Islamic Banks Research Articles

Banks’ financial performance analysis: an experience from an Islamic economy

Purpose This study aims to analyze the performance efficiency of private commercial banks in Iran as an Islamic economy. Design/methodology/approach A meticulously chosen sample comprising 15 private banks from 2020 to 2023 has been examined. This study uses data envelopment analysis (DEA) models, specifically the Constant Returns to Scale (CCR) with input orientation and the Variable Returns to Scale (BCC) with input orientation, to scrutinize performance efficiency relative to the banking sector’s average efficiency ratio. Findings The findings indicate that the performance of decision making units is superior in BCC models when determined with CCR models. The CCR-I analysis spanning 2020–2023 reveals that only two banks consistently demonstrated full efficiency performance, attaining a 100% efficiency score across all years. The observed fluctuations in banks’ efficiency performance are attributed to disparities between the growth or reduction in inputs and the corresponding augmentation or diminution in outputs. Research limitations/implications This paper has some limitations. First, selecting inputs and outputs for the DEA models is crucial, as this study’s results are sensitive to these choices. Second, this research focused exclusively on the efficiency of private banks and did not assess the efficiency of governmental banks. Practical implications The insights from this study can be valuable for bank managers in evaluating performance, regulators in maintaining financial stability and investors and market analysts in enhancing their investment strategies through bank performance analysis. Originality/value To the best of the authors’ knowledge, this study is the first to propose a framework for evaluating and forecasting commercial bank performance in an Islamic background. This model for prediction performance would be helpful for future research on the banking sector. In addition to improving Islamic banking literature, this research contributes to the literature regarding the analysis methods usually used.

Pengaruh Literasi Keuangan Syariah, Islamic Branding Terhadap Minat Menjadi Nasabah Bank

The banking sector currently dominates the economic growth of many countries, both developed and developing. Increased industrial growth has also occurred in the Indonesian Islamic banking industry. This study aimed to examine the effect of Islamic financial literacy and Islamic branding on the interest in becoming a customer of Bank Mega Syariah KC Mataram. This research applied a quantitative method with regression analysis. The sampling technique used was purposive sampling, with 55 respondents who were registered customers at Bank Syariah Indonesia. Data were analyzed using multiple linear regression with the SPSS 25 program. The analysis results showed that Islamic financial literacy and Islamic branding partially influenced the interest in becoming a customer at Bank Mega Syariah KC Mataram. The study found an R² value of 0.876 (87.6%), indicating that the interest in becoming a customer is influenced by Islamic financial literacy and Islamic branding by 87.6%, with the remaining 12.4% influenced by other factors outside this study.

The Role of Sharia Economics in Realizing Sustainable Development in Indonesia

This study provides a comprehensive bibliometric analysis of the role of Sharia economics in promoting sustainable development in Indonesia. By examining 810 publications between 2006 and 2024, the study explores key research trends, themes, and collaborations in the literature. The analysis reveals a significant increase in research activity after 2020, with a focus on aligning Islamic finance principles with sustainable development goals (SDGs), particularly in areas such as poverty alleviation, economic growth, and green finance. Keyword co-occurrence visualizations highlight the importance of concepts such as "green sukuk," "economic growth," and "poverty alleviation," while co-authorship networks show concentrated collaboration within small research groups. The findings suggest that Sharia economics has substantial potential to contribute to SDGs, particularly through instruments like green sukuk and waqf, but greater interdisciplinary collaboration and exploration of emerging topics like technology and post-pandemic recovery are needed. These insights have significant implications for both academic research and policy-making in Indonesia and beyond.

