The development of digital technology and social media has driven changes in Generation Z's consumption behavior, particularly through self-reward lifestyle, shopaholic behavior, and Fear of Missing Out (FOMO). These three factors have the potential to increase consumptive spending patterns and decrease the quality of financial management. This study aims to analyze the influence of self-reward lifestyle, shopaholic behavior, and FOMO on consumptive spending patterns and financial management of Generation Z. This study uses a quantitative method with a causality approach. The research sample consisted of 152 Generation Z students majoring in Islamic Banking at UIN North Sumatra who were selected using the Slovin formula. Data were collected through a Likert scale questionnaire and analyzed using multiple linear regression with the help of IBM SPSS 26. The results showed that self-reward lifestyle, shopaholic behavior, and FOMO have a positive and significant effect on consumptive spending patterns. In addition, the third variable also has a negative and significant effect on Generation Z's financial management. These findings emphasize the importance of controlling consumptive behavior and increasing financial literacy to create more rational and sustainable financial management.

This study discusses the analysis of the account opening procedure for E-mas Savings through the digital platform BYOND by Bank Syariah Indonesia. The selection of this topic is motivated by the development of digital services in Islamic banking and the increasing public interest in gold investment products based on sharia principles. The purpose of this study is to identify the procedure for opening an E-mas Savings account and to examine its compliance with sharia accounting principles and DSN-MUI Fatwas. This research was conducted at Bank Syariah Indonesia KCP Tegal Sutoyo using data collection techniques in the form of observation, interviews, and documentation. The study employed a qualitative descriptive approach to obtain an in-depth understanding of the implementation of digital-based E-mas Savings services. The focus of the research was directed toward the stages of the account opening procedure, transaction mechanisms, and the application of sharia principles in digital banking services. The results indicate that the procedure for opening an E-mas Savings account has been implemented in accordance with applicable regulations and sharia principles, although there are still obstacles related to the uneven level of customer understanding regarding digital service mechanisms. In addition, the implementation of digital services through BYOND by BSI is considered capable of providing convenience, efficiency, and flexibility for customers in conducting gold investments without having to visit bank branches directly. Therefore, increased education and socialization for customers are needed so that the utilization of E-mas Savings can run more optimally and enhance public trust in digital-based sharia investment products..

This study examines the status and financial implications of environmental reporting among listed Islamic (Shariah-based) banks in Bangladesh over the period 2018 to 2024. Using a comprehensive 46-item environmental reporting checklist covering six thematic dimensions, environmental disclosure scores were constructed from annual reports of eight listed Islamic banks, yielding 56 firm-year observations. The grand mean environmental disclosure score stands at 33%, with a gradual upward trend from 30% in 2018 to 35% by 2024, indicating modest but consistent progress in environmental accountability. Panel regression analysis reveals that environmental audit and environmental cost reporting exert a significant positive influence on both return on assets (ROA) and return on equity (ROE). In contrast, environmental investment reporting is found to negatively affect profitability when considered in isolation, suggesting short-term cost burdens associated with green investment activities. Among control variables, firm size relates positively to financial performance while firm age exerts a negative effect. These findings underscore the importance of institutionalizing transparent environmental accountability mechanisms, particularly environmental auditing and cost management practices, as drivers of sustainable financial performance. The study contributes original empirical evidence to the environmental accounting literature within the context of Islamic banking in an emerging economy and carries practical implications for regulators, bank managers, and sustainability policymakers in Bangladesh and comparable jurisdictions.

Purpose This paper aims to propose a governance-focused framework for integrating artificial intelligence (AI) into the internal Shariah audit (ISA) of Islamic banks in Malaysia. Grounded in the Resource-Based View, it explains how AI enhances ISA effectiveness, efficiency and transparency by improving audit quality, timeliness and compliance while preserving Shariah authenticity, ethical accountability and organisational capability through technology, auditor competence, adaptability and regulatory alignment. Design/methodology/approach A conceptual methodology synthesising theoretical perspectives, regulatory guidelines and existing literature is adopted. Grounded in the Resource-Based View and guided by Malaysia’s Operational Risk Reporting framework, this study proposes a layered AI-integrated ISA governance model aligning technological capability, auditor competence, and institutional oversight to enhance Shariah audit effectiveness. Findings This study demonstrates that AI has the potential to transform ISA from a periodic manual process into a continuous assurance mechanism that enhances efficiency, transparency and accountability. Effective implementation depends on technological readiness, auditor competence and adherence to Shariah principles. The framework advances four interrelated enablers of AI-integrated ISA effectiveness: AI infrastructure, Shariah interpretation, organisational adaptation and regulatory alignment. Research limitations/implications This study extends the Resource-Based View by framing ISA as a strategic capability integrating human expertise, technological infrastructure and governance alignment. It offers practical guidance for Islamic banks seeking to implement AI responsibly to strengthen audit quality, compliance and stakeholder trust. As a conceptual framework, this study invites future empirical research to validate and refine the proposed model across different regulatory contexts. Originality/value This paper introduces a governance-based conceptual framework that integrates AI into internal Shariah audit through a Resource-Based View lens, bridging digital innovation with Shariah governance. It advances existing literature by moving beyond technical AI models to provide a structured capability-based approach that strengthens compliance and preserves ethical legitimacy in Islamic financial institutions.

