Islamic Banks In Indonesia Research Articles

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

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.

Determinant Of Stakeholders Reliance On Indonesian Islamic Banking

Determinant Of Stakeholders Reliance On Indonesian Islamic Banking

Integration of Corporate Governance and Social as a Catalyst for Islamic Banking Financial Performance; Evidence in Indonesia

Corporate governance can be assessed from how the company has been run openly and transparently, to gain public trust in market mechanisms. Islamic banking in Indonesia shows a pattern that social activities are an obligation that must be carried out. Social is a characteristic of Indonesian banking, a financial institution that has implemented the concept of sharia. In this study, the sample used amounted to 132 data on BUS's financial statements for 11 years from 2010-2020. As a result, improved governance, actually led to a decline in financial performance, by the regression value of -0.1682. Meanwhile, the social variable shows that if social performance increases, financial performance also increases by 0.282.

Proposed Model of Sharia Bank Share Ownership through Waqf Funds

This paper presents a feasibility model for Sharia Bank share ownership through Waqf funds as an alternative source of capital. It begins by addressing the problem of insufficient capital stock for Islamic banks in Indonesia. The exploration includes banking regulations by the Indonesian Financial Services Authority, Sharia Waqf laws and regulations by the Indonesian Waqf Board, and literature in the field of Waqf, as well as secondary sources such as books, journal articles, and online resources, particularly those related to Waqf regulation. Conclusions are drawn by analyzing several themes, which are further validated through in-depth interviews and Focus Group Discussions with experts. This paper introduces Cash Waqf as a potential source of paid-in capital for Islamic banks, particularly in Indonesia.

Analysis of the Influence of Mobile Banking on the Profitability Level of Sharia Banks in Indonesia in 2019-2023

The aim of this research is to determine the effect of mobile banking on the level of Return On Assets (ROA) of Islamic banks in Indonesia in 2019-2023. The rise and fall of ROA is caused by unstable profits and total assets. This research uses quantitative research, and the data source uses secondary data in the form of a time series of 20 samples. Data analysis techniques use descriptive statistical test techniques, normality test, hypothesis test (t test), coefficient of determination test (R Square), and simple linear regression analysis. Data processing uses the SPSS Version 23 program. The research results show that the mobile banking variable has a partial effect on the profitability of Islamic banks in Indonesia in 2019-2023. This can be proven by the results of the t test analysis showing that the e-banking variable has t count gt; t table, thus e-banking has an effect on the profitability of Islamic banks in Indonesia in 2019-2023.Keywords: Mobile Banking, Profitability

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

Internal and External Factors on Profitability of Islamic Banks in Indonesia Mediated by Operating Expenses Operating Income (Period 2013 to 2023)

Lucrativeness is a vital element for evaluating Islamic banks' monetary achievement. It's critical to grasp the determinants that influence Indonesian Islamic banks' lucrativeness. The objective of this examination is to explore the factors—such as problematic financing, financing to store ratio, currency rates, price rises, and operational proceeds as an intermediary variable—that impact the productivity of Islamic banks in Indonesia. This research intends to provide choice makers in the Islamic fiscal industry a more comprehensive discernment of the budgetary operation of Islamic banks by scrutinizing these guidelines. This research methodology uses a panel data approach using secondary data from Islamic banks in Indonesia. Through panel data analysis, this study examines the effect of these variables on the profitability of Islamic banks. The conclusions showed that, in Sub-structural I, Financing to Deposit Proportion (FDR) favorably affects the productivity (ROA) of Indonesian Islamic banks, while Non-Performing Financing (NPF), Currency Ratios, and Rising Prices have no consequence on operational expenses operational proceeds (BOPO). As indicated by sub-structural II, profitability is impacted by inside factors (NPF and BOPO), outer variables (expansion and cash rates) have no significant effect on productivity, and financing to store proportion (FDR) has no impact on productivity. In this examination, the BOPO fills in as a mediating variable that just intercedes the effect of the Financing to Deposit Ratio on Lucrativeness. Concerning the other autonomous factors, it has no bearing. Other than featuring the significance of hazard relief and operational effectiveness in accomplishing positive monetary outcomes, this exploration illuminates the variables influencing the productivity of Islamic banks in Indonesia.

