Financial Performance Of Islamic Banks Research Articles

Ethical Identity Index and Financial Performance of Islamic Banks in Asia

This study is a follow-up study conducted by Zaki et al. (2014), who explored Islamic banks' ethical identity with financial performance. This study aims to identify the identity of Islamic banks in Asia against Shari'ah law and examine the relationship between EII and financial performance. The data used are financial data from 7 Islamic banks in Asia in 2016-2019. The study results show that the higher the EII value, the higher the Islamic bank supervision of sharia. Then the researcher describes the relationship between EII and financial performance as measured by using Return On Assets. The result is that there is no relationship between EII and financial performance.

Analysis of the Differences in Financial Performance of Islamic Banks and Conventional Banks Using the Camel Ratio

The purpose of this research is to analyze and to know the difference of financial performance between conventional bank and sharia bank period 2014-2019 using financial ratio proxy (CAMEL). The data used in this research is secondary data obtained from financial reports of Conventional Bank and Sharia Bank. The sample size is 29 Banks, consisting of 20 conventional banks and 9 Syariah banks. Data analysis method used is one way ANOVA difference test. The result of the research shows that there is a significant difference between conventional bank financial performance and financial performance of sharia bank seen from Capital Adequacy Ratio (CAR), Net Profit Margin (NPM) and Loan to Deposit Ratio (LDR). While, the ratio of Return On Risk Asset (RORA) and Return On Asset (ROA) financial performance of conventional Bank and Bank of Sharia could not significant difference.

Pengaruh Audit Internal dan Good Corporate Governance terhadap Kinerja Keuangan Perbankan Syariah

The aim of this study was to analyze the influence of internal audit and good corporate governance on financial performance of islamic banking in Indonesia. The data used in this study are annual reports of islamic banking listed on the Financial Services Authority (OJK) in the period 2014-2019. The method of taking data samples using purposive sampling method. Based on this method, a sample of 66 observations was obtained. Hypothesis testing in this study uses multiple linear regression analysis. The result show that internal audit has a positive and significant effect on financial performance, the board of directors has a positive but insignificant effect on financial performance, the board of commissioners has a negative and insignificant effect on financial performance, the audit committee has a positive and significant effect on financial performance, and the shariah supervisory board has a negative and insignificant effect on financial performance.

Risk, efficiency and financial performance in the GCC banking industry: Islamic versus conventional banks

PurposeThe purpose of this study is to critically evaluate how conventional and Islamic banks trade off risk, efficiency and financial performance in their business models, to investigate how patterns of risk and efficiency vary between conventional and Islamic banks and to critically evaluate how the profitability of conventional and Islamic banks varies following the financial crisis.Design/methodology/approachThis study uses univariate and multivariate statistical techniques by investigating 12 Islamic banks and 34 conventional banks operating in the Gulf Cooperation Council (GCC) region has been studied over the period 2011–2018.FindingsThe results suggest that Islamic and conventional banks differ not in the levels of efficiency, risk and profitability, but rather in how risk and efficiency influence banks’ financial performance. Islamic banks are found to be less influenced by the adverse effects of credit risk, which is consistent with the risk-sharing nature of Islamic financing. However, the results only hold for return on assets (ROA) and return on equity (ROE) while the net interest margin is observed to be negatively influenced by credit risk. Lower cost-income efficiency is also found to boost ROA and ROE of Islamic banks which could be attributed to a larger share of non-interest revenues due to Sharīʿah-compliance.Research limitations/implicationsFrom a theoretical point of view, this study helps to understand the risk, efficiency and financial performance of Islamic banks in comparison with conventional banks.Practical implicationsThe results of this study can serve bank managers, regulators and shareholders. Policymakers should encourage a more risk-sharing structure of Islamic financing as it brings less adverse effects of credit risk and increases income sustainability for Islamic banks. The present study may help bank managers to improve the financial performance of their firms by controlling risk and efficiency. The study results also have implications for shareholders and depositors of Islamic and conventional banks as they should have a predetermined position about the level of credit risk and efficiency in each banking system.Originality/valueThe foremost contribution is that this is one of the few studies to compare risk, efficiency and financial performance of Islamic and conventional banks in the GCC region. By using the latest data, this paper hopes that the findings will be more relevant than previous studies to the current situation of the banking industry in the region.

THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

Pengukuran Kinerja Keuangan Bank Pembiayaan Rakyat Syariah di Indonesia Melalui Pendekatan Shariah Conformity and Profitability (SCnP) Model Pada Periode 2018-2020

Measurement of Islamic banking financial performance using conventional methods shows unsatisfactory results. This method tends to prioritize profit and override sharia compliance. This study aims to measure the financial performance of 16 selected Sharia Rural Banks in Indonesia during the 2018-2020 period. Meanwhile, the measuring instrument used is Shariah Conformity and Profitability (SCnP). The results showed that there were only 11 Sharia Rural Banks that were included in quadrant 1 meaning that the bank was performing well with a high level of sharia compliance and high profitability. There are 5 Sharia Rural Banks that are included in quadrant 2, namely banks that perform quite well with high levels of sharia compliance and low profitability

THE ROLE OF GOOD CORPORATE GOVERNANCE (GCG) IN MAXIMIZING THE FINANCIAL PERFORMANCE OF ISLAMIC BANKING IN INDONESIA

The growth in the financial performance of Islamic banking in Indonesia is still an exciting discourse to discuss. This is because Indonesia, which is a Muslim country with the largest market share of halal products in the world, does not yet have a Sharia financial industry whose performance is classified as useful. The research attempts to explain how the principles of good corporate governance with the addition of Islamic principles can be a solution for the development of Islamic banking performance. The research method uses a qualitative approach and literature study. The results obtained from this study are that good corporate governance is expected to improve the company's financial performance in terms of managing company fixed assets, utilizing human resources, utilizing financial capital and maximizing corporate structure.

Social Responsibility Accounting Disclosure and its reflection on the financial performance of Islamic banks: الإفصاح المحاسبي عن المسؤولية الاجتماعية وانعكاساتها على الأداء المالي للمصارف الإسلامية: دراسة تطبيقية في مملكة البحرين

The study aimed to demonstrate the extent of the commitment of Islamic banks / retail sector in the Kingdom of Bahrain to the Corporate social responsibility disclosure (CSRD) and its exercise of it, and the level of disclosure in its annual reports for the years 2014- 2018 and to determine the efficiency of the financial performance of Islamic banks researched in the Kingdom of Bahrain by extracting ratios finance through analyzing the data obtained from the annual financial reports of Islamic banks that is considered as the research sample. The next stage of the present research is comparing them with the average sectoral standard, and measuring the impact of the obligation to disclose social responsibility on the financial performance of Islamic banks in the Kingdom of Bahrain, and was used as long as the methodology of the analytical description is because it is the most appropriate with the goals and variables of the research, in addition to being consistent with the research hypothesis, the researcher used a model of social responsibility disclosure index and adopted the financial ratios as an indicator to measure the dependent variable (financial performance) through which the researcher was able to perform the analysis of the obtained data from a sample chosen from Islamic banks in the Kingdom of Bahrain. The results of the research found that Islamic banks in the retail sector in the Kingdom of Bahrain are committed to accounting disclosure for social responsibility in their annual reports, ranging between (65%- 85%), and Islamic banks were the highest commitment in accounting disclosure for social responsibility has achieved efficiency in financial performance. The rate of return on assets was better, although there is a general weakness in the financial performance of banks researched using the return on assets and this is due to the weak returns and revenues of Islamic banks from the Islamic financing tools used and the failure to reach the ratio of the average sectoral standard of the bank. The study recommends the necessity of increasing the levels of disclosure for social responsibility in its annual reports, increasing returns for those banks and raising the efficiency of financial performance for Islamic banks.

PENGARUH FINTECH TERHADAP KINERJA KEUANGAN PERBANKAN SYARIAH

This study aims to determine the effect of fintech on the financial performance of Islamic banking. The type of research used in this research is descriptive research with a quantitative approach. The population in this study are all financial reports that have been published by Islamic banks that have started using fintech, namely BNI Syariah Bank, BRI Syariah Bank, Mandiri Syariah Bank, BCA Syariah Bank, Bukopin Syariah Bank and BJB Syariah Bank for the 2016-2018 period. Based on the purposive sampling method, the sample used in this study is Islamic Commercial Banks that have used fintech services such as Internet Banking, Mobile Banking, SMS banking, and Phone Banking and published annual financial reports from time to time during the research period, namely from 2016 -2018. Data management using SPSS. The survey results show that FinTech has an effect on financial performance (ROA, ROE, BOPO, CAR, FDR). The more sophisticated Fintech services in the field of Islamic finance will be, the more important it is for the financial performance of Islamic banks

