Islamic Banking Assets Research Articles

Why Non-Muslims Become Customers of Islamic Banking?

The growth of Islamic bank assets in North Sulawesi in December 2020 reached 23.44%, even though the non-Muslim population reached 61.53%. One Islamic Bank, Manado branch, has more non-Muslim customers than Muslim customers, so it is interesting to research. This research aims to reveal the factors that influence their decision to become customers of Islamic banks. The data collection methods used in this study were observation, interviews, and documentation to fourteen people consisting of non-Muslim customers of Bank Muamalat Indonesia and Bank Syariah Indonesia Manado Branch. The analysis technique is through reduction and presentation of data to determine conclusions. The results of the study found. They become customers of Islamic banks because of the service, price/cost, product, facilities, references, and benefits. This research can be used as evaluation material and input for the Islamic banking industry.

ANALISIS PERKEMBANGAN SEKTOR KEUANGAN TERHADAP PERTUMBUHAN EKONOMI DI NEGARA ISLAM

This study analyzes the development of the financial sector on economic growth in Islamic countries in twelve Islamic countries for the period of 2011-2018. This study aims to determine the effect of the sector from conventional and sharia banking or the whole on economic growth in Islamic countries and from the Islamic finance sector to economic growth in Islamic countries. This study applied panel data to estimate empirically involving 12 Islamic countries during the 2011-2018 period. This study reveals that the fixed Effect model is the best model to explain the effect of the independent variables as a whole and specifically the Islamic finance sector on the dependent variable. Overall, the results of this study indicate that the variables of interest rates, total assets of conventional banks, financing and total assets of Islamic banks have no effect on economic growth. Meanwhile, the deposit variable has a negative effect and the number of Islamic banks has a positive effect on economic growth. Furthermore, the test for the Islamic finance sector on economic growth, the financing variable and the number of sharia offices have a significant positive effect on economic growth. For the variable total assets of Islamic banks has no effect on economic growth.

The impact of Islamic banking model and Islamic financial development on bank performance: evidence from dual banking economies

PurposeThe purpose of this study is to develop an Islamic Banking Index representing the Islamic banking model and to investigate its impact on the performance of Islamic and conventional banks. This study also analyzes the impact of Islamic financial development on bank performance.Design/methodology/approachThe authors collected the data from 23 countries for the period from 2010 to 2018 and developed a composite Islamic Banking Index. The authors applied the generalized method of moments on 3,542 bank-year observations for both Islamic and conventional banks to analyze the impact of the Islamic Banking Index on bank performance. The results of the study are robust to time-fixed effects, country-level time-varying factors and endogeneity issues.FindingsThe authors found that Islamic Banking Index positively contributes to the return on assets (ROAit) of Islamic banks only. This impact becomes highly significant in countries with comparatively higher Islamic financial development. This finding suggests that the Islamic financial development in a country provides a supportive operating environment to Islamic banks and increases their performance. The authors also found that Islamic Banking Index positively contributes to the return on equity (ROEit) of both types of banks.Practical implicationsThe authors argue that moving away from interest-based products and focusing more on diversified portfolios can boost the performance of both types of banks without increasing their risk levels.Originality/valueTo the best of the authors’ knowledge, this is the first study that develops a composite Islamic Banking Index based on differentiating factors of the Islamic banking model and investigates the impact of Islamic Banking Index and Islamic financial development on bank performance.

PENGARUH BOPO, NPF, ROA DAN INFLASI TERHADAP ASET PERBANKAN SYARIAH DI INDONESIA

The growth of Islamic banking assets in Indonesia has experienced a very significant growth. The purpose of this study is to analyze the internal and external factors that influence this growth. This research method uses a quantitative design with a causal approach. Internal data sources use Islamic bank financial reports for the 2016-2020 period and external data, namely inflation. The sampling technique was determined by purposive sampling method, namely 7 Islamic Commercial Banks. The results showed that the internal factors NPF and ROA had no significant effect on assets. In contrast, BOPO has a significant effect on assets. External factors, inflation have a significant effect on Islamic banking assets.