Customer Response towards Funding Return Uncertainty in Indonesian Islamic Banking

Customer Response towards Funding Return Uncertainty in Indonesian Islamic Banking

Reevaluating the Profitability, Performance, and Stability of Sharia Banks in Indonesia Using the Eagles Framework

Islamic banking in Indonesia has experienced rapid development in recent years. This encourages the importance of reviewing the financial performance of Islamic Commercial Banks (BUS) to determine the level of health and efficiency. The purpose of this study is to analyze the financial performance of BUS during the period 2018-2022 using the EAGLES method. As well as comparing financial performance between BUSs during the 2018-2022 period. This study uses quantitative methods with secondary data sourced from BUS Annual Reports for the 2018-2022 period. Financial performance is measured using the EAGLES method which includes ROA, ROE, NPF, DGR, LGR, FDR, CAR, and SRQ ratios. The results showed that there were differences in the ratios calculated on BUS during the 2018-2022 period. Overall, BUS shows a fairly healthy financial performance with some BUSs that have better performance than others. The conclusion of this study is that the financial performance of BUSs during the 2018-2022 period shows a positive trend with some BUSs that have better performance than others. The use of the EAGLES method provides a comprehensive overview of BUS financial performance and can be used to compare performance between BUSs.

M Score Performance Measure for Islamic Banks in Malaysia and Indonesia

Performance measurement is vital to examine the performance of any institution. Due to the different nature of business operations, processes, and activities in Islamic banks, they have to be measured by a more focused instrument to reflect the Shariah compliance parts and their business nature compared to the conventional banks. Hence, M Score which has been developed by Abdul Rahim, Abdul Rahman and Syed AlHabshi (2016) has been adopted in this study. The findings from the computation will indicate which country gains the higher M Score in performance, and this can be used as a benchmarking exercise. This research aims to analyse and compare the M Score performance of Islamic banks in Malaysia and Indonesia. The content analysis via Annual Reports of Islamic banks has been used for this study. The sampling technique used is purposive sampling. The research was conducted on Islamic banks in Malaysia and Indonesia over a period of two years, from 2020-2021. This comparative research is expected to be an evaluation tool for Malaysian Islamic banks, helping them improve their performance to catch up with their counterparts in Indonesia. Thus, the purpose of this research proposal is to analyse and compare the effect of the soundness of Islamic banks based on the M Score performance of Islamic banks in Malaysia and Indonesia. The results of this study indicate that Islamic banks in Indonesia have a higher M Score ranking than those in Malaysia. There are significant differences in the performance of Islamic banks based on the Need Fulfilment and Equitable Distribution (NFED), Economic Growth (EG), and Economic Stability (ES) in Malaysia and Indonesia.

Kinerja Maqashid Syariah dan Financial Sustainability Bank Umum Syariah di Indonesia

Research on the relationship between maqashid sharia performance and financial sustainability of Islamic banks in Indonesia is still rare. Research related to the effect of performance on financial sustainability of Islamic banks mostly uses CAMEL ratio analysis which only emphasizes financial performance. This study aims to examine the relationship between maqashid sharia performance and financial sustainability of Islamic Commercial Banks in Indonesia. This research uses quantitative methods with multiple regression analysis techniques. The research sample is 58 data from 12 Islamic Commercial Banks registered on OJK in 2016 - 2020. The results showed that IMS had a significant negative effect on FSR. These results indicate that the higher the maqashid sharia performance achieved, it actually causes a decrease in financial sustainability as measured by the Financial Sustainability Ratio of the Islamic bank. Future research is expected to not only test the factors that affect the financial sustainabilty of Islamic banks, but also other types of Islamic entities.

Implementasi CNN-BiLSTM untuk Prediksi Harga Saham Bank Syariah di Indonesia

Stock price forecasting plays a crucial role in stock investment. Accuracy in predicting stock prices can provide significant financial benefits and help reduce investment risks. Stock price data are time series with high-frequency characteristics, non-linearity, and long memory, which makes stock price prediction a complex challenge. This research proposes a method for predicting the stock prices of Islamic banks in Indonesia using CNN-BiLSTM. This method aims to improve prediction accuracy by utilizing the feature extraction capabilities of CNN and the ability of BiLSTM to understand the temporal sequences of stock data. The data used in this research are the closing stock prices of Bank Syariah Indonesia (BSI), Bank Tabungan Pensiunan Negara Syariah (BTPN Syariah), and Bank Panin Dubai Syariah (PDSB) from January 2, 2020, to July 4, 2024. Testing these three stocks yielded MAPE values of 2.376%, 2.092%, and 0.629%, respectively. The study results show that the CNN-BiLSTM prediction model produced has very good accuracy in predicting stock prices.

