Banking World Research Articles

DIGITAL CONSTITUTIONALISM ERA IN THE DEVELOPMENT OF BANKING LAW IN INDONESIA

Digitalisation has changed, bringing the world in an almost borderless direction, and impacting various fields. Banking law in particular has been disrupted by the rapid development of digitalisation, as well as shifting paradigms of thinking across the banking world. As a result of the digital economy era, conventional banking services have been forced to adapt to the development of the concept of digital constitutionalism. The digital economy era must provide better banking services to guarantee the protection of citizens’ constitutional rights, especially related to the use of technology in banking services. This concept of the digital economy must be able to improve the quality of banking services in terms of ease and speed of access, efficiency, effectiveness, and optimal management of risk. Thus, it is expected that the development of the era of digital constitutionalism in banking law in Indonesia can provide a more optimal guarantee of protection of future constitutional rights protection for its citizens. This study describes the transitional process of the digital constitutionalism era in the development of banking law in Indonesia as a factual condition by using normative juridical research methods and library approaches, as well as comparative approaches. The study finds that the development of the digital constitutionalism era in banking law in Indonesia has progressed rapidly. This progress has benefitted users of banking services, but it also has led to a residual deviant behaviour due to the ease of access to technology.

Green banking and sustainability – a review

PurposeThe purpose of this article is to study green banking practices, its methods of adoption and importance of practicing green banking. This study also includes the role and contribution of banks in environmental sustainability and UN Sustainable Development Goals.Design/methodology/approachThe current research paper is conceptual in nature, based on a thorough literature review, websites of financial institutions and literature evaluations among other sources. This study has been supplemented by a variety of research journal articles. The websites of many banks including SBI (State Bank of India) and MayBank (Malaysia) were used and reviewed to know about various green banking practices both nationally and internationally and their contribution toward sustainability.FindingsThe devastating effects of recent flooding, droughts and extreme temperatures that several people all over the world have experienced compelled everyone to begin thinking about global warming and its consequences, and to do everything that can be done to address this problem. Governments, businesses and individuals all play a part in preventing global warming and creating a more sustainable world. People have to deal with financial institutions, particularly banks, which play a vital role in this environment by assisting in the development of a robust and successful low-carbon economics. They should make more use of environmental data when extending credit and making investment decisions. The project will assist them in proactively improving their environmental performance while also adding long-term value to their company. Businesses having a bigger carbon output may be viewed as riskier in the future, and banks may shy away from funding such businesses in favor of innovative technology solutions that absorb or reduce carbon emissions. As a result, green banking is the order of the day, a source for sustainable development and it will undoubtedly benefit banks, industries as well as the environment at large.Research limitations/implicationsThe theoretical implications can be summed in the following points: (1) there is no universally accepted framework for green or sustainable banking so far. However, green banking practices are at different stages of development across countries. As per the case of India, green banking practices are at a development phase in India, and green processes have a significant impact on sustainable development. (2) The study is one of the first of its kind in the academic literature as it links green banking practices with sustainability besides discussing green banking practices of the top public sector Bank of India and top commercial bank of Malaysia. Despite the significant contributions made by this study, many disadvantages should be addressed for future research. The present work was chosen for comfort, it was restricted to green banking practices of two banks only, which limits conclusion and interpretation of outcome to some extent Future research can be conducted by a comparative study with the top green banks or with the cleanest country of the world or green banking practices by those banks toward sustainability in that country can also be a good area for researchPractical implicationsManagerial implication: The study is extremely helpful to the banking industry in determining the scope of green banking initiatives in sustainable development. This study is a prime study in India to interrelate banking industry towards sustainability and two UN SDGs besides green banking practices of banks. This paper has noted the areas where the banks can make progress for the greener, sustainable economics. It has also aided the banking industry in identifying areas for development so that it may focus on improving social satisfaction and satisfaction of stakeholders across its operating areas. The study is also very helpful for banks to comprehend how vital these green initiatives, especially green processes, are to improve sustainability.Social implicationsThe study will serve as a gauge for banking actions toward greener nations and a greener world since these are the efforts toward Carbon Free World, Efforts for controlling global warming, efforts for the greener planet in general which undoubtedly is a significant long-term service to society a reason for better climate and better tomorrow.Originality/valueThis paper identifies the need for green banking in sustainability. This article also summarizes the notion of green banking besides outlining some methods and analyzing green banking initiative by SBI (State bank of India) of India, MayBank of Malaysia & UNSDG .

