Islamic Banks In Indonesia Research Articles

Analysis of Zmijewski Model's Accuracy in Predicting Potential Financial Distress for Indonesian Islamic Banking

Every banking activity and product has risks. Risk is the result or consequence of an activity during the process or in future circumstances that can cause losses. Financial Distress can be characterized by a decrease in various financial ratios, a reduction in assets, a decline in sales, a decrease in profits and profitability levels, a reduction in working capital, and a continuous increase in debt. So, in this research, the author wanted to know the level of accuracy of the Altman z-score model in predicting potential financial Distress for Sharia Commercial Banks in Indonesia. The population used in this research was Sharia Commercial Banks registered with the Financial Services Authority. The sampling technique that the researchers used was purposive sampling, with a total sample of 12 Islamic commercial banks. The research results showed that only one bank experienced financial Distress, while 11 other banks experienced good economic conditions. The Zmijewski model is good because it has a high level of accuracy with a low error.

Analisis Perbandingan Kinerja Keuangan Perbankan Syariah Yang Melantai di Bursa Efek Indonesia : Studi Kasus Perbandingan Kinerja Keuangan Bank Syariah Indonesia dan Bank BTPN Syariah

"The Islamic banking industry in Indonesia has experienced rapid growth in recent years. Bank Syariah Indonesia (BSI) and Bank BTPN Syariah are two leading Islamic banks in Indonesia. However, in the post-pandemic era, there has been limited research comparing the financial performance of these two banks. Therefore, this research aims to analyze the financial performance comparison of Islamic banking institutions that have publicly listed their shares on the Indonesia Stock Exchange, namely Bank Syariah Indonesia and Bank BTPN Syariah. The objective of this research is to compare the financial performance between Bank Syariah Indonesia and Bank BTPN Syariah and provide recommendations for investors interested in investing in the Islamic banking sector. This research uses a descriptive-comparative method with a quantitative approach. The data used is secondary data obtained from the financial reports of both banks for the last two years (2021-2022). The measured variables include return on equity (ROE), return on assets (ROA), and price-to-earnings ratio (PER). The data obtained is analyzed using statistical analysis techniques such as t-tests, F-tests, and regression analysis."

Determinants of Employee Performance: A Case of Indonesia's Islamic Bank Merger

This study aims to determine the influence of change management, organizational culture, and transformational leadership on the performance of Bank Syariah Indonesia employees. This study uses a quantitative approach with an explanatory research type. The data collection method uses questionnaire dissemination. The population used in this study was employees of Bank Syariah Indonesia, amounting to 100 people. Still, in the dissemination process, questionnaires were obtained again and then reduced to 78 questionnaires. The method to process data is SEM (Structural Equation Model), which uses AMOS software version 24.0 as a tool. Based on the results of the goodness of fit criteria analysis, after modification, indices obtained χ2: 334.059 with P≥0.05, CMIN / DF: 1.114 (≤2.00), RMSE: 0.038 (≤0.08), GFI: 0.805 (≥0.90), NFI: 0.874 (≥0.90), TLI: 0.978 (≥0.90), IFI: 0.985 (≥0.90). The goodness of fit criterion is in good condition, where after modification, indices can see a decrease in the value of chi-square offset by an increase in other criteria. This explains that modifying indices improves the goodness of fit criteria in good condition. The results of this research analysis include (1) change management has a significant influence on transformational leadership; (2) organizational culture has no influence on transformational leadership; (3) change management has a significant influence on employee performance; (4) organizational culture has a significant influence on employee performance; (5) Transformational leadership has no significant effect on employee performance; (6) transformational leadership has no mediating influence on change management and employee performance; (7) Transformational leadership has no mediating influence on organizational culture and employee performance.

Analisis Pengaruh Pertumbuhan Ekonomi, Inflasi, Dan Nilai Tukar Mata Uang Asing Terhadap Profitabilitas Bank Umum Syariah Di Indonesia Periode 2016-2020

This study aims to determine the effect of macroeconomic variables, namely economic growth, inflation and foreign exchange rates on the profitability of Islamic banks in Indonesia. The data sources for macroeconomic variables in this study are secondary data published by BPS and SEKI, while the profitability data for 14 Islamic banks in Indonesia are taken from the OJK Sharia Banking Statistics. The research method used in this study is a quantitative method with panel data analysis. The results showed that there was no significant effect of macroeconomic variables, namely economic growth, inflation and exchange rate variables on the profitability of Islamic banks partially, but simultaneously significant.

