Islamic Banks Research Articles

Bibliometric Analysis of Islamic Crowdfunding: A Literature Review of Its Journey

Background The potential of Islamic crowdfunding to encourage the development of Islamic fintech globally, even in countries with non-Muslim majority populations, needs to be examined in a literature study on this issue. More extensive research is needed regarding the factors that most reliably predict the success of Islamic crowdfunding, such as compliance with Islamic crowdfunding laws, sustainability, and the potential of Islamic finance. This article describes a comprehensive and systematic Literature Review (SLR) regarding papers published in the field of Islamic crowdfunding. This research aims to contribute to a better understanding of Islamic crowdfunding, provide useful information for practitioners, and stimulate further research in the field to increase the success of Islamic crowdfunding. Methods We conducted a review of selected papers to identify gaps and significant issues in Islamic crowdfunding, providing guidance for future researchers. This article review was based on 704 articles retrieved using the keyword “Islamic crowdfunding” from the Scopus database between 2013 and 2022. To minimize bias, we formulated 5 research questions to guide our analysis: RQ1: How do publication and citation rates vary annually? RQ2: How can we determine the most influential studies based on citation counts for each keyword? RQ3: What are the most common subject areas addressed in Islamic crowdfunding literature from 2013 to 2022? RQ4: What are the most frequently used keywords in Scopus documents? RQ5: How are Islamic values discussed in articles related to Islamic crowdfunding? Results The findings of this research demonstrate that Islamic crowdfunding, characterized by interdisciplinary scholarship, has emerged as an increasingly significant alternative for aiding society and the economy. It contributes to poverty alleviation and the development of specific sectors through channels such as crowdfunding for small and medium enterprises and social projects tailored to meet the diverse needs of Muslims. However, the challenge facing the future development of Sharia crowdfunding is that, despite its benefit of increasing community participation in projects aligned with religious values, it also carries the potential risk of investment losses and non-compliance with Sharia principles. Ways to address the current scarcity of Sharia fintech are also needed, ensuring its broader acceptance across all societal levels, and enhancing Muslims’ understanding of compliance with Islamic religious rules, particularly Fiqh law. Conclusion Urgently needed are specific fiqh regulatory guidelines to ensure that Sharia-compliant crowdfunding adheres to Islamic principles. Government support, particularly through legislation in countries where the majority of the population is Muslim, is crucial to enhance public participation and trust in Sharia crowdfunding.

Gamifying Ethical Entrepreneurship: The Role of AI in Islamic Finance

The convergence of gamification, entrepreneurship, and Islamic finance offers a unique opportunity to foster an inclusive and sustainable economic ecosystem. This study explores the synergies between these domains and the role of artificial intelligence (AI) in driving this transformation. Gamification enhances entrepreneurial endeavours by creating immersive and engaging experiences that stimulate creativity, motivation, and problem-solving abilities. Techniques such as challenges, rewards, and feedback motivate entrepreneurs to overcome obstacles and achieve their goals efficiently. Islamic finance, emphasizing ethical and fair financial transactions, complements gamification in entrepreneurship. Gamification engages entrepreneurs with Sharia-compliant products and services, promoting financial inclusion and understanding of Islamic finance concepts through interactive simulations and platforms. The synergistic interplay of gamification, entrepreneurship, Islamic finance, and technopreneurship, supported by AI, promises to create a more inclusive, ethical, and sustainable economic landscape. As the financial industry evolves, gamification empowers entrepreneurs to navigate complexities, create social impact, and uncover new opportunities in the digital economy.