THE EFFECT OF LIQUIDITY, NET INTEREST MARGIN AND GOOD CORPORATE GOVERNANCE RISK ON SHARIA BANKING FINANCIAL PERFORMANCE

This research is categorized as quantitative research. While the research design used in this research is correlation analysis, which is a type of research carried out with the aim of detecting the extent to which variations in a factor are correlated with one or more other factors based on the correlation coefficient. The research objective is to explain the effect and hypothesis testing by analyzing various data in the field. In the context of this research is to obtain facts from existing phenomena and to seek factual information about the improvement of Islamic banking financial performance. The population in this study were 11 Islamic banks in Indonesia with a 3-year observation period 2018-2020. The technique for determining the number of samples used was the saturated sample method in which the number of sample observations was 33 observation data. Data collection methods used in this study are primary data and secondary data. The results showed that Liquidity Risk has a positive and significant effect on Islamic Banking Financial Performance. Net Interest Margin has a positive and significant effect on Islamic Banking Financial Performance, Good Corporate Governance has no and significant effect on Islamic Banking Financial Performance and simultaneously Liquidity Risk, Net Interest Margin and Good Corporate Governance have a positive and significant effect on Islamic Banking Financial Performance. 
 
 JEL: G30; G10; G24
 
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Pengaruh Pembiayaan Syariah Terhadap Kinerja Keuangan Perbankan Syariah

This study aims to analyze Islamic financing; Mudharabah, Murabahah, Financing To Deposit Ratio, Non Performing Financing on the financial performance of Islamic Banking in Indonesia. Based on the sampling criteria, there are 15 Islamic Banks, namely a combination of Islamic Commercial Banks and Sharia Business Units with a research period of 5 years (2014-2018). The research analysis used is panel data regression analysis using E-Views 10. Based on the results of data analysis, only Non-Performing Financing has a significant effect on Return on Assets. Meanwhile, Mudharabah, Murabahah, and Financing to Deposit Ratio have no significant effect on Return On Assets. The research implication is that not all Islamic financing can contribute to the financial performance of Islamic banking.
 Keywords: Mudharabah, Murabahah, Financing to Deposit Ratio, Non Performing Financing and Profitability.

THE ROLE OF THE SHARIA SUPERVISORY BOARD (SSB) IN MODERATING THE EFFECT OF GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN INDONESIA

Purpose — The aims of this research to examine and analyze the extent of the role of the sharia supervisory board (SSB) in moderating the effect of good corporate governance on the financial performance of Islamic banks in Indonesia.  Design/methodology/approach — Population in this research is 14 (fourteen) Islamic banks in Indonesia and the sample used in this research is 9 (nine) Islamic banks that have published financial reports, good corporate governance reports, and annual reports for the period 2010 - 2019. This research data processed were processed using reviews-10.Findings — The results of this research stated that good corporate governance has a significant effect on the financial performance of Islamic banks. The sharia supervisory board (SSB) moderates the effect of good corporate governance on the financial performance of Islamic banks in Indonesia.Practical Implications — The chow test stated chosen model as fixed effects, then the Housman test stated chosen model as random effects. Thus the model used in this research is a random effect.Originality/value — To complete the results, this research used in-depth interviews with practitioners of Islamic banks in Indonesia, specifically the departement of compliance with Islamic banks.Keywords Good corporate governance, Sharia Supervisory Board, financial performancePaper Type Research Paper.

ISLAMIC BANKING PERFORMANCE MEASUREMENT: A CONCEPTUAL REVIEW OF TWO DECADES

This article aims to provide an overview of the development of research on the measurement of Islamic banking performance over the past 20 years from 89 selected papers with Scopus-indexed journals ranked Q4 to Q1 or accredited with Sinta 2 to Sinta 1. This study used a qual-quantitative meta-analysis approach using the Mendeley citation application. The distribution of the topic and the depth of research in paper samples based on keywords in publications were analyzed using the VOSviewer application. The results of the analysis showed that the research trend of Islamic banking performance in reputable journals is increasing in recent years. Most of the studies performed in the last two decades have focused on the practice and corporate governance of Islamic banks and comparisons between Islamic and conventional banks based on financial performance ratios and aspect of maqasid al-Shariah; Only a few studies that discuss efficiency, social performance on Islamic banks, regulation, intellectual capital and stability of the financial performance of Islamic banks were found. The further discussion is an empirical exposure without theoretical exploration or analysis which is supposed to become the direction of banking research in the future.
 JEL Classification Codes: G21, L25, P17, P47.

