industry in its operations is full of risks that can disrupt the survival of banks, including Sharia Rural Bank (BPRS). The characteristics of BPRS products and services require identification, measurement, monitoring and risk control functions that are in accordance with sharia banking business activities. The composition of profit sharing based financing at BPRS is only 14%, the level of profitability with ROA and ROE starting in 2014 has decreased. On the other hand, the non-performing financing (NPF) ratio continues to increase. Meanwhile, the opportunity to increase profit sharing-based financing is very high because the number of MSMEs is very large.The number of BPRS in Indonesia until 2023 is 173, of which there are 80 BPRS in the island of Java. Secondary data collection is carried out through annual reports. BPRS HIK Parahyangan was chosen as the research object. Analysis of the implementation of risk management follows the stages of the risk management process. BPRS HIK Parahyangan's understanding of risk management and its implementation.The research results show the fact that in the year period studied, namely 2020-2022, BPRS HIK Parahyangan has implemented risk management and risk mitigation well. The risk management process is understood and implemented by BPRS HIK Parahyangan, always applying the principle of prudence in providing financing and focusing on clients who have a proven track record. So that BPRS HIK Parahyangan can maintain healthy financing quality with a controlled problem financing ratio.

Operational efficiency in the presence of undesirable byproducts: an analysis of Indian banking sector under traditional and market-based banking framework

PurposeIn the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018 considering Capital Gain and Gain from Forex Market (as desirable outputs) and Slippage (as undesirable byproducts) simultaneously, along with Advances – a desirable output considered in the traditional banking performance assessment literature. This enables to have an assessment of performance (as captured by the measured efficiency scores) of Indian Banks following an alternative viewpoint about the banking activities. The authors also explain such efficiency scores in terms of bank-specific factors, banking industry competition scenario and interest rate channel.Design/methodology/approachUsing data envelopment analysis (DEA) method, the authors estimate six alternatives but interlinked operational efficiency scores (TES) of the Indian domestic commercial banks. In the second stage, they explain such TES in terms of bank-specific factors, banking industry competition scenario and interest rate channel.FindingsThe authors observe that the private sector banks as a group outperform those under public ownership. Moreover, although the private sector banks could maintain somewhat consistency in their operational efficiency performance over the sample period, public sector banks clearly show a declining tendency. The second stage econometric estimation results show that the priority sector lending has a negative effect on efficiency. Interestingly, the authors get varying results for the relationship between maturity and efficiency score depending on banks’ strategies on stressed assets management. Furthermore, the analyses result that banks are not so efficient in managing relatively larger-volume loans. It is also observed that banks’ efficiency positively depends on the Credit-to-Deposit (CD) ratio. It is found that the overall operational efficiency of the banks to manage their credit risk portfolio improves with a reduction in the lending rate (LR). However, the interaction of lending activities and capital market shows that with the increase in LR, corporate borrowers may switch to capital market to explore for desired funds, which may induce the banking sector to investment in capital markets and create a positive market sentiment.Originality/valueLiterature, although scanty, is there dealing stressed assets of a bank as some undesirable byproducts of its operational and business activities. However, such literature mostly done within the traditional framework of banking business activities and modern market-based business activities are almost absent in the literature. The authors have done it in the present study.

Manajemen Risiko Reputasi Perbankan Syariah

Inherent risk is the risk attached to the business activities of Islamic banks, whether quantifiable or not, which has the potential to affect the financial position of the bank. Risk management applications, especially the risk of reputation for Islamic banks, either individually or for banks by way of confirmation by The children's industry does not include the active supervision of the board of commissioners, the board, and the DPS, policies, methods, and determination of limits, as well as methods of identification, measurement, control, and risk management and risk SIM. This risk arose, among others, due to the presence of media reports and rumors about banks having a negative attitude and the existence of an inefficient bank communication strategy. A negative announcement to one Islamic bank would tarnish the good name of another Islamic bank, even though other Islamic banks did not participate in this responsible action. The best reputation risk management method is to implement a predictive or preventive action program and a reputation maintenance program. Risk A good name is an abstract risk and is an intangible asset for the industry. Prosecution of reputational risks should be in a preventive way because the cost of handling this risk is very large and can eventually disrupt and kill the industry.