“PENGARUH PENERBITAN SUKUK TERHADAP KINERJA KEUANGAN BANK UMUM SYARIAH DI INDONESIA”

The Effect of Sukuk Issuance on the Financial Performance of Islamic Banking in Indonesia by using the Return On Asset (ROA) ratio to measure the profit of a company from the return on assets and return on equity as measured by Return On Equity (ROE). This study uses a linear regression analysis method where the dependent variables are ROA and ROE, and the independent variable is the issuance of sukuk. The results show that the issuance of sukuk does not have a significant effect on the Return On Assets (ROA) of Islamic commercial banks registered with the OJK. but the issuance of sukuk has a significant effect on the company's Return On Equity (ROE). Islamic general banking that is registered with the Financial Services Authority”.

Strengthening Integrated Inclusive System, Creates The Inclusive Islamic Banking Industry In Indonesia

Economic growth in Indonesia has averaged about 6% since 2008. Shariah- compliant financial service providers currently account for only 4.5% of total banking sector assets. Between 2008 and 2012, Islamic bank assets tripled, increasing by an average of 31.5% annually. Strong growth in the past five years was helped by the Shairah Banking Law introduced in July 2008. Since then, the number of Islamic banking outlets has increased from 241 to 517, comprising 11 fully Shariah-compliant banks, 24 Islamic banking units and 158 Shariah-compliant rural banks. Islamic bank’s network has spread with the number offices rising at a rate of 27% year-on-year. Community Service Responsibility (CSR), banking institutions should have to take part in social activities, integrated with the society, and "be part of non-Muslims". Blending in the sense of helping or supporting their programs that are good and useful, such as being a sponsorship or held a charity eventAs a country with largest Muslim population in the world, Indonesia is considered by global world, multiculturalism in Indonesia makes Islamic banking should be inclus ive. Inclusive Integrated System is one way to eliminate exclusivity Islamic banking which still there, the improvement in terms of branding, Corporate Social Responsibility (CSR), socialization, services, and product innovation

Analysis of the Effect of Exchange Value, Inflation, Product Sharing and Gross Domestic Products on Development Sharia Banking Assets in Indonesia

Islamic banks have had a significant development in assets, where during the last ten years the assets of Islamic banks reached 524 trillion rupiah in 2019. However, although the number of assets tends to increase, the percentage of Islamic bank assets grew slowly from 2016 to 2019. It was recorded that the growth of Islamic bank assets in 2016 grew by 22.10% (yoy) and finally in 2019 it grew by 9.93% (yoy), in line with the slowdown in financing channeled by Islamic banks. Banks in their operational activities cannot be separated from the influence of economic conditions. In this study, using analysis from outside the company, namely by using analysis of the macroeconomic environment. Macroeconomic variables used are the exchange rate, inflation, and Gross Domestic Product (GDP), where these three factors are the impact of the global financial crisis in 2008, and greatly affect the condition of the Indonesian economy. As well as the internal factors of the bank itself, namely profit sharing. The purpose of this study is to determine how much influence the exchange rate, inflation, profit sharing, and GDP both partially and simultaneously affect the development of Islamic bank assets in Indonesia. This type of research is quantitative research with panel data. This study uses panel data regression analysis techniques, namely using data combining cross section and time series, where this research is carried out using the common effect, fixed effect and random effect model specification test using the Chow test and the Hausman test. The population and sample of this study are the 10th quarterly financial reports of Islamic commercial banks in Indonesia using purposive sampling technique. The model chosen in this study is the Fixed Effect Model (FEM). The results showed that partially the exchange rate and inflation variables had a positive but insignificant effect on the development of Islamic bank assets, while the profit sharing variables and gross domestic product had a positive and significant effect on the development of Islamic bank assets. While simultaneously the exchange rate, GDP, inflation and profit sharing variables have a positive and significant effect on the development of Islamic bank assets. Keywords: Exchange Rate, Inflation, Profit Sharing, GDP and Asset Development.