NANOCREDIT FOR EMPOWERING THE UNDERPRIVILEGED: A COMPREHENSIVE SYSTEMATIC REVIEW

Poverty is a universal reality that takes various forms worldwide. It is considered the most detrimental economic and social issue, being the root cause of human rights violations due to its destructive effects on individuals and society. In the modern era, poverty has become a major global issue, hindering economic and human development and leading to deprivation of well-being. Any credit type, micro or nano credit, must be implemented well to help the poor. Recently, there has been an interest in nanocredit. Although there are limited studies on nanocredit, there have been some attempts to review the topic. In contrast to other research, this study adopts a different methodology to thoroughly review the literature on the development of nanocredit to address the innovative and reliable tools that are dependable financial inclusion for the underprivileged. This study is being conducted to comprehensively review and analyse current research on nanocredit. Scopus, Web of Science (WoS), Emerald Insights, and Google Scholar index the reviewed literature from 2000 to 2022 for published article access. Studies have presented that nanocredit is a new paradigm in the lending industry with fewer requirements and bureaucracy. Although it is still lacking in fully complying with Shariah guidelines, nanocredit is a saviour for the poor in improving their quality of life. In simple understanding, nanocredit should be the bridge that connects Islamic finance and Islamic philanthropy.

The Effect of Sharia Compliance, Attitudes, Satisfaction and Perceived Usefulness on Continued Intention to Use Sharia Digital Banking: A Study of Muslim Customer Behavior

In activities related to financial services, a Muslim has a tendency to choose Shariah-compliant services. The presence of digital banking services will certainly not escape this tendency but in a rational view, this tendency is often challenged. For this reason, research is needed that relates the behavior of a Muslim in choosing digital banking services that not only comply with sharia provisions but also provide benefits that can be felt directly. This study integrates the factors recognized in technology continuance theory with the prevailing values in Muslim behavior to provide results that match the digital characteristics of Islamic banking. Data were collected from 183 Muslim users of Islamic digital banking services in Java, Indonesia and then tested with structural equation modeling (SEM). The research findings show that sharia compliance and perceived usefulness directly have no effect on continuance intention to use Islamic digital banking services, but indirectly through attitude mediation, these two factors have a significant effect. In the direct effect, satisfaction is the most determinant factor in influencing continuance intention to use, while perceived usefulness is the most determinant factor in influencing attitude. Then in the indirect effect, attitude has a full mediation role on the effect of perceived usefulness on continuance intention to use, and partial mediation of the effect of sharia compliance on continuance intention to use

Faktor – Faktor yang Mempengaruhi Return on Asset PT. Bank Syariah Indonesia KCP Iskandar Muda

Analysis of profitability developments is one of the indicators carried out by banks to see or detect the magnitude of changes in the results of transactions carried out. Among them, measuring the level of profitability by measuring return on assets (ROA). The reason for using Return on Assets (ROA) to measure bank profitability is because Bank Indonesia, as a banking supervisor, prioritizes the profitability of a bank as measured by assets. Most of its funds come from public deposits. The higher the bank's profit, the better the bank's position on the use of assets. Therefore, ROA is used in this study as an indicator of the financial performance of Islamic banks. Keyword: Profitability, Return on Assets, Islamic Bank

News Sentiment and Liquidity Risk Forecasting: Insights from Iranian Banks

This study addresses the critical challenge of predicting liquidity risk in the banking sector, as emphasized by the Basel Committee on Banking Supervision. Liquidity risk serves as a key metric for evaluating a bank’s short-term resilience to liquidity shocks. Despite limited prior research, particularly in anticipating upcoming positions of bank liquidity risk, especially in Iranian banks with high liquidity risk, this study aimed to develop an AI-based model to predict the liquidity coverage ratio (LCR) under Basel III reforms, focusing on its direction (up, down, stable) rather than on exact values, thus distinguishing itself from previous studies. The research objectively explores the influence of external signals, particularly news sentiment, on liquidity prediction, through novel data augmentation, supported by empirical research, as qualitative factors to build a model predicting LCR positions using AI techniques such as deep and convolutional neural networks. Focused on a semi-private Islamic bank in Iran incorporating 4,288,829 Persian economic news articles from 2004 to 2020, this study compared various AI algorithms. It revealed that real-time news content offers valuable insights into impending changes in LCR, particularly in Islamic banks with elevated liquidity risks, achieving a predictive accuracy of 88.6%. This discovery underscores the importance of complementing traditional qualitative metrics with contemporary news sentiments as a signal, particularly when traditional measures require time-consuming data preparation, offering a promising avenue for risk managers seeking more robust liquidity risk forecasts.