Purpose This study aims to consider the implications of the newly devised financial accounting Standard No. 62 by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) on green finance. Design/methodology/approach This study performs a normative regulatory analysis of AAOIFI’s Standard No. 62 with specific reference to the current structural construct of Sukuk – a pivotal financial instrument of green finance, and converses about its adaptation across jurisdictions with the underlying complexities and how they propagate the trillion-dollar global Sukuk market. Findings The proposed standard aims at limiting “asset-based Sukuk” in favour of “asset-backed Sukuk,” thereby reducing the propinquity of Sukuk to a conventional bond: Standard 62 mandates Sukuk issuers to transfer the legal ownership of the assets that underpin them to the investors. The standard promulgates an unequivocal normative framework that engenders regulatory harmonisation across transnational Islamic financial institutions. Its prescriptive elucidation of partnership parameters and profit–loss sharing mechanisms confers doctrinal clarity, thereby mitigating interpretative heterogeneity and fostering investor confidence. The “exposure draft” of the standard reasons that this uniformity is instrumental in attenuating the epistemological divergence that has hitherto beleaguered the sector, and it underpins the legitimacy of Shari’ah-compliant financial products by aligning them with traditional jurisprudential precepts. However, the prescriptive rigidity inherent in the standard has precipitated critiques of its inflexibility in accommodating the diverse traditions endemic to Islamic jurisprudence. The one-size-fits-all approach may inadvertently circumscribe innovative financial engineering, as it imposes normative constraints that can be at odds with localised socio-economic exigencies. Such a static regulatory apparatus risks engendering asymmetrical risk allocation, thereby subverting the dynamic equilibrium sought by profit-and-loss sharing arrangements. Practical implications The proposal represents a seismic change that would add huge legal complexities and raise transaction costs for Sukuk, thereby disrupting issuance, especially the prevalent Green/ESG-Sukuk, which are at the core of green finance. Essentially, there are over 200 instruments, and the standard is going to change their credit profile from being a “senior and secured” to an “asset-backed” securitisation, which is an actual transformation of the debt class. Although Islamic banks are predominantly deposit-funded, a Sukuk halt would affect their overall funding and liquidity profiles to boot. Originality/value AAOIFI Standard No. 62 may ostensibly serve as an essential corrective to align financial practice with Sharī’ah jurisprudence, but its harmonisation is likely to engender both salutary reforms and transitional challenges that will require careful regulatory calibration and market adaptation.

Purpose This study aims to explore the intersection of Islamic finance and environmental sustainability by evaluating Pakistan’s inaugural green sukuk and assessing the broader regulatory and policy landscape for green finance. Design/methodology/approach By using a qualitative content analysis (QCA) methodology, the research combines a case study of Pakistan’s first sovereign green sukuk with a policy review of green finance initiatives in Pakistan. Data were sourced from official documents, academic literature and media reports (2015–2025) and triangulated to ensure credibility. Findings The green sukuk issuance, structured on an Ijarah model, demonstrates strong investor demand and practical alignment with both Shariah principles and Pakistan’s Sustainable Development Goals. However, broader integration of Islamic finance into environmental planning is limited by fragmented regulatory frameworks, weak enforcement and lack of technical capacity within financial institutions. Research limitations/implications The study relies on secondary data, which may not fully capture operational challenges or stakeholder perspectives. Future fieldwork and interviews could provide more nuanced insights into implementation bottlenecks and investor behavior. Practical implications The paper provides actionable recommendations for Islamic banks, regulators and researchers, including standardizing taxonomies, expanding green product offerings and improving institutional coordination. Originality/value This is the first comprehensive academic analysis of Pakistan’s green sukuk within its evolving green finance framework, offering a replicable model for other emerging economies aiming to align Islamic finance with climate objectives.