Evaluasi Transformasi Good Corporate Governance pada Bank Aceh Syariah

The Islamic banking sector has experienced significant development, offering various Sharia-compliant products such as Islamic savings, Sharia-based accounts, and Sharia deposits, emphasizing the need for a robust implementation of good corporate governance. This study aims to differentiate the disparities in applying good corporate governance at Bank Aceh Syariah before and after its conversion. This qualitative descriptive research focuses on Good Corporate Governance at Bank Aceh Syariah, utilizing secondary data such as the company's annual reports from the periods 2014-2015 (conventional) and 2018-2022 (Sharia). The results of the GCG self-assessment at Bank Aceh Syariah for the years 2014-2015 in the conventional operational system had an average GCG score of 1.86, which was better compared to the period of 2018-2022 in the Sharia operational system with an average GCG score of 1.90. This indicates that the implementation of Good Corporate Governance at Bank Aceh during conventional operations was superior compared to operations in the Sharia system. Post-conversion to the Sharia system, there is an additional organizational structure in the implementation of Good Corporate Governance with the establishment of a Sharia Supervisory Board, responsible for overseeing the bank's business activities aligned with the Fatwa of the National Sharia Council.

Bahasa Indonesia

Risk management is a series of procedures and methodologies used to identify, measure, monitor and control risks arising from bank business activities. However, however, risk remains a barrier to an activity or activities that we plan, because risk is also the possibility of causing unexpected or unwanted losses. This research discusses operational risk and how to implement operational risk management at the head office of BCA Syariah. The results of the discussion show that operational risk is caused by inadequate or non-functioning internal processes, human errors, system failures or external events that have an impact on operational activities. The implementation of operational risk management at BCA Syariah seeks to raise risk awareness for each work unit at BCA Syariah in order to foster a strong and risk-aware culture to mitigate potential risks.

HUKUM PERBANKAN SYARIAH DI INDONESIA: Optimalisasi Fungsi Berbasis Pengendalian Risiko Pada Perbankan Syariah

After Law Number 21 of 2008, the government attempted to increase the resilience of sharia banking to potential risks that could occur at any time. The systemic impact resulting from failure to control risk is the main reason for implementing strict regulations in the banking industry. the impact caused by the failure to control risks, and the implementation of strict regulations on the banking industry, and looking at the government's actions in forming regulatory rules regarding sharia banking. Considering this research, we look at the rules made by the government. Why is the main reason for implementing strict regulations in the banking industry. The aim of this research is to determine the impact of failure to control risk by sharia banking, and the implementation of strict regulations in the banking industry. This research uses a descriptive-qualitative approach, with a type of library research, namely a type of research by collecting scientific papers as research objects or collecting data in the nature of a library study. The research results show that the Government needs to improve the regulatory and supervisory function of sharia banking in Indonesia. To optimize the function of sharia banking, the government must be able to control the risks that always frame sharia banking business activities.

Liability of the Directors Cause Not Implementing the Principle of Prudence in Distributing Mudharabah

Directors is the organ that represents the sharia bank in carrying out sharia banking business activities, one of which is the distribution of mudharabah financing. Before distributing mudharabah financing to prospective customers who receive the facility, in accordance with the provisions of Article 2 and Article 29 verse (2) of Law Number 10 of 1998 jo. Article 2 and Article 35 verse (1) of Law Number 21 of 2008, Directors representing sharia banks, are obliged to apply the principle of prudence.This research discusses the obligation of Directors representing sharia bank to apply the principle of prudence before distributing mudharabah financing to prospective customers who receive the facility. In this regard, this research is focused on examining the liability of Directors cause not implementing the principle of prudence in distributing mudharabah financing to customers who receive facilities, which resulted in a decline in the health level of sharia bank.This research is prescriptive, using normative juridical methods, with using a statutory approach, and a conceptual approach. The type of data used is secondary data.The results of this research conclude that the liability of Directors for failure to apply the principle of prudence in distributing mudharabah financing to customers who receive facilities which results in a decline in the health level of sharia bank is that sanctions can be applied to Directors in the realm of Civil Law, the application of which does not reduce the application of sanctions in the realm of Penal Law.Key Words: Liability, Director, Prudence