Risks Due to Pandemic and Legal Protection for Customers

The occurrence of a pandemic at the beginning of 2019 until now has had a very large loss impact, almost all over the world experiencing an economic decline, even high inflation. This condition is a blow, which requires all parties to be able to find their own way out. In the banking world, the impact of the pandemic has caused instability in interest rates and business liquidity, causing public panic, both as debtors and creditors. Therefore, this research was conducted to reveal the impact of the pandemic on the banking world in Indonesia and seek legal protection as a solution for customers. To answer the research phenomenon, a scientific method was established, namely the qualitative method. The object of research is the National Bank of Indonesia with primary and secondary data sources. Primary data was obtained through interviews, while secondary data was obtained by reviewing banking law literature. The results of the study revealed that the occurrence of the pandemic did not dampen the bank to continue to guarantee the rights of its customers. Although on the other hand, the impact of the pandemic is very significant for the banking industry, this is clearly seen in the declining number of banking activities.

MEASURING CUSTOMER TRUST THROUGH DIGITAL TRANSFORMATION OF BANKING AS A COMPETITIVE ADVANTAGE

The financial and banking industry has implemented digitalization as a marketing weapon and realized industry 4.0. The purpose of this study was to determine the extent of the implementation of banking digitalization in the expansion areas. The population of this research is the customers registered at Bank Sinar Mas Rantauprapat in 2021 as many as 1445 people. Research using multivariate data should use the number of samples in the survey as many as 200 samples with purposive sampling technique. Smart PLS data analysis through the stages of convergent validity, discriminant, composite reliability, Cronbach's alpha and R-square. The results show that customer trust is very important in the business practice of the financial or banking industry, this is because customer trust is the most effective weapon in the banking service industry based on digital transformation as banking services will be able to increase customer satisfaction and even loyalty and attract new customers. Digital transformation in the banking world is an important phenomenon as access to the realization of customer-company interactions through information and communication technology, making it easier for companies to win the competition and become a competitive advantage for banking.

Adopsi Kode Etik Internasional AAOIFI bagi Akuntan Islam Indonesia

Various accounting scandals, financial cases and unethical practices violating laws and standards still occur today in Indonesia. Indonesia's code of ethics for Islamic accounting needs to be formulated in line with the development of sharia accounting practices that are widespread in the world of Islamic banking and Indonesia's dynamic sharia economy with high complexity. Indonesia's Islamic sharia accounting code of ethics needs to adopt a code of ethics compiled by international experts in the global Islamic accountant organization AAOIFI as a drafting reference. The research uses an interactive qualitative type that advances interview techniques to collect data from scholars. The primary source of research uses the code of ethics issued by AAOIFI and through interviews with Islamic accounting expert from IAI and ulama (scholars) in the Indonesian Ulema Council (MUI). The principles of the AAOIFI code of ethics include taqwa, tawakal, amanah, sidiq. quwwah and tawasi bil haq. The adoption of a code of ethics for Indonesian Islamic accountants is an important matter of duplicating the virtues in modern applicants, namely applying Islamic law in order to provide solutions and guidance in contemporary modern problems. The preparation of a code of ethics for Indonesian Islamic accountants requires the Islamic accountant profession in the complex modern world needs to pay attention to urf am and urf khas so that it will give great benefits because until now the Indonesian Islamic accountant profession does not have a professional code of ethics.
 Keywords: Islamic Accounting, Code of Ethics, Accountants

BANKERS’ ATTITUDES TO THE LEGAL POSITION OF BANK INTEREST: NEW INSIGHTS FOR THE DEVELOPMENT OF FIQH WASATIYAH MALIYAH

This study explains the phenomena of certain Indonesian bankers’ fear regarding bank interest. This anxiety led bankers both of conventional and sharia to extreme attitudes such as the decision of employees to stop working or move to work in Islamic banks, assuming that his position is correct and considers conventional bankers to be illegitimate work. These two understandings and attitudes underlie the authors interested in analyzing and discovering how to build a tolerant and moderate fiqh concept in the world of Islamic banking and finance. This research uses a type of qualitative-descriptive research, with a prophetic approach and fiqh tolerance approach or fiqh wasatiyah in the field of Islamic banking and finance. The theory of maqasid al-sharia al-iqtishadiyyah is used as the ground theory of this paper. The results of this research show that: first, the anxiety of conventional bank employees is caused by factor of understanding and interpretation that bank that uses the interest system is usury system and usury is illegal. Second, that understanding and attitude of extremism can be seen as stopping work suddenly, disappearing without any reason, changing how to dress, easily forbidding something, and finally stop working in conventional banks