A Cross-Country Analysis of Islamic Bank’s Performance in Malaysia and Indonesia

This study aims to examine the financial performance of Islamic banks in Indonesia and Malaysia, with a specific focus on optimizing shareholder value. The assessment includes efficiency, market share, interest rates, inflation and economic growth as crucial criteria in comprehending the success of Islamic banks in each country. The secondary data is derived from the annual reports of 25 Islamic banks in Indonesia and Malaysia, with a focus on characteristics pertaining to operational efficiency and market share. Furthermore, data is obtained from Bank Indonesia (BI) to gather statistics regarding inflation, interest rates, and GDP growth from the years 2018 to 2021. The study used panel data regression with a random effects model as the most accurate estimator. The results of the panel data regression analysis suggest that inflation has a favorable effect on return on equity (ROE), while GDP growth has a beneficial impact on return on assets (ROA). This research highlights the importance of enhancing inflation risk management and making strategic adaptations to the business plans of Islamic banks in Malaysia and Indonesia. This research enhances the scholarly comprehension of the variables affecting the efficiency of Islamic banks in diverse economic conditions.

Shariah Governance Practice on Indonesian Islamic Banks

Research Aims: This study aims to assess the implementation of Shariah governance in Indonesian Islamic banks. Methodology: This study utilises a qualitative approach coupled with content analysis; this study evaluates the alignment of Sharia Supervisory Board (SSB) practices with relevant regulations. Research Findings: The analysis revealed that none of the Islamic banks breached regulations or deviated from the prescribed criteria in the Sharia Supervisory Board (SSB) recruitment or characteristics. Theoretical Contribution: This study is poised to enrich the diversity of backgrounds within the Sharia Supervisory Board (SSB), aiming to elevate its overall quality. Research limitation and implication: This study exclusively examines the framework of Sharia governance within the context of Indonesia, and therefore, the findings should be separate from diverse country contexts.

Cash Waqf Linked Deposit Potential for Revitalizing Islamic Banking in Indonesia

Cash Waqf Linked Deposit Potential for Revitalizing Islamic Banking in Indonesia

Nexus between Sharia Governance and Financial Performance: Evidence from Indonesian Islamic Banking

Nexus between Sharia Governance and Financial Performance: Evidence from Indonesian Islamic Banking

Determinants of Risk in Indonesian Islamic Banking: An Empirical Investigation

Determinants of Risk in Indonesian Islamic Banking: An Empirical Investigation

Corporate governance and Islamic social reporting: Indonesia Islamic banking development roadmap era

This research examines the corporate governance effect on Islamic Social Reporting (ISR). This research was conducted in 2015-2022, used the ISR codification, collected from the annual reports of ten Indonesian Islamic banks, and applied the Stakeholder Theory approach which has never been done previously. The research results show that Board of Commissioners’ meetings, Audit Committee meetings, and Sharia Supervisory Board meetings significantly and positively affect ISR. These findings imply that supervision through the meetings of the Board of Commissioners, Audit Committees, and Sharia Supervisory Board plays a role in detecting ISR. Corporate governance in Islamic banks continuously seeks to maintain sustainability in Islamic banks, including the support for stakeholders. ISR is a form of Islamic bank accountability to show that Islamic banks always prioritize their stakeholders, including the support for the Indonesia Islamic banking development roadmap prepared by the Financial Services Authority.

Stakeholder Perception on Corporate Social Responsibilities (CSR) Effectiveness in Islamic Banking

Based on stakeholder theory, the main goal of a company is to maximize and create added value for all stakeholders. In general, some argue that the existence of an organization or company aims to create value for shareholders, they are also expected to be socially responsible for the society in which they operate. This study try to describe and explain the level of effectiveness of Islamic Bank CSR in ethical and philanthropic responsibilities indicators based on stakeholder perceptions using Structural equation model (SEM). This study found that Islamic banks in Indonesia have been considered quite effective in terms of Corporate Social Responsibility. This study enlightens and recommends that Islamic Banks be actively involved in the activities of Corporate Social Responsibility so as to be effective in promoting Islamic Financial Institutions (IFIs). In the end, there are several conclusions, namely suggesting that Islamic Banks in Indonesia should not only rely on marketing strategies in spiritual terms to attract customers to use their products, but to get customers by being actively involved in CSR activities. The impact is not only to attract customers, but also to contribute to the social life and welfare of the community and the surrounding environment.