The Effect of Financial and Non-Financial Indicators on the Profitability of Islamic Commercial Banks in Indonesia

This study aims to analyze the influence of financial indicators (CAR, FDR, BOPO, NIM, NPF) and non-financial (number of bank offices, market share, GCG, CSR) on profitability that is proxied by Return on Assets (ROA) of Islamic Banks in 2014 -2018. The data source used is secondary data from 2014-2018. Data analysis techniques used are descriptive analysis, multiple linear regression analysis and the classic assumption test. Findings. The results of the study are that CAR does not have a significant negative effect. FDR does not have a significant negative directional effect. BOPO has a significant negative effect. NIM has a positive positive significant effect. NPF has a significant negative effect. The number of bank offices has no significant positive effect. Market share does not have a significant negative directional effect. GCG does not have a significant negative effect. CSR has a significant negative effect. The adjusted R2 value is 73.21% while the remaining 26.79% is influenced by other variables outside the study so the researcher should further add other variables.

The THE EFFECT OF MUDHARABAH FINANCING ON THE ROA (RETURN ON ASSET) IN SHARIA COMMERCIAL BANKS FOR THE PERIOD 2014-2019

The development of the sharia economy in Indonesia continues to experience rapid development, especially in the banking sector. Where the banking world is given a great opportunity by the government to carry out its business activities based on sharia principles. As a financial institution, Islamic banks must have differences with conventional banks, especially in terms of financing. Islamic banks are more focused on financing with the principle of profit sharing which is expected to be able to meet the criteria of liquidity, profitability, and solvency. To achieve high profitability, funds are required in appropriate financing. One of the ratios to measure the level of profitability is the Return On Asset (ROA) ratio. The purpose of this study is to determine whether there is an effect of Mudharabah financing on ROA generated by Islamic Commercial Banks for the 2014-2019 Period.
 This research method is included in the type of quantitative research with an associative approach. Population is taken from the annual report of 14 Islamic Commercial Banks. The sampling technique used simple random sampling. The research sample was obtained in the form of the annual financial reports of 5 Islamic Commercial Banks for the period 2014-2019. Where the data collection uses secondary data obtained from the Banking Statistic Report published by the Financial Services Authority (OJK) and the annual Financial Report published by each Islamic Commercial Bank.
 The results of testing the regression coefficients by coefficients obtained the sig value of mudharabah financing of 0.717 > 0.05. This means that the independent variable mudharabah has no significant effect on the dependent variable Return on Assets (ROA). So this shows that Ho is accepted and Ha is rejected, with the conclusion that partially mudharabah financing has no significant effect on the Return on Assets (ROA) of Islamic Commercial Banks for the 2014-2019 period.

The Effect of Corporate Social Responsibility and Intellectual Capital on Business Performance of the Sharia Banks in Indonesia

The objective of this study is to evaluate and analyze 1) the effect of corporate social responsibility on the business performance of Islamic banks in Indonesia, 2) the effect of intellectual capital on the business performance of Islamic banks in Indonesia and 3) the mutual effects of the corporate social responsibility and the intellectual capital on the business performance of Islamic banks in Indonesia. The research type of this study was causative research. Data used in this study was secondary data. The object of this research was the report on the corporate social responsibility and the annual financial statements of Islamic banks in Indonesia during the 2009 to 2017 period. In testing the hypothesis, the technique of in data analysis was the multiple regression analysis by means of the SPSS software. The results showed that the intellectual capital (Value Added Intellectual Coefficient) had a positive and significant effect on the bank performance (Return on Assets) of Islamic banks. The corporate social responsibility had a negative and insignificant effect on bank performance (Return on Assets) of Islamic banks. The corporate social responsibility and intellectual capital mutually and significantly affect the business performance of Islamic banks in Indonesia.