Money Market Mechanism Based On Sharia Principles

The rapid development of economic activity followed by the development of financial institutions (banks) both conventional and using Islamic principles, in the banking world often use money market facilities in its operations, because in certain circumstances the bank may experience excess or lack of liquidity in the short term which is less than one year. The only money market that is allowed is the money market that does not use the interest system, this is to avoid riba nasi'ah because the loss (danger) of the interest is greater than the profit (mashlahah). In addition, because Islam prohibits the sale and purchase of money as a commodity or speculation. The National Sharia council should develop the concept of policies and procedures for money market activities in more detail, so that the parties to the transaction can comply with the principles of established Sharia norms. However, the fatwa of the National Sharia Council No:37/DSN-MUI/X/2002 can be used as a solution for parties (banks) that conduct transactions in the money market by providing alternative contracts mudharabah (muqaradhah), Musharakah, Qard, Wadiah, and al-Sharf.

The Importance of Improving Service Quality for Customer Satisfaction: A Case Study of Bank Muamalat in Bogor City

The development of the banking world in Indonesia is marked by one of them is the establishment of Islamic banks. Islamic banks are banks that operate by not relying on bank interest. With a population that is 80% Muslim, Islamic banks are predicted to have very good prospects in the future. However, the current fact is that there are still many customer complaints related to the quality of service at Islamic banks. This study aims to answer the questions on how the service quality of Bank Muamalat Bogor and how the customer satisfaction is perceived by customers of Bank Muamalat Bogor. The data collection technique was carried out by participant observation and semi-structured interviews since this type of interview is more flexible in which questions can be adapted and changed depending on the answers of the informants. For this study, researchers interviewed 15 bank customers. The results of this study indicate that of the 5 dimensions of service quality, 3 of them received negative responses from customers, namely reliability, assurance and tangible. However, apart from the negative responses, Bank Muamalat with a sharia basis also received a positive assessment for the dimensions of responsiveness and empathy in which customers are satisfied with the services provided by friendly and patient staff who have a high sense of empathy. However, the friendliness and kindness of the staff only is not sufficient. To be able to compete with other commercial banks, Bank Muamalat must be able to improve the quality of its services from all the 5 dimensions of service quality

Settlement of Default in Sharia Mortgage with Murabahah Contract

Sharia financing products have developed in the banking world, in addition to more banking institutions that offer products in Islam such as murabahah contracts. Murabahah contract is a contract of sale and purchase of goods between two parties whose price and profit are mutually agreed upon. In the process of Sharia Mortgage (KPR Syariah) at BTN (Bank Tabungan Negara) Syariah Probolinggo, many use murabahah contracts and various problems or problems that arise and need to be resolved. One of the problems that often arise in the implementation of home ownership loans is the default. The purpose of this study is to explain the form of default in the implementation of home ownership loans, the factors that cause default, and the settlement of defaults in the implementation of home ownership loans at BTN Syariah Probolinggo. The results of the study indicate that the form of default in the implementation of Sharia mortgages at BTN Syariah Probolinggo Branch is that the debtor is late in carrying out its obligations as previously agreed.

Hubungan Komunikasi Interpersonal Customer Service Dengan Service Quality Bank Mandiri Pasar Jombang

We are currently in the era of cutting-edge technology, the function of the banking industry to promote and maintain the economy of a country is very important. The services provided by Customer Service officers to customers are very closely related to communication, especially interpersonal communication. In the banking world, it is also inseparable from the existence of public relations, the activities of external public relations are effective, persuasive and informative communication for the external community of the company. Some customers think that inadequate service will lead to customer disappointment with the assistance from the Bank. The problem in this research is whether there is a relationship between Cust. Service interpersonal communications & customer satisfactions, this research points to decide whether there is a relationship between Customer Service interpersonal communication & Service Quality. Researchers use Interpersonal Communication theory according to De Vito and Service Quality Theory according to Kotler. This research uses a quantitative method with the type of explanatory research, the population in this research is a customer of Bank Mandiri Pasar Jombang totaling 2500 people, with a research sample of 97 people using the Slovin formula. The results of this research, interpersonal communication of Customer Service plays an important role in achieving customer satisfaction. The correlation test results show a positive value indicating the direction of the relationship, while the correlation value or the relationship between Customer Service interpersonal communication & customer satisfaction at Bank Mandiri Pasar Jombang has a very strong relationship.