The influence of Natural Certainty Contract (NCC) and Natural Uncertainty Contract (NUC) financings on the financial sustainability of Islamic commercial banks in Indonesia

IntroductionResearch on Islamic banking in Indonesia has extensively addressed its performance and stability. However, studies on stability from the perspective of Natural Certainty Contract and Natural Uncertainty Contract financing have been relatively scarce.ObjectivesThis study measures how profitability mediates the impact of Natural Certainty Contract (NCC) financing and Natural Uncertainty Contract (NUC) financing on financial sustainability.MethodThe research utilizes secondary data obtained from quarterly reports for the periods I-IV of 2018-2022 on the official website of Sharia commercial banks. All Sharia commercial banks in Indonesia listed in the OJK for the period 2018-2022 constitute the population for this study, while the sample consists of Sharia commercial banks in Indonesia that meet the criteria. The sampling method employed is purposive sampling, resulting in eight Sharia commercial banks in Indonesia as the sample based on predetermined criteria.ResultsThe findings of this study indicate that NCC financing negatively influences profitability, NUC financing has no impact on profitability, NCC financing positively influences financial sustainability, NUC financing negatively influences financial sustainability, profitability (ROA) positively influences financial sustainability, NCC financing indirectly negatively affects financial sustainability through profitability, and NUC financing indirectly has no impact on financial sustainability through profitability.ImplicationsIslamic commercial banks should be more selective in financing allocation, focusing on options with lower risks. Furthermore, Islamic commercial banks should also manage financing effectively to minimize existing risks, thereby enhancing profitability.Originality/NoveltyThis study contributes to enrich studies in the field of Islamic finance with emphasize on Islamic commercial banks profitability and financial sustainability.

Twenty years of Islamic banking literature by Indonesian researchers: A hybrid reviews

Purpose – The emergence and growth of Islamic Banking in Indonesia have significantly increased over the past few decades. Consequently, there is a pressing requirement for a thorough examination to analyze the present state of IB literature, including its development and conceptual framework.Methodology – This study utilizes a bibliometric methodology and Systematic Literature Review (SLR), applying content analysis techniques to uncover the intellectual framework of IB literature produced by Indonesian researchers, as documented in the Scopus database. This study utilized 418 articles published between 2003 and 2023, resulting in a total of 418 articles. Data were analyzed using various software applications, including Publish or Perish (PoP), Excel, VOS-Viewer, and Biblioshiny-R.Findings – This study identifies the institutions, authors, journals, and articles that have had the most influence on IB literature published by academics in Indonesia. Additionally, this study sought to uncover patterns of research collaboration within this body of literature. Moreover, this study discovered four main clusters: comparing Islamic and conventional banks, examining the interaction between Islamic banks and their customers, exploring corporate social responsibility (CSR) and accounting practices, and examining the impact of Covid-19 within the context of Islamic banking. Implications – The findings of this study will assist researchers in identifying a range of potential topics for future research that Indonesian researchers can explore.Originality – Applying bibliometrics and SLR methodologies enables this study to comprehensively assess literature development in the IB in Indonesia by incorporating quantitative and qualitative analyses.

Deposit Strategy of Easy Wadiah Savings Fund at Bank Syariah Indonesia

This study aims to find out about the development of Islamic banks in Indonesia. This research is qualitative descriptive. This study included literature to examine the written sources such as scientific journals, books referesni, literature, encyclopedias, scientific articles, scientific papers and other sources that are relevant and related to the object being studied. As for the object of study of this research is in the form of texts or writings that describe and explain about the development of Islamic banks in Indonesia. Results from this study is Indonesian banking now enlivened by the presence of Islamic banks, which offers financial products and investment in a different way than conventional banks, as Indonesia is the largest Muslim country in the world. The development of Islamic banking in Indonesia has become a benchmark for the success of the Islamic economic existence. Bank Muamalat as the first Islamic bank and a pioneer for other Islamic banks in Indonesia.