Dampak Kepatuhan Syariah terhadap Kinerja Keuangan Bank Syariah: Studi Kasus pada Struktur Pengawasan dan Manajemen Risiko

Shariah compliance is important for Islamic banks because it is one of the factors that determines their financial performance. This study aims to analyze the impact of shariah compliance on the financial performance of Islamic banks, with a case study on the supervisory structure and risk management. This study uses a case study method with three Islamic banks in Indonesia as the object of study. The data used in this study is secondary data obtained from the annual reports of these Islamic banks. The results of the study show that shariah compliance has a positive impact on the financial performance of Islamic banks. This impact can be seen from several aspects, including: Profitability: Islamic banks with high shariah compliance have better profitability than those with low shariah compliance, Liquidity: Islamic banks with high shariah compliance have better liquidity than those with low shariah compliance, Risk: Islamic banks with high shariah compliance have lower risk than those with low shariah compliance. Shariah compliance also has a positive impact on the supervisory structure and risk management of Islamic banks. This impact can be seen from several things, including: Supervisory structure: Shariah compliance can enhance the role of the Shari'ah Supervisory Board (SSB) in overseeing the business activities of Islamic banks, Risk management: Shariah compliance can enhance the role of the risk unit in managing risks related to shariah compliance. Based on the results of this study, it can be concluded that shariah compliance is an important factor that determines the financial performance of Islamic banks. Strong supervisory and risk management structures can help Islamic banks to improve shariah compliance and, ultimately, improve their financial performance.

The Impact of Financial Ratios on Bank Performance Before and During COVID-19: Evidence from Bank Business Activities Category 3 and 4 in Indonesia

Keeping in mind the year 2020 until the end of 2022, the COVID-19 pandemic and its economic turmoil shocked banking sectors. The COVID-19 pandemic has caused significant disruptions to economies across the globe, and Indonesia is no exception. As a result, the banking sector in Indonesia has been particularly affected. This research aims to investigate the banking situation in Indonesia during COVID-19 and how it has affected bank profitability (ROA). Profitability is a ratio that measures the company's ability to generate profits. Return on Assets (ROA) is one of the profitability ratios. Return on assets (ROA) is a commonly used financial ratio that measures a company's profitability. For this research, the dependent variable is return on asset to measure bank profitability. The independent variables are non-performing loan, net interest margin, operating expense to operating income, loan-to-deposit ratio, and capital adequacy ratio. This research also uses control variables. The control variables in this research are bank size, GDP growth, inflation, and interest rates. Since this research also aims to investigate the effect of the COVID-19 pandemic on banks' profitability. The covid-19 pandemic is also an independent variable used as a dummy. The sample used in this research are commercial banks business activity category 3 and 4. The methodology of this research utilises panel data and a two-step system GMM. Thus, this research has discovered that COVID-19 affected ROA negatively and significantly. Additionally, the financial ratios that affected ROA are NIM and OEOI.