Assessment of Bank's Financial Health Using Risk Profile, Good Corporate Governance, Earnings, Capital (RGEC) Analysis

This current situation in the banking world in Indonesia is experiencing increasingly fierce competition, increasingly difficult and open economic conditions. This study aims to determine the financial health of General Bank in Indonesia 2016–2020 using the RGEC method. This study uses quantified qualitative research method. The data analysis technique used is descriptive analysis. The results show in terms of the Risk Profile that the NPL ratio in the 2016–2019 period is categorized as "Healthy", and in the 2020 period it is categorized as "Sufficiently Healthy". Furthermore, the LDR ratio in the 2016–2019 period is categorized as "Sufficiently Healthy", and in the 2020 period it is categorized as "Healthy". From the GCG aspect, it shows that in the 2016–2020 period it is categorized as "Healthy". In terms of earnings, the ROA ratio in the 2016–2019 period is categorized as "Very Healthy", and ROA in the 2020 period is categorized as "Healthy". Furthermore, the NIM ratio in the 2016–2020 period is categorized as "Very Healthy". From a capital perspective, the CAR ratio in the 2016–2020 period is categorized as "Very Healthy". In terms of RGEC method, overall BRI, BNI, and BMRI banks in the 2016–2019 period was categorized as "Very Healthy", while in the 2020 period they were categorized as "Healthy".

Pengaruh CAR dan FDR Terhadap NPF Pada Bank Syariah yang Terdaftar Di OJK Periode 2018-2020

The economy in a country cannot be removed from the world of finance and banking. One of the problems felt by Islamic banking is non-performing financing (NPF). Furthermore, the aim of this study aims is that to determine the effect of CAR and FDR on non-performing financing (NPF). The study used a quantitative approach to Islamic commercial banks which are in Indonesia listed at the OJK. Meanwhile, the samples in this study were 3 Islamic commercial banks. The data used was quarterly financial report for the period of 2018-2020. In addition, the data processing used was SPSS version 26. The results of the study show that CAR and FDR simultaneously have no significant effect on NPF.

Analisis Penerapan Tata Kelola Perusahaan dan Audit Internal Terhadap Kinerja Keuangan Perbankan Syariah Indonesia

The world of banking is one of the important aspects in moving activities in the economic field. It is important for banks to maintain stable and increasing profitability to fulfill obligations to shareholders, attract investors to invest, and increase public confidence in storing excess funds held by banks. This study aims to analyze the effect of Corporate Governance by measuring the sharia supervisory board, board of directors, and audit committee on the financial performance of Islamic banking as measured by profitability using Return On Assets (ROA) in Islamic banking companies registered with the Financial Services Authority (OJK) for the periode 2017-2021. This research method uses secondary data with documentation techniques. With a population of 14 Islamic Comercial Banks, the sample for this study was 5 Islamic comercial bank companies that match the criteria for selecting each company that attaches financial statements and good corporate governance reports by including the number of sharia supervisory boards, boards of directors, and audit committees. The sampling method used in this research is using purposive sampling technique. The data analysis technique uses multiple regression analysis using the SPSS 25 program. The result of this study explain that the sharia supervisory board has a partial negative effect on profitability, while the board of directors and audit committee have no effect on profitability.

Problematika Bank Islam di Daerah Minoritas Muslim

This article examines the problems of Islamic banking in Muslim minority areas, especially Thailand. This type of research is a descriptive qualitative research object with the Islamic Bank Prachuap Khiri Khan Thailand, while the data collection techniques are interviews, observation, and documentation. Data analysis is carried out through synchronization between research data and theories that will support the conclusions of this study. The results of this study indicate that the Prachuap Khiri Khan branch of the Islamic bank faces several problems in carrying out its banking operations. These problems include, among others, factors in the banking world in Thailand, internal factors related to the banking system and also the employees who work at the Islamic Bank, as well as factors from the customers themselves, which in fact, the Thai Muslim community lacks enthusiasm for Islamic banks. The evaluation that has been carried out by Islamic Banks on the problems faced is to provide short courses to Islamic Bank employees, especially to employees at the front office because in that section they meet and socialize more directly with customers. Then, provide more intensive socialization through various social media, outreach to Islamic foundations or schools in Thailand to attract interest and cooperation between the two parties, and Islamic Banks from the center to branches conduct annual evaluations to improve the banking system. and improving the quality of banking services to customers of the Prachuap Khiri Khan Islamic Bank Branch.

A: Financial Institutions

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C: Financial Operations and Services

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G: Principles and Methods

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D: Management, Accounting and Technology

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F: International and National Economies

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Editorial Statement & General Notes

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