Navigating the Adoption of Islamic Banking in the Base of Pyramid Market of Pakistan

The purpose of this research paper is to examine the adoption of Islamic banking (AIB) in the Bottom of the Pyramid (BoP) Market of Pakistan. The study used theory of planned behavior to hypothesize the relationship of the attitude (ATT), subjective norms (SN), perceived behavioral control (PBC), and Islamicity of the Product (IoP) on adoption of Islamic Banking (IB). Exploratory research design was used with a total of 400 questionnaires were distributed using a multi-staged stratified sampling (random sampling within each stratum) approach of which 320 usable questionnaires were returned representing 80 percent response rate. Partial Least Square Structural Equation Modeling (PLS-SEM) approach was used to analyze the hypothesized relationship of the conceptual framework. Results indicated that attitude (ATT), subjective norms (SN), and Islamicity of product (IoP) explained notable effect on the adoption of Islamic banking comparatively the perceived behavioral control (PBC). The overall effect of ATT, SN, PBC, and IoP explained 39.3 percent on AIB within the context of BoP. The adoption of Islamic banking counts the aforementioned variables with their countable effects. The inclusive outreach and features explaining the Islamicity of the financial products can enhance the span Islamic banking market share. Islamic banking over the past decade has witnessed tremendous growth in Asian countries due to innovative financial offerings based on the Sharia Principles of Islam. This study contributed on how the Islamic financial products can be penetrated in the low-income markets like Pakistan with its specific focus in Southern region of the Punjab province. The theoretical framework of the study has demonstrated how the customer closely associated behaviors navigate the adoption of the Islamic banking.

Evaluating the Influence of Basel Accord on Banking Sector of Pakistan

The papers aim to investigate how Basel III affected Pakistan's entire banking sector from 2013 to 2018. The requirements and obligations of Basel III are regarded as the most efficient tools for the banking sector. When analyzing the impact of Basel III on the banking industry, three primary considerations are made: financial size, spread, and provision for non-performing loans. Relapse investigations were utilized for checking speculation. We inferred that the general pummel of Basel III on banks is enormous, yet not all banks have totally taken on Basel III. The significance of this research lies in giving important experiences into the viability of global regulatory structures in rising economies' potential. By evaluating the Basel Accord's effect on Pakistan's banking sector, this study adds to a more extensive comprehension of how worldwide guidelines can be adjusted to neighborhood settings and how they can address explicit challenges faced by banks in emerging nations. This analysis not only reveals insight into the operational and vital changes made by Pakistani banks but also gives suggestions for policymakers to upgrade regulatory practices and monetary strength. Eventually, this research aims to illuminate future regulatory changes and work on the flexibility of Pakistan's banking sector in the face of worldwide monetary uncertainties. We propose highlighting semiannually the effects of Basel on the banking industry and conducting a comparison analysis of conventional and Islamic banks.

Profit-loss sharing principle in the Islamic finance industry: Current pattern and future direction

The Islamic banking and finance industry is founded on Islamic principles, with one of its main concepts being Profit-Loss Sharing (PLS). The rapid growth of the industry has led to extensive research on PLS. This study aims to capture the dynamic research landscape on PLS by examining the intellectual network, including the most influential scholars, countries, articles, publishing journals, and frequently discussed topics, as well as suggesting future research directions. We use bibliometric analysis to explore this topic, drawing data from the Scopus database. A total of 421 documents from 1992-2022 were analyzed. The study finds that Malaysia is the most productive country, Kabir Hassan is the most influential scholar, and the Journal of Islamic Accounting is the leading journal in the field. Four main topics are identified: the general theme of PLS, the implementation of PLS in different countries, PLS products, and governance and risk related to PLS. Future research is recommended based on these four topics.

Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks

Investigating the Factors Affecting Corporate Social Responsibility Disclosure in Islamic Banking Evidence from Egyptian and Kuwaiti Islamic Banks

A Comparative Study Of Caudal Epidural Bupivacaine And Midazolam-Bupivacaine Mixture For Post-Operative Analgesia In Children Repairing Congenital Inguinal Hernia