Banking Financial Performance Before and During the Covid 19 Pandemic in Indonesia: Analysis of Comparison Between Islamic and Conventional Banking

Banking is one of the financial institutions that is very influential on the economic conditions of a country. The level of banking liquidity is a reflection of the condition of the national economy. This study examines the differences in the financial performance of conventional banking and Islamic financial performance before and during the COVID-19 pandemic in Indonesia. The variables used to measure banking financial performance are risk profile, earnings, and capital. The data used are financial reports published by Otoritas Jasa Keuangan (OJK). The analysis used is the Multivariate Analysis of Variance (MANOVA). The results of the analysis found that there was no difference in the financial performance of Islamic banking on risk profile, earning, and capital indicators before and during the COVID-19 pandemic; there is no difference in the conventional financial performance of earning indicators before and during the Covid 19 pandemic; and there is no difference in the financial performance of conventional banking earning indicators during covid 19 and Islamic banking financial performance indicators of earning before covid 19. This analysis shows that the performance of Islamic finance is still able to deal with the impact of the COVID 19 pandemic in Indonesia.

Analisis Pengaruh Rasio Kesehatan Bank terhadap Kinerja Bank Umum Syariah di Indonesia Periode 2012-2018

The main problem in this research is the slowdown in the growth of Islamic banking in Indonesia. This is thought to be caused by the soundness of the banks themselves and the decline in banking performance. This Study selects the dependent variable of the performance of Islamic banking, namely the ratio of Financing to Deposit Ratio (FDR) which represents the level of liquidity, and Return on Assets (ROA) which represents the profit of Islamic banking. As for the independent variable, this study examines financial ratio which is included in the bank health assessment ratuis according to the Bank Indonesia version which refers to the elements of Capital, Assets, Quality, Management, Earnings, Liquidity, and Sensitivity, Shile in this study applying financial ratios commonly used to measure the financial performance of banks, including Capital Adequacy Ratio (CAR), Operating Costs to Operating Income (BOPO), Net Interest Margin (NIM) in conventional banks, Net Operation Margin (NOM) in Islamic banks, Non Performing Loans (NPL) in conventional banks and Non-Performing Financing (NPF) in Islamic banks. Therefore, it is necessary to re-examine the consistency of these variables in influencing banking performance, especially Islamic banking in Indonesia. The method used in this research is panel data regression analysis. This method is also used to obtain valid and reliable data so that it can be developed as the knowledge that can be used to understand, solve and anticipate problems in organizations, especially sharia taxis. The purpose of this study was to determine and analyze the effect of the soundness ratio of Islamic banking as measured by bank health ratios, namely CAR, NPF, BOPO, and NOM on Islamic Banking Financial Performance as proxied on the level of bank profit or profitability (ROA) and the level of liquidity (FDR). The results of this study, CAR has a positive effect on ROA. Meanwhile, FRD CAR has a negative effect. NPF has a negative effect on ROA and FDR. NOM has a positive effect on ROA. Meanwhile, For FDR NOM has a negative effect. BOPO has a negative effect on ROA and FDR. Keywords: Islamic Banking, CAR, NPF, BOPO, NOM, ROA, FDR.

Financial Performance Islamic Banking: a Comparative Analysis Before and During the Covid-19 Pandemic in Indonesia

The Covid 19 pandemic which spread to all countries in the world including Indonesia, caused various economic sectors, especially the financial sector, to be shaken. Especially at the beginning of the Covid 19 case, almost all sectors of the economy were paralyzed. Government regulations prohibiting non-essential activities outside the home, restricting operations in several vital sectors, and prohibiting crowds, add to the long list of causes for the weak performance of the financial sector. However, the Islamic banking financial sector was not too affected as evidenced by the financial performance of Islamic banking which was still in a good category. So it is necessary to further investigate the differences in the financial performance of Islamic banking before and during the Covid 19 pandemic in Indonesia.
 The data used in this study are secondary data collected through documentation. The number of samples studied was 34 Islamic banking consisting of 14 Islamic Commercial Banks and 20 Islamic Business Units. The data analysis used was the Multivariate Analysis of Variance (MANOVA) analysis.
 The results of the analysis show that there are differences in the financial performance of Islamic banking before and during the COVID-19 pandemic in Indonesia. In addition, before and during the Covid 19 pandemic had a significant effect on Islamic banking financial performance consisting of Non Performing Finance (NPF), Capital Adequacy Ratio (CAR), and Return On Assets (ROA).