Legal Institutions Facilitating Institutions as Determinants of Banking Operational Policy Direction

This study aims to examine the role of bank facilitating institutions and their functions in relation to the policy of banking business activities in Indonesia in carrying out the management system and work system of the bank. In this study the authors used explanatory qualitative research methods, data were obtained from official sources related to information regarding the roles and functions of facilitating institutions with Islamic banking financial institutions as well as from book reference sources and other relevant references. The author finds that overall the bank facilitator institution plays an important role as an institution that supports the running of Islamic bank activities in a proportional and orderly manner. And the authors found that according to LPS information, so far there have been no Islamic banks, especially those that have failed banks or banks whose existence needs to be saved. The essence of the role and function of the facilitating institution is very closely related to financial institutions. And each institution has different authorities, functions and duties in supervising, overseeing, protecting, resolving problems, issuing fatwas related to bank products and regulations regarding work systems. The main function of the bank facilitating institution is to support bank business activities so that they run effectively and in a sound and orderly manner.

Implementation of Risk Management BSI Griya Hasanah product at bank "X"

Financing is the main activity of Islamic banks in channeling funds to the community. One of the financing products is Home Ownership Loans (KPR). Risk management is a series of procedures and methodologies that can be used to identify, measure, monitor and control risks arising from the bank's business activities. The research method used is a qualitative method with the formulation of descriptive problems to obtain data by means of interviews and literature studies. Results The application of risk management in home ownership financing or Griya Hasanah is in accordance with Bank Indonesia regulations Article 3 of Bank Indonesia Regulation No: 13/23 / PBI / 2011 that the implementation of risk management includes at least (a) active supervision of the board of commissioners, directors, and sharia supervisory board (b) adequacy of policies, procedures, and determination of risk management limits and (c) adequacy of the process of identifying, measuring, monitoring, and controlling risks and risk management information systems (d) a comprehensive internal control system. The benefits for the bank are the progress and health of the bank and the benefits for customers, namely the ease of owning a house and applying for Griya Hasanah product financing.

HARMONIZATION OF ENVIRONMENTAL LEGAL POLICIES WITH BANKING REGULATION IN INDONESIA

The banking industry plays a crucial and strategic part in efforts to manage and safeguard and take care of the earth. The bank's performance in environmental protection can be achieved by involving the purpose of preserving the environment of life in its business activities, one of which is through the provision of environmentally sound loans. These financial institutions must put forward the sustainable development goals. The current problem is that there is no regulatory firmness that specifically regulates the synergy between environmental law and banking law in a standardization of compliance of banking business activities, especially in the arrangement of environmentally sound lending and borrowing agreements. Therefore, researchers conduct research with the normative legal approach method by collecting primary, secondary and tertiary data using the rules and regulations in laws, books, journals, both the internet. This paper aims to examine the harmonization between environmental law in banking activities, suggest it to the Indonesian Financial Services Authority as well a concept of harmonization and synchronization of banking and environmental regulations by applying sustainable finance principles in a regulation internal banking credit policy.

Quo Vadis : Kebijakan Politik Hukum Bank Syari’ah Pasca Undang-Undang Nomor 21 Tahun 2008 Tentang Perbankan Syariah

The existence of legal politics in Islamic banks comprises the most common method for creating and enforcing regulations that can illustrate the kind and course in which the law will be constructed and implemented on the grounds. This is because the definition of legal politics itself is the official direction that the state uses as a basis to create and implement laws to achieve state goals. There are two dimensions of legal politics to consider when studying regulation: the basic policy dimension of why regulation is promulgated and the policy dimension of enactment. Regulations must be able to provide a basis and respond to the absence of the necessary supporting institutions for the Sharia banking industry, which serves as a form of improvement and implementation of the process of transforming the system of Islamic law into an integral part of the national legal system and laws regarding the operational system of banking business activities. The participation of Islamic banks in Indonesia is an important factor in national growth. This study employs an analytical-descriptive approach. It is a study that uses the statutory approach and the conceptual approach to define the scope and assess its existence. The formulation problem of this study is Quo Vadis: The Legal Politics of Islamic Banks under Post-Law Number 21 of 2008 on Sharia Banking. The purpose of this study is to examine the role of the state in regulating the development of Sharia banking in the context of the Plan to Create a Law on Sharia Economics.