Market Share Bank Syariah Terhadap Institusi Keuangan Syariah di Indonesia

Sharia banking is a sharia financial institution that is considered to have contributed to the national economy. Judging from the value of the market share owned by Islamic banking, it is still relatively low compared to Malaysia. This study aims to determine the effect of Islamic capital market products and Islamic banking on the market share of Islamic banking assets in Indonesia. The Islamic capital market products used are in the form of Islamic stocks, corporate sukuk and Islamic mutual funds. Meanwhile, in Islamic banking, there are Islamic demand deposits, Islamic savings and Islamic deposits. Empirically the focus of this research is using monthly time series data from January 2014 to December 2019. This study uses the Vector Error Correction Model (VECM) analysis method. The estimation results of this study indicate that in the long term, corporate sukuk, sharia demand deposits and Islamic savings have a positive and significant effect on the market share of Islamic banking assets in Indonesia. Meanwhile, Islamic mutual funds and Islamic deposits have a negative and significant effect. Meanwhile, Islamic stocks have a negative and insignificant effect on the market share of Islamic banking assets in Indonesia. On the other hand, in the short term only Islamic deposits have a positive and significant effect. Corporate sukuk has a positive and insignificant effect, while Islamic stocks, Islamic mutual funds, Islamic demand deposits and Islamic savings have a negative and insignificant effect on the market share of Islamic banking assets in Indonesia.

The Influence of Exchange Rate, Inflation, For the Results of the Development Assets of Islamic Banks

This study aims to determine how much influence the exchange rate, inflation, for the results of partial and simultaneous influence on the development of the assets of islamic banks in Indonesia. This study using the technique of regression analysis of panel data, i.e. using data pooling cross section and time series, where this research was conducted by using test specifications model common effect and fixed effect using the test chow test and hausman. The population and sample of this research is financial statement quarter 10 sharia commercial banks and sharia business units that exist in Indonesia. The Model chosen in this study is the Fixed Effect Model (FEM). The results showed that the partial variable exchange rate and inflation have a positive but not significant to the development of the assets of islamic banks, while the variable for the result and significant positive effect on the development of the assets of islamic banks. While simultaneously the variables of exchange rate, inflation, and for the results and significant positive effect on the growth of assets of islamic banks.

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.

UKURAN PERUSAHAAN SEBAGAI PEMODERASI PEMBIAYAAN MURABAHAH, MUDHARABAH DAN MUSYARAKAH TERHADAP PROFITABILITAS BANK UMUM SYARIAH

This study aims to determine the ability of company size in moderating the effect of murabahah, mudharabah and musyarakah financing on profitability (Return on assets) of Islamic Commercial Banks for the 2015-2018 period. This research data in the form of panel data obtained from quarterly financial statements of Islamic Commercial Banks then processed with Eviews 9. The results show partially murabahah financing does not affect profitability, while mudharabah and musyarakah financing have a significant effect. Simultaneously, murabahah, mudharabah and musyarakah financing have an effect on profitability. As a moderating variable, firm size weakens the effect of mudharabah financing on profitability, while on the influence of murabahah and musyarakah financing, firm size does not provide a moderating effect. This does not mean that financing does not contribute to profitability, but because of the high non-performance financing and not yet maximum utilization of assets increases profitability through Islamic finance.Keywords: murabahah, mudharabah, musyarakah, size, return on asset.

Pengaruh Pembiayaan Murabahah, Mudharabah, Dan Musyarakah Terhadap Profitabilitas Bank Umum Syariah

In increasing the assets of Islamic banks, they certainly need funding. Return on Assets (ROA) is a ratio that has the function of increasing banking assets. This study aims to determine the effect of murabaha, mudaraba and musharaka financing on profitability projected on ROA using objects, namely 9 Islamic banks in Otoritas Jasa Keuangan (OJK) which have reached the research criteria. Data from this study are in the form of financial statements from the bank's website for the 2014-2018 period. The partial results of the study are murabahah, mudharabah, and musyarakah financing have no influence on ROA, while simultaneous murabahah, mudharabah and musyarakah financing do not have an influence on ROA.

Examining Technological and Productivity Change in the Islamic Banking Industry

Islamic banking dominates the largest market share of global Islamic finance assets. Thus, the performance of Islamic banks is crucial in shaping the future development of Islamic finance. This study aims to examine the performance of Islamic banks in the perspective of technological and productivity change based on the country level assessment. By adopting the Malmquist Index analysis, this study selected 44 Islamic banks from the top ten countries that had the largest Islamic banking asset for the period from 2015 to 2018. The findings reveal that the average productivity of Islamic banks has increased during the study period. Productivity improvements were supported by technological innovation, which significantly increased the level of productivity. Nevertheless, the high-tech expansion was not followed by an improvement in the efficiency level. This finding explains that the development of banking technology is not able to fully support the development of products and services.