Background: Managing postoperative pain in pediatric anesthesia is challenging, with caudal epidural anesthesia being a preferred technique for its safety and efficacy. Enhancing analgesia duration through adjuvants like midazolam may improve outcomes. Objective: This study compares the effectiveness of caudal epidural bupivacaine alone versus a bupivacainemidazolam mixture in children undergoing repair of congenital inguinal hernia, circumcision, and hypospadias repair, focusing on postoperative analgesia duration and side effects. Materials and Methods: A double-blind randomized controlled trial was conducted at Islami Bank Medical College Hospital from October 2023 to March 2024, involving 50 children aged 2-8 years, divided into two groups: Group A (bupivacaine-midazolam) and Group B (bupivacaine alone). Pain was assessed using the FLACC scale at specified intervals up to 24 hours post-surgery. Results: Group A experienced significantly longer postoperative analgesia (10.72 ± 4.07 hours) compared to Group B (6.13 ± 1.98 hours). Mild pain was more common in Group A (72.7%) than Group B (87.5%), while moderate pain was higher in Group A (27.3%) than Group B (12.5%). Side effects were minimal, with Group A having no side effects and Group B experiencing 8% nausea and vomiting and 4% other side effects. Conclusion: The addition of midazolam to caudal bupivacaine significantly prolongs postoperative analgesia and reduces the need for rescue analgesia in children, with minimal side effects

Top-Down or Bottom-Up? Choosing the Best Path of Management for Waqf-Takaful Death Compensation Product in Malaysia

In Malaysia, the integration of waqf and takaful for death compensation products aims to enhance financial protection within the Islamic finance framework. However, the effectiveness of this integration is influenced by the management approach adopted, either top-down or bottom-up. The top-down approach, driven by high-level government entities such as Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF), promises streamlined processes and uniformity. Conversely, the bottom-up approach involves grassroots-level engagement through individual takaful agents, which emphasizes personalized interactions and alignment with local needs. Despite these theoretical benefits, there is a lack of empirical evidence assessing the practical impact of these approaches on key dimensions such as participant engagement, compliance with Islamic law, implementation speed, and institutional support. This study seeks to address this gap by applying a qualitative research design, including in-depth interviews with experts and comparative analysis methods, to evaluate the advantages and limitations of each approach. The goal is to provide actionable insights for policymakers and practitioners to optimize management strategies and improve the effectiveness and relevance of waqf-takaful death compensation products in Malaysia.

The Effect of Gender Diversity and Expertise of Risk Monitoring Committee on Equity Investment Risk in Islamic Banks

The study of risk in Islamic banks emphasizes more on the general risk of Islamic banks, this general risk in Islamic banks arises from transactions unrelated to special transactions of Islamic banks. The profit and loss sharing system implemented by Islamic banks raises equity investment risk (EIR). This study uses the agency theory approach in explaining EIR. In the agency theory approach, the risk monitoring committee has the responsibility of evaluating and monitoring the risk management in Islamic banks. The characteristics of risk monitoring committee members can affect the capability of the risk monitoring committee to provide risk management assessments and policies and can affect the effectiveness of the risk monitoring committee in carrying out its duties and responsibilities. The study population was 109 Islamic banks spread across 18 countries in ASEAN and the Gulf Cooperation Council, where the sample was observed in 2021 during the peak of COVID-19. The results of this study indicate that the gender diversity of the risk management committee and the risk management monitoring committee’s expertise in accounting/risk management have a significant negative effect on equity investment risk.

Digital Governance and Its Role in the Islamic Economy- Analytical Study

This study investigates the role of digital governance within the Islamic economy, aiming to explore how modern technological advancements can be integrated into Islamic financial institutions while adhering to Sharia law. The research employs an analytical and comparative approach to examine the intersection of digital governance and Islamic economics, focusing on its implications for economic management and institutional transparency. The results indicate that digital governance offers a framework of systems and mechanisms that enhance the efficiency, accountability, and transparency of Islamic institutions. These governance practices, while rooted in the principles of Islamic economics, are essential for the modern adaptation of these institutions, particularly in the global economy. The study concludes that adopting digital governance within Islamic finance can significantly improve the management and operational integrity of these institutions, ensuring their alignment with both religious and modern economic principles.