Management and monitoring of anesthesia during the perioperative period in a Tertiary Hospital in Bangladesh

Background: Anesthesia management is crucial for ensuring patient safety and optimal surgical outcomes during the perioperative period. In Bangladesh, the challenges faced in managing and monitoring anesthesia in tertiary care hospitals necessitate a comprehensive evaluation of current practices. This study aims to assess the anesthetic management protocols and monitoring strategies employed in a tertiary hospital in Bangladesh. Methods: This observational study was conducted in Islami Bank Medical College Hospital, Rajshahi, Bangladesh from July to December 2023. Data were collected from patients undergoing various surgical procedures requiring anesthesia. The anesthetic techniques used, intraoperative monitoring parameters, and any complications encountered were recorded. The study included a review of anesthesia charts, patient records, and interviews with anesthesia providers. Statistical analysis was performed to identify trends and correlations. Results: A total of 200 patients were included in the study. The most commonly used anesthetic technique was general anesthesia (65%), followed by regional anesthesia (30%) and local anesthesia (5%). Intraoperative monitoring parameters included heart rate, blood pressure, oxygen saturation, and end-tidal carbon dioxide levels, which were consistently documented in 95% of cases. Complications occurred in 10% of patients, primarily involving respiratory issues and cardiovascular instability. Proper adherence to monitoring protocols significantly reduced the incidence of complications. Conclusion: Effective management and monitoring of anesthesia during the perioperative period are vital for patient safety in a tertiary hospital setting. The study highlights the importance of standardized protocols and continuous monitoring to minimize complications. Recommendations for improving anesthetic practices include regular training for anesthesia providers and enhancing monitoring infrastructure to ensure optimal patient care.

Interdependence of halal entrepreneurship and Islamic finance for creating a strong halal ecosystem

Purpose Ethical entrepreneurship and financing models based on Islamic principles are insufficiently researched and discussed in the emerging plural economic landscape. So far, Islamic theorists have made commendable efforts in this direction. To fill the knowledge gaps, this study aims to explore more rigorously the interdependence of halal entrepreneurship and Islamic finance in creating a strong halal ecosystem. Design/methodology/approach Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, a systematic literature review (SLR) of 33 articles from 2001 to 2024 was conducted to answer three research questions. Publications were obtained using purposive sampling from the Scopus database. They were selected based on the ranking of high-quality journals, global coverage relevance to research and base years of publications. Findings Three key findings emerged from the SLR using the PRISMA protocol. First, halal entrepreneurship and Islamic finance complement each other by providing Shari’ah-compliant financial instruments, fostering ethical practices, enhancing market reach and ensuring business operations adhere to Islamic principles, thereby creating a cohesive halal ecosystem. Second, the strategic integration of halal entrepreneurship and Islamic finance – through innovation, sustainability practices, Shari’ah-compliant products, effective marketing and regulatory support – promotes economic growth, social welfare and sustainable development within the halal ecosystem. Third, Maqasid-ul Shari’ah principles guide halal entrepreneurship and Islamic finance by ensuring ethical standards, promoting social justice, emphasizing sustainability and ensuring that business and financial practices benefit society and adhere to Islamic ethical standards. These findings aid in developing a theoretically grounded conceptual framework for future empirical investigation. Practical implications Practically, policymakers, Islamic financial institutions and halal entrepreneurs can leverage this integrated approach to drive economic growth, social welfare and sustainable development, aligning operations with Maqasid-ul Shari’ah to ensure ethical standards and societal benefits. In addition, the findings aid in developing a theoretically grounded conceptual framework for future empirical investigation, both theoretically and methodologically. Originality/value Given the paucity of studies in this multidisciplinary area, this paper offers new insights into the interdependence of halal entrepreneurship and Islamic finance, grounded in the finance–growth nexus theory and Maqasid-ul Shari’ah principles. Unlike other exploratory studies, this research presents a theoretically grounded conceptual framework, paving the way for future empirical investigations.