The Influence Of Financing And Third Party Funds (Dpk) Towards Roa Of Islamic Rural Banks (Bprs) In Sumatera Barat

This research aims to investigate the influence of financing and Third Party Funds (DPK) towards the Return on Assets (ROA) of Islamic Rural Banks (BPRS) in West Sumatera. This field research is a quantitative study with seven PT BPRS in West Sumatera as the object of the research. This research uses secondary data in the form of panel data which combined cross section and time series data. The panel data are quarterly financial statements from 2016 to 2018 which are recorded in Financial Service Authority (OJK). The result of this research shows financing and third party funds (DPK) influence ROA in the amount of 59,65% simultaneously. The rest of it are influenced by other factors that are not investigated. Partially, financing is the only subject that has influence toward ROA. Meanwhile, third party funds had no significant influence towards ROA of seven BPRS in West Sumatera. This case is interesting to be researched since quantitative data reflects fluctuation based on financing from 2016 until 2018 while DPK tend to increase. However, financing is the only subject that has significant influence towards ROA.

Determinant Of Sharia Bank Indonesia Rate With Financing And Deposit In Indonesian Islamic Banking Asset

This study aims to analyze the effect of bank certificates of Indonesia sharia (SBIS), financing to deposit ratio (FDR), and non-performing financing (NPF) against assets of Islamic Banking in Indonesia. The data used in this study are monthly time series data from the period from 2009 until 2013, published by Bank Indonesia of Indonesian Financial Statistics Report. The method of analysis used in this study is the Ordinary Least Square (OLS). The results of this study indicate that the variable certificates Indonesia sharia banks ((5.296593 and 0.0000), and financing to deposit ratio (5.512164 and 0.0000) had significant positive influence on Islamic banking assets in Indonesia. While non-performing financing variables (15.78500 and 0.0000) had significant negative towards Islamic banking assets in Indonesia.

Analisis Pengaruh Kewajiban Penyediaan Modal Minimum (KPMM), Beban Operasional Pendapatan Operasional (BOPO), Financing To Deposit Ratio (FDR), dan Inflasi Terhadap Return On Asset (ROA) Pada Bank Umum Syariah di Indonesia Periode 2016-2019

This study aims to analyze and obtain empirical evidence regarding the effect of KPMM, BOPO, FDR, and Inflation on ROA in Islamic Commercial Banks in Indonesia for the period of 2016-2019. The method used is Multiple Linear Regression Analysis with the analysis techniques F Test, R2 Test, and t Test. Based on the results of testing and discussion, the results of KPMM, BOPO, FDR, and Inflation simultaneously have a significant effect on the Return on Assets (ROA) of Islamic Commercial Banks in Indonesia. Partially, BOPO and FDR have a significant effect on Return on Assets (ROA). Meanwhile, KPMM and Inflation do not have a significant effect on Return on Assets (ROA) at Islamic Commercial Banks in Indonesia.

Legal Origin, Institutional Quality, and Islamic Finance Development: Does Shari’a Matter?

Abstract Previous studies on financial development have shown that differences in the legal origin explain differences in financial development. Using historical comparisons and cross-country regressions for 40 countries observed for the period from 2005 to 2018, our research assesses how different legal origins have affected the development of Islamic finance worldwide. More particularly, our research assesses empirically why and how the adoption of Shari’a, wholly or partially (combined with common or civil law), could explain the level of development of Islamic finance in different jurisdictions. Our primary results show that countries adopting a Shari’a legal system have a very well-developed Islamic financial system. Moreover, countries adopting a mixed legal system based on common law and Shari’a law have sufficient flexibility within their legal systems to make changes to their laws in response to the changing socioeconomic conditions, and this has helped the development of the Islamic financial industry. However, countries adopting a mixed legal system based on both civil law and Shari’a law appear less flexible in making changes to their old laws and this thwarted the development of the Islamic financial industry in these countries. Furthermore, we have found that the concentration of a Muslim population (the percentage of Muslim population) along with the level of income have both had a positive effect on the development of Islamic banking assets and on the development of Islamic banking as a whole.