Correlation of Islamic Financing and Economic Growth through A Panel Data Approach

One of the strengthening of the financial sector is through financing, therefore what factors are needed that can encourage financing growth. This study aims to analyze economic growth, assets and Non-Performing Financing affecting Islamic financing during the period Q1 2017 to Q4 2022. The research went through the unit root test stage, panel data estimation, then panel data regression was selected using the Fixed Effect Model method. Based on the results of the research, it was concluded that economic growth, assets and NPF together affect Islamic financing in Malaysia, Saudi Arabia, Bahrain, the United Arab Emirates and Qatar. Economic growth and assets have a positive and significant influence on financing. Meanwhile, NPF has a negative influence on financing. The higher the NPF will affect the quality of financing, so it can lower the bank's health level.

Innovative and Sustainable Performance of Islamic Bank: Comparing the Financial Ratios between Two Different Organizations in Indonesia

The law that requires every UUS to change into a BUS by 2023 is the background for this research. Financial indicators show that UUS performance is better than BUS so, through this research, the authors will compare the financial performance of Islamic Banks which were previously in the form of UUS, and after changing their business entity to BUS. Currently, in Indonesia, there is thirteen BUS that previously had UUS status. The sampling in this investigation used a purposive sampling technique with two criteria so that two samples were obtained, namely Bank BJB Syariah and Bank BNI Syariah. The observation period was carried out for seven years when the status was UUS and eight years after becoming a BUS. The source of data in this study comes from the financial statements of each bank which contain the ratio of PPAP, FDR, NOM, ROA, and BOPO. This comparative study uses the Mann-Whitney U test non-parametric test analysis technique. The comparative study conducted concluded that there were differences in financial performance before and after the spin-off for the FDR and BOPO ratios, while the PPAP, NOM, and ROA ratios were not found to be different.

The Impact of Internal and External Variables on Non-performing Financing (NPF) of Islamic Banks in Indonesia

The Impact of Internal and External Variables on Non-performing Financing (NPF) of Islamic Banks in Indonesia

The Legal Position of the Indonesian Ulema Council in Applying the Principles of Islamic Law in Islamic Banking Operations in Indonesia

National economic development through the establishment of Islamic Banks is an implementation of Article 29 of the 1945 Constitution of the Republic of Indonesia. The presence of Islamic Banking in the national economy is a strategic legal policy of the government because its operations are based on the principles of Islamic law, namely principles derived from the Qur'an, Hadith, Ijma', and Qiyas. However, in its application, these principles of Islamic law are manifested in the form of fatwas issued by the National Sharia Council-Indonesian Ulema Council (DSN-MUI) as a source of positive law for Islamic banking. Therefore, this study raises legal issues related to the legal position of the Indonesian Ulema Council in the application of sharia principles to Islamic Banking operations in Indonesia. This study aims to analyze and determine the legal position of the Indonesian Ulema Council in the application of sharia principles to Islamic Banking in Indonesia. The research method used is normative research, which provides answers to the problems raised with the perspective of what should be done. The results of the study indicate that the DSN-MUI fatwa has a crucial role as a positive legal basis in the operation of Islamic Banking in Indonesia, although formally it is not a statutory regulation. The implications of this study indicate the importance of recognizing and strengthening the role of the DSN-MUI in the national legal system to ensure compliance of Islamic Banking operations with applicable sharia principles.

THE ADOPTION OF ISLAMIC FINANCE BY CAMEROONIAN SME ENTREPRENEURS: ARE THERE GENDER DISPARITIES?

The recent surge in the global asset value of Islamic finance has pushed Cameroonian policymakers to consider this mode of finance as an important element of the national financial inclusion strategy. This study examines the factors that influence the adoption of Islamic finance by SME entrepreneurs on the one hand and gender differences in adoption on the other hand in Cameroon, a non-Muslim-dominated African country. Based on a sample of 1,358 SME entrepreneurs, a simple logistic model is adopted to analyze the determinants of the decision to adopt Islamic finance while the Fairlie decomposition is afterward employed to test for gender disparities vis-a-vis the adoption of this mode of finance. Results of the logistic regression show that the need to abide by the Sharia law, awareness, attitude, intention, location, and gender positively and significantly affect the decision to patronize the Islamic mode of financing by Cameroonian SME entrepreneurs while subjective norms and age exert negative effects. The results of the Fairlie decomposition show that there exists a mean difference of 8% to the disadvantage of female entrepreneurs concerning the adoption of Islamic finance and that this gap is widened by religious motivation, awareness, intention, and location. Policymakers are encouraged to enhance the level of Islamic finance awareness of SME entrepreneurs, and the sharia compliance of Islamic finance institutions by obliging them to operate under the guidance of qualified sharia boards. These policies should be supported by the implementation of accompanying measures, such as the eradication of societal norms that restrict women's ability to use Islamic finance services.