Uses of the Tawarruq Formula in Islamic Banks

Islamic banks, since their inception, have been working to provide financial services to Muslims in particular, as these services must comply with the provisions of Islamic law, and among the most important institutions that request financial services from banks and are in dire need of that are companies of all kinds and forms, and in most cases, companies rely on Its capital and cash flow to banks to facilitate the management of its various activities, and Islamic companies cannot deal with conventional banks; So, these services are requested from Islamic banks, and the services of Islamic banks are the same as the services of traditional banks, but with a jurisprudential adaptation or by using the exits to get out of the distress of usury, and from the distress of the need for real action for it, and according to the companies’ request and needs, the banks find exits and solutions to meet their request by the principles and rules of Sharia. Islamic and satisfy the desires of companies, and the process of evaluation of these adaptations is one of the necessary things in this era; Accordingly, the researchers tried to evaluate this adaptation in one of the Islamic banks in part of its various services, which is Kuwait finance house in Malaysia.

Analysis of the Effect of Sharia Bank Financing and Investment on Economic Growth through Micro, Small and Medium Enterprises (MSMEs) Credit

This study seeks to examine the impact of sharia bank financing and investment on economic growth in Indonesia by analyzing lending to micro, small, and medium companies (MSMEs) utilizing time series data. This research characterizes economic growth through the Gross Regional Domestic Product (GRDP) for each province in Indonesia. This study utilizes secondary data from 2011 to 2022 sourced from BPS, OJK, and Bank Indonesia, analyzed using the Path Application. This report assesses the direct and indirect funding of Islamic banks and their involvement in economic growth via Micro, Small, and Medium Enterprises (MSME) credit. The research findings indicate that the Islamic bank funding variable does not significantly influence the MSME credit variable; nevertheless, the investment variable does have a substantial impact on the Micro, Small, and Medium Enterprises (MSME) credit variable.

Efficiency Of Sharia Commercial Banks In Indonesia (Two-Stage Analysis)

This research is motivated by the importance of efficiency in the banking industry, especially in the Islamic banking sector which has a vital role in the Indonesian economy. This study aims to analyze the efficiency of Islamic commercial banks in Indonesia using a two-stage analysis approach. The method used is divided into 2 stages, the first stage is to measure efficiency using the Data Envelopment Analysis (DEA) method to assess the operational performance of banks. The second stage is to analyze the factors that influence efficiency through panel regression. The results of the study indicate that although there are variations in the level of efficiency between banks, factors such as bank size, capitalization, and information technology have a significant influence on efficiency. These findings are expected to provide insight for stakeholders in improving the performance of Islamic banks in Indonesia

The Effect of Wadiah Savings and Problem Financing (NPF) in the 'Precise Sharia Financing' Product on the Profitability Level of PT. Bank BTPN Syariah Tbk for the Period 2015 - 2023

This study aims to empirically examine the effect of wadi'ah savings and non-performing financing (NPF) on profitability (ROA) in the Precise Syariah Financing product at PT Bank BTPN Syariah during the period 2015 - 2023. Using an associative quantitative approach. The study conducted by researchers using secondary data derived from BTPN Syariah quarterly financial statements for the period 2015 - 2023. The data analysis technique used multiple linear regression analysis through Eviews 12 as a data processing tool. The study results showed that an increase in wadi'ah savings significantly positively contributed to an increase in ROA, while an increase in NPF had a significant negative effect. The regression model developed was able to explain 71.15% of ROA variability. This finding explains that an increase in wadi'ah savings tends to increase profitability, while an increase in NPF tends to decrease the level of profitability of BTPN Syariah. The implication is that banking management needs to focus on managing the increase in wadi'ah savings and improving the quality of financing to increase profitability. This study provides important insights for Islamic banking management in optimizing financial performance, especially in the context of the Tepat Pembiayaan Syariah product and contributes to the literature on factors affecting the profitability of Islamic banks in Indonesia. This study contributes to the Islamic banking literature, but has limitations in terms of the research period and variables used. Future research is expected to expand the scope of variables and periods in the study to obtain generalized results.

