Financial Performance Of Islamic Banks Research Articles

Is the GCC Islamic Banks' Financial Performance Affected by the 2007 / 2008 Financial Crisis ?

The purpose of this study is to examine the influence of the 2007/2008 financial crisis into financial performance of Islamic banks in the GCC and determine factors that significantly influence financial performance of the Islamic banks during 2005-2010. Data of 23 Islamic banks that completely reported their financial statements during 2005-2010 was extracted from Bankscope database. The relationship between dependent and independent variables was tested using panel data regression analysis. The study found that the financial crisis significantly affected financial performance of Islamic banks in the GCC. The impacts of the crisis were even worse in the two years after the crisis. The study also found equity, short term funding, overhead expenses and GDP per capita as the factors which significantly influenced financial performance of Islamic banks in the GCC during 2005-2010. The study is expected to benefit stakeholders of Islamic banks in the GCC in order to understand the factors that influence Islamic banking financial performance and minimize the impacts of any future financial crises.

Comparison between Islamic and Conventional Banking : Evidence from Malaysia

Purpose: To determine the financial performance of Islamic banks and non-Islamic banks from 2003 to 2010 in Malaysia by applying the theory of Sharī’ah Conformity and Profitability model. Methodology: This study used accounting ratios which included profitability ratio, liquidity ratio and credit risk ratio to measure the financial performance of the Malaysian banks. Findings: Results indicate that conventional banks perform better in profitability, while Islamic banks perform better in liquidity and credit risk. In t-test of the return on asset (ROA) and total equity to net loans, there are no major difference between Islamic banks and non-Islamic banks. In the return on equity and common equity to total assets, there are statistically significant differences in these two groups. The statistically significant difference was shown in the area of liquidity which means that the Islamic banks liquidity performance has major difference with the non-Islamic banks. These finding are partially rejecting null hypothesis of profitability ratio and credit risk ratio. Moreover, the results are also rejecting null hypothesis of liquidity ratio, that there is statistically significant difference in the mean of liquidity ratio between Islamic banks and non-Islamic banks.

HUBUNGAN KINERJA KEUANGAN BANK SYARIAH, ORIENTASI PASAR, ORIENTASI PEMBELAJARAN, DAN MODAL RELASIONAL

This study aims to determine the relationship of the financial performance of Islamic banks, market orientation, learning orientation, and relational capital. By knowing the kind of relationship would be beneficial for improving the financial performance of Islamic banks which have distinctive core business. The population in this study was the manager of Islamic banks in the province of Central Java. With purposive random sampling, 119 samples are obtained. SEM analysis results show the effect of learning orientation on market orientation, market orientation effect on relational capital, relational capital effects on the financial performance, the effect of learning orientation on financial performance, the effect of market orientation on financial performance is significant. Goodness of Fit value of the model is quite satisfactory.

Financial performance difference analysis of Mandiri Islamic Bank by using sharia value added and income statement approach on 2007-2011 period

This study tries to analyze the difference of financial performance of Islamic banks byusing income statement approach and value added approach based on financial ratio.The financial ratio which is used consists of ROA, ROE, and the ratio between thetotal net income by earning assets, NPM, and BOPO. The data for analysis weretaken from PT. Bank Syariah Mandiri Indonesia. Thus, the population of this researchis the financial report of PT. Bank Syariah Mandiri; while the sample of this researchwas the financial report year 2007- 2009 for each approaches that are Income StatementApproach and Value Added Approach. The means of analysis to prove the hypothesisof this research is an independent sample t-test. It shows that the averagefinancial ratio (ROA, ROE, net profit ratio of productive assets, and NPM). There aresignificant differences between the Income Statement Approach and Value AddedApproach, while the BOPO ratio between the Income Statement Approach and ValueAdded Approach has no difference. Yet, when viewed in the overall level of profitability,it shows that there are significant differences between the Income Statement Approachand Value Added Approach.