This study examines the nexus between Islamic bank financing and regional poverty reduction in Indonesia, addressing the critical gap in evidence-based policy during the post-pandemic recovery. Utilizing a balanced panel dataset of 33 provinces from 2020 to 2024, the research employs a Fixed Effect Model (FEM) with Cluster-Robust Standard Errors to ensure empirical rigor. The results demonstrate that while total Islamic financing significantly reduces poverty rates—confirming its role in wealth redistribution Islamic MSME financing exhibits a significant positive correlation. Rather than indicating intermediation failure, this study clarifies that such results reflect a strategic pro-poor targeting phenomenon, where Islamic financial institutions proactively penetrate high-poverty regions to fulfill their social inclusion mandate. Furthermore, the findings reveal a fiscal-monetary divergence, where regional government expenditure shows persistent inefficiencies in contrast to the positive externalities of population agglomeration. This study contributes to the literature by providing a nuanced understanding of the dual-objective nature of Islamic banking and offers a novel framework for integrating Sharia-based financial inclusion with regional development strategies. The findings provide a mandate for policymakers to synchronize fiscal allocations with Islamic financial ecosystems to foster sustainable economic independence.

The heating of the Palestine–Israel conflict in October 2023 triggered boycott movements targeting companies that support Israel and generated concerns regarding the financial market stability. This study examines the impact of boycott movements and macroeconomic factors on stock return volatility in Indonesia. Using time-series data from January 2021 to April 2025, the analysis compares the conventional index represented by the IDX Composite (IHSG) and the Islamic index represented by the Indonesia Sharia Stock Index (ISSI). Volatility dynamics are modelled using the ARCH/GARCH, while short-run and long-run relationships are analyzed using the ARDL approach. The results show that the optimal volatility of Islamic stocks exhibiting faster adjustment toward long-run equilibrium. The boycott movement significantly increases long-run volatility in the IHSG, whereas its effect on ISSI volatility is insignificant, indicating greater resilience of Islamic stocks. Inflation and industrial production reduce volatility, while exchange rate depreciation amplifies volatility in both indices. These findings contribute to the market volatility and Islamic finance literature by demonstrating that ethical screening and Sharia-compliant investment structures mitigate the transmission of boycott-induced geopolitical risk. The results offer practical implications for investors and regulators in strengthening Islamic capital markets as a stabilizing mechanism during periods of socio-political uncertainty.

This study aims to analyze the effect of murabahah margin levels and the Financing to Deposit Ratio (FDR) on NonPerforming Financing (NPF) in Islamic Commercial Banks in Indonesia during the period 2021 to 2024. The study employs a quantitative approach with an explanatory research design. The data used are secondary data obtained from Islamic Banking Statistics and bank financial reports. The analytical method applied is multiple linear regression. The results indicate that murabahah margin levels and FDR show an increasing trend during the observation period, while NPF fluctuates. An increase in murabahah margins may affect customers’ repayment capacity, thereby influencing the risk of nonperforming financing. On the other hand, an increase in FDR reflects higher financing distribution, but also raises potential risks if not supported by proper risk management. The findings reveal that murabahah margin levels and FDR have a significant effect on NPF, both partially and simultaneously. These results suggest that margin setting policies and financing distribution strategies play an important role in maintaining financing quality and the stability of Islamic banking. This study is expected to provide insights for Islamic banks in managing financing and risk more effectively

Islamic mortgage financing (KPR iB) is one of the flagship products of Islamic banking in Indonesia, designed to facilitate home ownership in accordance with Sharia principles. However, customer participation in KPR iB remains suboptimal compared to conventional mortgage products. This study aims to examine the factors influencing customer decisions in choosing KPR iB, particularly from the perspective of Islamic Economic Law. The study specifically analyzes: (1) the influence of Sharia compliance, product innovation diffusion, promotion, and product quality on customer decisions to choose KPR iB in Bogor; and (2) the mediating role of customer decisions in the relationship between those variables and the increase of Islamic bank market share. This research employs a Mixed Methods approach, with an Explanatory Sequential Design combining quantitative and qualitative analyses. The theoretical framework includes Rational Choice Theory (Gary Becker) as the Grand Theory, Islamic Consumer Behavior Theory (Umer Chapra) as the Middle Theory, and Sharia Compliance Theory (Monzer Kahf) as the Application Theory. Data were collected through questionnaires, observations, interviews, and document analysis. The data were analyzed using Structural Equation Modeling (SEM) with SmartPLS 3.0. The findings indicate that: (1) Sharia compliance does not significantly influence customer decisions; (2) product innovation, promotion, and product quality have a significant positive effect on customer decisions; and (3) customer decision does not mediate the relationship between Sharia compliance and market share, but effectively mediates the impact of product innovation, promotion, and product quality on increasing Islamic bank market share.