Determinant Factors of The Frequency Of Fraud Occurance: Study on Sharia Banking in Indonesia

This study investigates the determinant factors of the frequency of fraud on sharia banking in Indonesia. This study employed frequency of fraud occurance as dependent variable, quality of islamic corporate governance implemantation and bank complexity as independent variable. This research is a quantitative research with the type of data used, namely secondary data obtained from the official website of each bank and the OJK website. The data analysis used is multiple regression analysis using the E-Views 10 application. The results of this study show that partially the variable quality of the implementation of Islamic corporate governance has a positive effect on the frequency of fraud occurance and bank complexity does not have a significant positive effect on the frequency of fraud occurance.

Assessment of Inflammatory Markers (CBC and CRP) and their Impact on Severity and Recurrence of Pneumonia in Under-Five Children

Background: Pneumonia remains a leading cause of morbidity and mortality in children under five. This study evaluates the association between inflammatory markers complete blood count (CBC) parameters and C-reactive protein (CRP) levels and pneumonia severity and recurrence. Methods: A prospective study was conducted with 110 children diagnosed with pneumonia at Dr. Sirajul Islam Medical College & Hospital and Islami Bank Hospital, Motijheel, Dhaka, from January to December 2023. Clinical assessments included demographic data, pneumonia severity classification, and inflammatory marker measurements. Results: The study population comprised 62 males (56.4%) and 48 females (43.6%), with a mean age of 24.6 months. Inflammatory marker analysis revealed significant differences in WBC count, neutrophil percentage, lymphocyte percentage, and CRP levels across mild, moderate, and severe pneumonia groups (p < 0.001). Higher levels of WBC count (14,500 ± 3,500), neutrophils (72.2 ± 8.6%), and CRP (38.5 ± 11.2) were observed in patients with pneumonia recurrence compared to those without recurrence. Multivariate regression analysis identified WBC count, neutrophil count, and CRP levels as significant predictors of pneumonia recurrence. Conclusion: Elevated inflammatory markers, particularly CBC parameters and CRP levels, correlate with increased severity and recurrence of pneumonia in young children. Monitoring these markers can aid in early identification and management of at-risk pediatric patients, potentially improving clinical outcomes. Further research is needed to explore additional biomarkers and their implications in pediatric pneumonia management.

The Determinants of Bank’s Liquidity: Comparative Analysis From Global Islamic Banks and Conventional Banks

This study investigates the determinants of bank liquidity in both Islamic and Conventional banks across 15 countries, focusing on key variables such as profitability, capital adequacy, bank size, and credit risk. Utilizing data from 107 Islamic banks and 506 Conventional banks spanning from 2013 to 2022, the analysis reveals significant differences in liquidity management between the two banking systems. The Random Effect Model (REM) was employed based on the Hausman test results to ensure robustness. The findings indicate that profitability negatively impacts liquidity in Islamic banks, likely due to investments in less liquid, Sharia-compliant assets, while it positively influences liquidity in Conventional banks, where profits are often reinvested into liquid assets. Capital adequacy emerges as a crucial determinant of liquidity in both bank types, highlighting the importance of maintaining strong capital buffers. The study also finds that credit risk significantly reduces liquidity in Conventional banks, whereas it has a lesser impact on Islamic banks. These insights contribute to a deeper understanding of liquidity management practices in Islamic and Conventional banks, offering valuable implications for bank managers, policymakers, and regulators.