Comparative analysis of QISMUT+3’s Islamic corporate social responsibility

PurposeThe purpose of this study is to analyze the impact of corporate social responsibility (CSR) disclosure on the financial performance of Islamic banks across nine countries as major markets that contribute to international Islamic bank assets (Indonesia, Malaysia, Saudi Arabia, UAE, Kuwait, Qatar, Turkey, Bahrain and Pakistan or further will be called QISMUT + 3 countries).Design/methodology/approachIslamic Social Reporting Disclosure Index (ISRDI) is being used as a benchmark for Islamic bank CSR performance that contains a compilation of CSR standard items specified by the Accounting and Auditing Organization for Islamic Financial Institutions. The secondary data is collected from the respective bank’s annual reports and it used the regression analysis techniques for statistical testing.FindingsThis study found that CSR disclosure measured by ISRDI has a positive effect on financial performance. Almost all ISRDI sub-major categories have a positive effect on financial performance except the “environment” subcategory. The highest major subcategory for ISRDI is the “corporate governance” category (82%) and the “environment” category (13%) is the lowest. For the UAE, Kuwait and Turkey, the ISRDI is positively affected by financial performance and the other countries on this research are not.Originality/valueThis study highlighted the economic benefits of social responsibility practices as a part of business ethics in nine countries that uphold the value of religiosity. Thus, the development of the results of this research for subsequent research is very wide open.

Predicting Islamic Banks Performance During the Covid-19 Pandemic through CAMEL Ratio Strategy

The Covid-19 pandemic, which has spread to almost all countries in the world, is currently causing the social and economic life of the community to shake so that it is thought to affect the financial performance of Islamic banks. This study aims to determine the financial performance of Islamic banks before and during a pandemic. The study was conducted by comparing financial reports with CAMEL analysis. The results of the study show that there is no significant difference between the financial performance of Islamic banks before and during the outbreak. Despite the global crisis due to the Covid-19 pandemic, the financial performance of Islamic banks has remained stable. This can be seen in the increase in financial ratios such as CAR and ROA, while the BOPO and NPF ratios tend to decrease, which indicates the efficiency of funds operated by the bank. Even though there was an increase in the amount of credit issued, the increase was still safe.

Determinant of Sharia Bank's Financial Performance during the Covid-19 Pandemic

Financial performance as a measuring instrument to know the process of implementing financial resources owned by the company. The Covid-19 pandemic has impacted the banking sector, resulting in poor financing due to debtors' disbursements as a result of the large number of people losing their jobs and difficulties in financing payments. This research aims to analyze the financial performance of Islamic Banks during the Covid-19 pandemic, using records of annual financial statements from 2011 to 2020 through Multiple Linear Regression testing and linearity testing of the model used ramsey test. As a result of this study, the results of the t test found that the Capital Adequacy Ratio (CAR), Operating Costs to Operating Income (BOPO), Financing to Deposit Ratio (FDR) had a positive and significant effect on financial performance (ROA) while Not Performing Financing (NPF) had a negative and insignificant effect on financial performance (ROA). Furthermore, simultaneously capital adequacy ratio (CAR), Operating Costs to Operating Income (BOPO), Financing to Deposit Ratio (FDR) and Not Performing Financing (NPF) significantly influenced the financial performance (ROA) of Sharia banks in Indonesia.

Improving Financial Performance Through Islamic Corporate Governance, Islamic Corporate Social, And Intellectual Capital

ABSTRACT
 The rapid development of Islamic banks requires Islamic banks to continue to create value as a competitive advantage and demonstrate the healthy performance of Islamic banks. There are several determinant factors as the creator of added value, namely Islamic Corporate Governance, Islamic Corporate Social, and Intellectual Capital. With the increase in the added value factor, the performance of Islamic banks will improve and be able to absorb the market share of Islamic banks to be wider. Islamic Bank Financial Performance in this study uses the measurement of the Islamix Performance Index (IPI). By using the analysis tool EViews 9, the results of a partial regression test are obtained that the three factors that add value to the company, namely ICG, ICSR, IC, affect the financial performance of Islamic banks.