Analisis Kinerja Keuangan Perbankan Syariah Indonesia Sebelum dan Sesudah Merger Bank Syariah Indonesia

This research is motivated by the measurement of financial performance in Islamic banking. The existence of financial performance in Islamic banking will affect the good value for the banking company, because it will become a reference for investors and become a reference in how much the value of the stock price will be determined by investors. This study aims to analyze the existence of financial performance in Islamic banking in Indonesia before and after the merger. The data in this study were obtained and obtained from the financial reports of Islamic banking in Indonesia. This study uses secondary data by taking data sources on the internet. The method of data analysis used is comparative analysis. The results of this study provide an indication that there are significant differences between profitability, liquidity, solvency, activity ratios, and market ratios before and after the merger to become Bank Syariah Indonesia, with the merger making Bank Syariah Indonesia experience rapidly increasing revenues. This means that Working Capital has a significantly positive influence on the results of operations at Bank Syariah Indonesia.

Optimalisasi Pembiayaan Mudharabah Pada Bank Syariahdi Indonesia

This research is motivate d by the fact that Islamic banks in Indonesia are currently not optimal in channeling mudharabah financing. Islamic bank financing in Indonesia is still dominated by murabaha financing. The purpose of this study is to discuss in depth regarding the optimization of mudharabah financing in Islamic banks in Indonesia. A qualitative research approach is used in this research. This research uses secondary data or literature study. This study uses the qualitative data analysis technique modeled by Miles and Huberman. The results of this study indicate that if the percentage of mudharabah financing in Islamic banks in Indonesia is still relatively small, people tend to use murabahah financing rather than mudharabah financing. Then from the side of Islamic banks in Indonesia so far they have been trying to maximize the distribution of mudharabah financing.
 Keywords: optimization, mudharabah financing, islamic banks.

Pengaruh Islamicity Performance Index Terkait Nilai Perusahaan dengan Konsep Maqashid As-Syariah

The Islamicity Performance Index is a performance measurement tool that is able to reveal the materialistic and spiritual values ​​that exist in sharia companies. Performance measurement using the Islamicity Performance Index is only based on information available in the annual financial reports. This index refers to Profit Sharing Ratio, Zakat Performance Ratio, Equitable Ratio, Director Employess Welfare Ratio, Islamic investment vs non-Islamic investment, Islamic income vs non-Islamic income and AAOFI index. The results of this study indicate that Islamic financial performance (Islamicity Performance Index) is able to significantly and positively influence company value as measured using the concept of Maqashid as-Syariah. So that if the Islamic financial performance (Islamicity Performance Index) in the ranking is considered UNSATISFACTORY, it will have an impact on company value in the Maqashid as-Syariah concept which also tends to get a bad rating in the eyes of investors. And vice versa, if the rating is considered SATISFACTORY, then the value of the company will tend to get a good assessment and added value in the eyes of investors. Firm size is able to negatively moderate (weaken) the relationship of the Islamicity Performance Index to firm value in Islamic Commercial Bank companies. The results that occurred in this study could also be caused by macroeconomic factors that greatly affect the performance of Islamic banking in Indonesia with an increase in inflation which has a negative impact on Islamic banking financial performance (ROA).
 Keywords: Islamicity Performance Index; syariah companies; Maqashid as-Syariah

Analisis Faktor-faktor yang Mempengaruhi Minat Masyarakat Menabung di Bank Syariah Indonesia