The Effect of the Digitalization System on Customer Service Performance in the Banking Business during Post-Pandemic

This research was conducted to find out how the impact of the banking digitalization system on customer service performance in banking business activities. The data in this study used primary data collected by distributing questionnaires, interviews and observations to all Bank Negara Indonesia 46 customer service Palembang areas. The population used is the customer service of Bank Negara Indonesia 46 Palembang area, namely as many as 54 people and the sample taken from this study was taken using the saturated sampling method, namely as many as 54 people. Data analysis was carried out using the validity test, reliability test, simple linear regression test and hypothesis testing using the t test technique. Result show that the impact of digitalization has a positive influence on customer service performance , so that it can take over some of the roles and tasks of customer service) because the digital technology services offered have the features needed for customers to transact simple services in the banking sector without having to go through the customer.

Juridical Review of Law Enforcement against Criminal Acts in the Banking Sector

This study aims to analyze the juridical review of law enforcement against banking crimes. The research used a normative juridical method with a peruandang-invitation approach. The results of the study indicate that Banking Crime is a behavior, either in the form of commissioning or omission, using banking products as a means of conduct for the perpetrators or banking products as behavioral targets. The perpetrator has been determined as a criminal offense by law. Banking crime is a crime that fulfills the elements as referred to in Article 46 to Article 50A of the Banking Law or Article 59 to Article 66 of the Sharia Banking Law. The scope of banking crimes contained in the Banking Law and the Sharia Banking Act are: 1) Criminal acts related to licensing; 2) Criminal acts relating to bank secrecy; 3) Criminal acts related to bank supervision; 4) Criminal acts related to bank business activities; 5) Criminal acts related to affiliated parties; 6) Criminal acts relating to shareholders; 7) Criminal acts related to compliance with the provisions.

Perlindungan Hukum Terhadap Nasabah Setelah Konversi Dari Bank Konvensional Menjadi Bank Syariah Indonesia (Bsi) (Studi Penelitian Pada Bank Syariah Indonesia di Kabupaten Pidie)

Conversion of Conventional Banks to Indonesian Sharia Banks is carried out in accordance with the prevailing laws and regulations in Indonesia. This research was conducted at Bank Syariah Indonesia Pidie District Branch. Customer protection after the conversion of Conventional Banks to Indonesian Islamic Banks is very important. Aceh is a Muslim-majority area, making it easier to implement the Islamic banking system, especially after the birth of Aceh Qanun Number 11 of 2018 concerning Islamic Financial Institutions. This legal research aims to identify and explain the regulation of conversion of conventional banks to Bank Syariah Indonesia , especially in Pidie District, Aceh. Then to find out and explain legal protection for customers after conversion from conventional banks to Bank Syariah Indonesia . This research is an empirical research with the type of qualitative research and the nature of descriptive research with data sources, namely primary data obtained by conducting field research (filed research), and secondary data obtained by conducting library research. The results of this study indicate that the Regulations concerning the Conversion of Conventional Banks to Indonesian Sharia Banks are regulated in Law Number 21 of 2008 concerning Sharia Banking, POJK Number 64/POJK.03/2016 concerning Changes in Business Activities of Conventional Banks to Sharia Banks, Aceh Qanun Number 11 of 2018 concerning Islamic Financial Institutions, besides that, various related laws are also regulated, including; OJK Law and Bank Indonesia Law. The legal protection provided to customers of Bank Syariah Indonesia , the Pidie Regency Branch is still weak, in the sense that there are still many complaints from the public regarding its services, for example the system often has errors that prevent customers from transacting. However, the Indonesian Sharia Bank of Pidie Regency has made maximum efforts in providing protection to its customers both in terms of trust, fund management, and also distributing education to its customers. It is recommended for the Government to socialize the conversion of Conventional Banks to Bank Syariah Indonesia . Customer protection must be provided from the start, namely by providing informative information on the existence of Bank Syariah Indonesia