BOARD STRUCTURE AND ISLAMIC BANK STABILITY: A STANDALONE RISK COMMITTEE MODERATING EFFECT

This study investigates the impact of board attributes on the stability of Islamic banks and whether the presence a standalone risk management committee (SARC) moderates their relation. Applying the feasible generalized least squares (FGLS) regression as well as the two-step system generalized method of moments (GMM) estimator for robustness to a panel sample of 43 Islamic banks across 15 countries over eleven years from 2010 to 2020, we document evidence suggesting that board meetings, board gender diversity and foreign directors do not influence the stability of Islamic banks. Conversely, board members holding doctorate degrees (PhDs) significantly and negatively affect the stability of Islamic banks. In addition, the presence of SARC significantly improves the stability of Islamic banks. The study further finds that SARC partially and positively moderates the effects of board members with PhDs and foreign directors on the stability of Islamic banks.

The Effect of Asset Structure, Bank Size, Profitability, Bank Growth, and Liquidity on Capital Structure of Islamic Banking in Indonesia

This research investigates how different factors such as asset structure, bank size, profitability, bank growth, and liquidity affect the capital structure of Islamic (Sharia) banking in Indonesia. The study focuses on Sharia banks listed on the Indonesian Stock Exchange (BEI) and analyzes data from 3 selected companies using purposive sampling and their monthly reports. The research uses Structural Equation Modeling (SEM) with the SmartPLS program for data analysis. The findings show that asset structure and profitability have a significant impact on the capital structure, while bank size, bank growth, and liquidity do not. The results also reveal that asset structure affects capital structure positively, where an increase in asset structure will also increase capital structure, while profitability affects capital structure negatively, where an increase in profitability will decrease capital structure

Factors Influencing Non-Performing Loans between Islamic and Conventional Banks in Malaysia

Factors Influencing Non-Performing Loans between Islamic and Conventional Banks in Malaysia

THE INFLUENCE OF FINANCING MODEL AND CREDIT RISK ON FINANCIAL STABILITY (STUDY OF ISLAMIC RURAL BANKS IN JAVA ISLAND)

This study examines the impact of profit-sharing financing and profit-margin financing on financial stability of Islamic Rural Banks (IRBs) in Java Island and incorporates credit risk as an intervening variable. Utilizing a panel dataset of 90 registered IRBs operating in Java Island from 2011 to 2021 and applying path analysis, we find that profit margin financing has a significant negative impact on the financial stability of IRBs, both directly and indirectly through its association with credit risk. In contrast, profit sharing financing shows a positive and significant direct effect on financial stability. This result implies that profit margin financing may pose a greater risk to the financial stability of IRBs than profit-sharing financing. The study highlights the need for IRBs to carefully manage their financing strategies, taking into consideration the potential risks associated with profit margin financing. Effective risk management practices are crucial for mitigating credit risk and ensuring the overall stability of IRBs. The research emphasizes the importance of a selective approach in providing profit-sharing financing to mitigate potential risks. It also underscores the significance of striking a balance between profitability and credit risk management to ensure the long-term stability of IRBs.

DO TRUST AND CUSTOMER INTIMACY AFFECT CUSTOMER LOYALTY?

This study aims to identify factors influencing customer loyalty in Islamic Banking customers. One hundred seventy respondents filled out the questionnaire online. The sample collection techniques were purposive sampling and the Structure Equation Model (SEM). The results indicated that customer trust and intimacy positively affect customer loyalty.