Islamic banking is an Islamic economic phenomenon that has become an alternative and increasingly popular with people around the world, including millennials. Not only to accommodate the interests of Muslims, but also to integrate personal interests and community benefits in a balanced form. Islamic banking in Indonesia is currently experiencing rapid development. As a country with the largest Muslim population in the world, Indonesia certainly has a very important role in building the Islamic economy. This can be used as a great opportunity by Bank Syariah Indonesia in optimizing its role to support the country's plan to develop Islamic finance in Indonesia. It can be seen that the number of customers at Bank Syariah Indonesia is still far from expectations when viewed from the large Muslim population in Indonesia. This indicates that there are still many Muslim residents in Indonesia who still do not use the services of Sharia Banks in Indonesia. This indicates that there are still many Muslim residents in Indonesia who still do not use the services of Sharia Banks in Indonesia. This can arise by several factors that are the reason why the Indonesian Muslim population is still reluctant to use the services of Bank Syariah Indonesia. The large gap between the Muslim population in Indonesia and the number of customers of Bank Syariah Indonesia is one of the attractions for researchers to conduct an analysis of the Factors Influencing Public Interest in Saving at Bank Syariah Indonesia (BSI). Interest can be interpreted as an interest or tendency to choose what is desired. One example is the interest and tendency towards interest in saving, for example a religiously inclined person will choose Islamic banks over conventional banks because based on Islamic religious law which prohibits his people from transacting ribawi (interest). According to (crow & crow 1998) states that there are six that affect interest, namely: income factors, job stability factors, financial goal factors, risk avoidance factors, knowledge factors, social and cultural environmental factors. While the author in conducting this study used descriptive qualitative methods with data collection techniques used was to conduct structured interviews to the community with the help of research instruments in the form of mobile phone cameras as photo documentation and recordings during interviews with the people of Bandung City which at this time became a source of research information. The results obtained from research conducted by the author to the people of Bandung city resulted in income, risk avoidance / security factors and social and cultural environmental factors are factors for people interested in saving their money in Indonesian Islamic banks (BSI).
 Keywords: Bank Syariah Indonesia, community, Interest.

Does intellectual capital efficiency improve islamic banking performance? The moderating effect of islamic governance

Research aims: This paper aims to examine the moderating effect of Islamic governance on the relationship between intellectual capital efficiency (ICE) and Islamic bank performance.Design/Methodology/Approach: The population for this study covered Islamic banks in Indonesia. Purposive sampling was performed, and statistical analysis was conducted using moderating regression analysis by selecting among the common, fixed, and random effects models. The statistical tool utilized was E-Views 12.Research findings: The primary finding of this study is related to the positive moderating effect of structural capital efficiency on the relationship between intellectual capital and Islamic banking performance. Furthermore, Islamic governance could not strengthen the influence of human capital efficiency and capital employed efficiency on the performance of Islamic banks.Theoretical contribution/Originality: To the best of the authors’ knowledge, no other research has examined whether intellectual capital significantly affects the performance of Islamic banks with a moderating effect on Islamic governance in Indonesia.Practitioner/Policy implication: The results of this research provide input for the Sharia Supervisory Board to pay attention to the management of intellectual capital in Islamic banks and encourage Islamic banks to increase the value of intangible resources, capabilities, and asset knowledge to create and maintain competitive advantages in Islamic banks.Research limitation/Implication: This study focused only on Indonesian Islamic banks; hence, future research should be extended to Islamic insurance and microfinance.

Literature Review: Perkembangan dan Kinerja Bank Umum Syariah di Indonesia Tahun 2014-2023

Purpose: This study investigates the development and performance of Islamic commercial banks in Indonesia from 2013 to the present, focusing on the factors that influence growth and the challenges faced by the Islamic banking sector in supporting economic stability and inclusiveness. Methodology/approach: This research uses a literature review method of 30 previous research articles from the Google Scholar and Research Gate sites, which measure the financial performance of Islamic Banks in Indonesia in terms of profitability during the publication period–2013-2023. Results/findings: This research study reveals that several studies on Islamic Banks in Indonesia use various indicators to measure financial performance and bank health, > 60% of researchers use the variable measurement ratios ROA, ROE, BOPO, CAR, FDR and NPF while the rest some use the LDR, RGEC, NIM, CGC, ETA, EFF, NPL and DPK ratios Limitations: The use of research methods in the form of literature that focuses on the analysis of several previous studies conducted by Google Scholar and ResearchGate can reduce the validity and generality of the research results. The literature review does not involve collecting primary data through observation or experimentation; therefore, the information obtained is descriptive and does not allow the identification of causal relationships. Contribution: Through a careful literature review of previous articles, this study succeeded in identifying the main trends, innovations, and challenges faced by the Islamic banking sector in Indonesia.