Analisis Pengungkapan Tata Kelola Syariah pada Perbankan Syariah Indonesia, Malaysia dan Bahrain

Objectives: This study aims to test and analyze the effect of sharia supervisory board size, sharia supervisory board expertise, sharia supervisory board meetings, audit committee size, audit committee expertise, audit committee meetings, and CEO duality on shari'ah corporate governance in 15 Islamic banks in Indonesia, Malaysia and Bahrain during the period 2013-2022.Design/method/approach: The analysis technique in this study is quantitative with multiple regression analysis tools with a panel data approach Results/findings: The results of this study are (1) supervisory board expertise and meetings have a significant effect on shari'ah corporate governance disclosure (2) supervisory board size, audit committee size, meetings. expertise and CEO duality have an insignificant effect on shari'ah corporate governance disclosureTheoretical contribution: The application of Stewardship Theory to the disclosure of Shari'ah Corporate Governance as well as expanding insight and literature on Shari'ah Corporate Governance, Shari'ah Corporate Governance regulations, and the application of standards used by Islamic banking in several countries.Practical contribution: As a reference for regulators related to Shari'ah Corporate Governance to improve the quality of the standards that have been set.Limitations: The research object is only carried out in three countries, namely Indonesia, Malaysia and Bahrain so that the sample studied is still small

Determinants of Profitability in Indonesian Islamic Banks: A Study on Financing to Deposit Ratio

Determinants of Profitability in Indonesian Islamic Banks: A Study on Financing to Deposit Ratio

Analyzing Profitability Determinants in Indonesian Conventional and Islamic Banking

This article investigates the impact of financial ratios and macroeconomics on the profitability of conventional and Islamic banks in Indonesia. The study uses financial ratios as internal variables represented by CAR (X1), NPL/NPF (X2), and LDR/FDR (X3), while macroeconomics as an external variable is represented by BI7DRR (X4). The sample design used in this study includes conventional and Islamic banks from BUKU 1 and BUKU 2 in Indonesia, utilizing EViews and SPSS as analysis tools to test the proposed hypotheses. The analysis results show that CAR, NPL, and LDR have significant impacts on the ROA of conventional banks, while BI7DRR does not have a significant effect. On the other hand, in Islamic banks, only CAR and FDR significantly influence ROA, while NPF and BI7DRR do not have significant impacts. A paired sample t-test indicates a significant difference between the profitability (ROA) of conventional and Islamic banks. Based on these findings, it is recommended that conventional banks improve their management of CAR, NPL, and LDR, while Islamic banks need to focus on managing CAR and FDR, and develop innovative Sharia-compliant investment products to attract more stable funds.

Does The Merger of Large Sharia Bank Work? A Study of Islamic Bank in Indonesia

Does The Merger of Large Sharia Bank Work? A Study of Islamic Bank in Indonesia

Green Finance: Evaluating the Impact of Sustainable Investments on Corporate Performance of Islamic Bank in Indonesia

Green Finance: Evaluating the Impact of Sustainable Investments on Corporate Performance of Islamic Bank in Indonesia

Implementing maqasid sharia: Impact on stability of Indonesian Islamic banks

Implementing maqasid sharia: Impact on stability of Indonesian Islamic banks

Dampak Kinerja Keuangan terhadap Profitabilitas Bank Syariah: Analisis Perbandingan Bank Syariah di Indonesia dan Malaysia

This study aims to analyze the effect of financial performance on the profitability of Islamic banks in Indonesia and Malaysia, using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach and secondary data from 2019 to 2023. The results showed that asset quality, as measured by Net Performing Financing, proved to have a significant influence on profitability, with the coefficient value of Islamic banks in Indonesia is 0.035 and in Malaysia is 0.05. While other factors do not have a significant effect on profitability. This shows that both Islamic banks are very vulnerable to the quality of financing. Based on the results of this study, it is expected that stakeholders, such as Islamic banks and the government, can take concrete steps to improve the profitability and stability of the Islamic banking sector. Islamic banks are expected to focus on improving asset quality, managing credit risk better, and developing effective risk management strategies. Keywords: Financial performance; Profitability; Islamic banks; Indonesia; Malaysia; PLS-SEM.