Eksistensi DPS dalam Memoderasi Pengaruh Pembiayaan, Kinerja Keuangan dan Pengungkapan CSR pada Bank Umum Syariah di Indonesia

<p><em>The research was conducted as motivated by previous research </em><em>related to Corporate Social Responsibility (CSR). Previous research</em></p><em>found mixed results seen from factors that influence the level of disclosure of CSR such as size, leverage, profitability (financial performance), board composition and ownership structure. The results of these findings is the space to do the test again to make the development or change in methodology. While the results of related research in Islamic banks are financing gap (lack). To the researchers intend to analyze whether the financial effect on the financial performance of Islamic banks as well as the extent to which the existence of the Syaria Supervisory Board moderating relationship. After that study also examines whether financial performance (profitability) affect the disclosure of CSR by entering the variable composition of the Council to moderate the relationship. Methodology that differentiates it from previous research, the supervisory board who previously used as a moderating variable became an independent variable by using Islamicity Disclosure Index and analysis tool using the Moderation Regression Analysis. The results showed no significant effect of financing, profitability and CSR Disclosure, and the role of DPS was also moderate the influence of the relationship between financing and profitability, but the Board of Commissioners did not moderate the influence of the relationship between profitability and CSR disclosure</em>

The impact of investor protection on financial performance of Islamic banks: An empirical analysis

The last decade witnessed dramatic growth of the Islamic banking and finance sector, which had largely been credited to its adoption of the profit and loss sharing principles. However, in practice, the Islamic banks mostly reply on debt-like financing methods such as mark-up and leasing finance instead. Consequently, the investors are exposed to default risks. This study empirically examines the impact of investor protection on financial performance of Islamic banks based on an unbalanced panel data collected from 91 Islamic banks and financial institutions worldwide across 1991-2010. Econometric techniques are adopted to specify the models. Results show that stronger investor protection results in better financial performance in the Islamic banking and financial institutions. The paper concludes with acknowledging the limitations and discussion of future research directions

Analisis Komparatif Kinerja Keuangan antara Bank Syariah dan Bank Konvensional Berdasarkan Metode Camel

The main objective of this paper is to give an overview of comparative financial performance of Islamic banks with conventional banks based on the CAMEL method. The main question would be answered to know there is difference in the performance of conventional banking and Islamic banking are analyzed by using the ratio CAMEL. To prove the hypothesis that there is no significant difference between the bank's financial performance Islamic and conventional banks (Ho) or there are significant differences between the financial performance of Islamic banks and conventional banks (Hi). Researchers used a parametric statistical technique, which consists of test data normality using the Kolmogorov Smirnov test and QQ plots, test of homogeneity using the F test (Levene's Test), and Independent Sample T-Test with significant value 5% confidence level (1 - α) = 95%. The results showed that the ratio of data CAMEL Islamic banks and conventional banks in normal distribution and homogeneous. Then it can be concluded that the variable CAR, NPL, and LDR between conventional banks and Islamic banks have significant differences, while the ROA and ROE of the two types of banking industry is not significantly different or relatively the same.

The Interest Prohibition and Financial Performance of Islamic Banks: Indonesian Evidence

In the beginning 2004, Majelis Ulama Indonesia (Indonesia Ulema Council) released fatwa that definitely mentioned the proscribing of interest. In the period after fatwa, the main indicators of Islamic banks indicated a significant growth. Thus, the objective of this study is to investigate whether the financial performance of Islamic banks in the period before fatwa is different from that in the period after fatwa. Furthermore, this study intends to examine the comparative financial performance of Islamic banks and conventional banks in the period both before fatwa and after fatwa. In evaluating banks’ performance, this study used various financial ratios categorized as profitability, liquidity, risk and solvency, and efficiency. To determine the difference, this study used t-test. The result of this study indicates that, in general, comparison of financial performance of Islamic banks in the period before fatwa and after fatwa does not show statistically difference. Likewise, the result of inter-bank analysis also indicates that there is no major difference in performance between Islamic banks and conventional banks in the period both before fatwa and after fatwa