Islamic bank stability and efficiency: A cross-country analysis

Purpose ― The study investigates the impact of the efficiency of Islamic banks on banking stability. Method ― A panel data analysis using the Least Square Dummy Variable Corrected (LSDVC) method is employed to examine the impact of efficiency on banking stability in Islamic banks. The study has a sample of 54 Islamic banks across eight countries from 2013 to 2021.Findings ― The findings reveal that the efficiency of Islamic banks has a positive and significant effect on banking stability. In addition, financial turmoil negatively and significantly affects the stability of Islamic banks but does not significantly affect institutional development. Additionally, financial turmoil can influence how effectively Islamic banks manage their businesses in response to banking stability. The outcomes are robust across various robustness methods. Implications ― The results imply that the efficiency of Islamic banks has a pivotal role in banking stability, considering the efficiency level. To ensure the stability of Islamic banks, practitioners and regulators of Islamic banks have to achieve and maintain the efficiency of Islamic banks by implementing the required policies and guidelines.Originality/Value ― Previous studies examining the impact of Islamic banks' efficiency on banking stability remain limited. The paper fills the research gap by examining how Islamic bank efficiency affects banking stability, considering the effects of financial turmoil and institutional development.

Jurisprudential Rulings Related To Digital Currencies And Linguistic Connotations/ الأحكام الفقهية المتعلقة بالعملات الرقمية ودلالاتها اللغوية

It aims to describe of the provisions of Islamic Sharia of encrypted digital currencies and its linguistic implications. Using a scientific jurisprudential methodology. It also discusses the search for the credibility of encrypted digital currencies that comply with the provisions of Islamic Sharia. The results that production is a basis in addition to the value that financing contributes and its linguistic implications, with the most prominent costs as high. Efficiency of Islamic financial financial services, and that the engineering of financial products is based on innovations and creating new solutions for financial management or reproducing the trader in traditional financial finance, with the participation of a strong entitlement basis and participation in many of the basis of effective management of Islamic finance systems, and a statement of the trading rule in those currencies, This is to achieve economic fundamentals and legal credibility and its linguistic implications.

Social History of Islamic Banking and First Example: Bank-I Awqāf

The cash waqf was a special category of Islamic endowment and played an important role in the economic/financial history of the Ottoman Empire. As such, it can be considered an important Islamic financial institution that facilitated the flow of funds from those who could save to those who needed capital, i.e. primarily entrepreneurs as well as the general public. This institution is also considered one of the most important Ottoman contributions to Islamic civilisations. Ottoman scholars have been discussing Islamic banking since Suleiman the Magnificent (1574). Islamic banking was known in the Ottoman state as Mu'amalah al-Shar'iyyah, which we can simply call murâbahah. The Ottoman state established the "Awariḍ Akcasi Sandiklari", which means "The Box of Waqf Money". Ottoman scholars preferred "Mudaraba" and murâbahah or qarḍ. This practice continued with the establishment of the Awqaf Bank in 1914. On 1914, the Ottoman Ministry of Awqaf decided to establish the first Islamic bank, Bank-i Ewqaf, with its central branch in Istanbul and possible new branches in all provinces. The bank's system was entirely Mu'amalah al-Shar'iyyah or simply Murâbahah. This bank had the right to issue bonds, certificates, transfer money, etc.

Pengaruh Tingkat Pengetahuan Masyarakat Terhadap Minat Menggunakan Produk Bank Syariah (Studi pada Masyarakat Desa Carebbu, Kec. Awangpone, Kab. Bone)

Public knowledge about Islamic banks will also affect the public's view of Islamic banks themselves. Interest is an interest in something that can cause feelings of pleasure, interest, and prosperity. This study discusses the influence of the level of public knowledge on interest in using Islamic bank products. This research was conducted with the aim of finding out the level of public knowledge about using Islamic bank products. This study uses a quantitative research method. The data of this study used primary data with the distribution of questionnaires as many as 97 respondents. The sampling technique uses a simple random sampling technique. The results of this study show that there is a partial effect between the level of public knowledge on the interest in using Islamic bank products with a value of 15,280. Meanwhile, the coefficient test obtained a score of 70.8% and the rest was influenced by other factors. Thus, a small number of related variables are explained by the independent variables used in the study.