This study analyzes the influence of e-service quality and e-trust on customer loyalty at PT Bank Syariah Indonesia (BSI) KCP Binjai through the lens of Islamic Economics. The research background is triggered by the dynamics of Islamic banking digitalization and the cyber system disruption in May 2023 that tested the resilience of customer trust. The research method used is quantitative with an associative approach. Data were collected via questionnaires from 100 active BSI KCP Binjai customers selected using purposive sampling. Data analysis was performed with multiple linear regression and classical assumption tests. The results indicate that e-service quality and e-trust have a positive and significant effect on customer loyalty, both partially and simultaneously. In an Islamic Economics perspective, digital service quality is an embodiment of ihsan and itqan, while trust is the implementation of amanah values. The study concludes that technological infrastructure stability and moral integrity are vital for maintaining customer loyalty in the digital era.

This study investigates the determinants of Islamic banking adoption through a comparative analysis of customer interest in Indonesia and Malaysia, two leading Islamic finance markets characterized by contrasting levels of institutional development. Grounded in an integrated framework combining the Technology Acceptance Model (TAM) and Diffusion of Innovations Theory, this research employs a robust mixed-methods design, utilizing survey data from 1,000 respondents alongside qualitative insights to capture both behavioral trends and contextual nuances. The findings indicate that adoption is driven by a multidimensional interplay of religiosity, financial literacy, perceived benefits, service quality, social influence, institutional trust, and technological readiness, with significant cross-country variations. In Indonesia, adoption is predominantly shaped by religious commitment and ethical alignment, yet constrained by limited financial literacy and market awareness. In contrast, Malaysian customers exhibit stronger responsiveness to product innovation, digital integration, and social influence, reflecting a more mature Islamic banking ecosystem. The study’s key novelty lies in its integrative cross-country framework, which moves beyond single-factor explanations by demonstrating how cognitive, socio-cultural, and institutional determinants interact dynamically across different market contexts. By bridging micro-level behavioral theories with macro-level institutional differences, this research offers a more comprehensive explanatory model of Islamic banking adoption. The findings provide actionable insights for policymakers and financial institutions to design context-specific strategies that enhance customer engagement, strengthen financial inclusion, and accelerate the sustainable development of Islamic finance globally.

ABSTRACT Despite managing $3.8 trillion in assets, Islamic finance has failed to convert capital abundance into universal energy access across Muslim-majority countries. This PRISMA-based systematic review analyzes 89 peer-reviewed publications using bibliometric methods, socio-technical systems theory, and Multi-Level Perspective (MLP), evaluated against energy justice dimensions (distributional, procedural, recognition). Findings reveal critical publication-implementation gaps: academic output grew 347% while project financing increased only 23% (2015–2024), with no significant Granger causality (F = 1.82, p = 0.18). Citation concentration (Gini = 0.73) favors ESG correlations over energy access outcomes. Implementation analysis documents systematic failures across all justice dimensions: 73% urban project concentration despite 89% rural energy poverty; only 22% meaningful community participation; and average household reach of 1,200 versus 4,500 for conventional finance (p < 0.01). These patterns constitute a reproduction pathway producing symbolic responses without fundamental system change, carrying significant implications for SDG 7 financing reform.

This research examines how customers who use mobile banking services perceive the brand image of Islamic banks in Indonesia. It applies a qualitative content analysis approach using thematic analysis in NVivo. This analysis focuses on the mobile banking apps of Islamic banks in Indonesia. This research analyzed and visualized coded data to identify patterns in perceptions, levels of satisfaction, and complaints about digital Islamic banking services. This research found that the main components of Islamic bank brand reputation are operational responsiveness and operational efficiency of the services, alongside trust and transparency. Customers of Islamic banks perceive that compliance with Sharia principles and Islamic values is a given. Therefore, Islamic values and Sharia compliance do not enhance the bank's reputation. The data analysis found that customers appreciate banks that provide consistent, reliable service. Customers consider deep digital services critical, but still prioritize transaction reliability, security, and service quality as the most influential factors in the banking service brand reputation. Thus, for Islamic banks to provide professional, secure, and customer-oriented services and to integrate Sharia values, their brand reputation must be sustained. This research offers both a theoretical contribution to the scholarship on brand reputation in Islamic banking and a consolidated, practical, service, and reputation strategy for the digital age.

The present study investigates the interplay among trust, perceived security, risk management, and reputation in the context of a cyber-incident in Islamic banking services with religiosity as a mediator. The respondents consisted of 247 Indonesian customers of Islamic banks. PLS-SEM was used to analyze the collected data. The results revealed that religiosity strongly increases the level of trust and mediates the impact of perceived security and reputation. Meanwhile, risk management impacts trust directly. Reputation did not affect the target construct directly, yet had a highly mediated impact on trust through religiosity, suggesting that in a crisis situation, institutional credibility is mainly evaluated through the religious perspective. The present results indicates that the restoration of digital trust in post cyber-incident should be based not only on technical aspects (effective security and risk management) but also on value-based aspects according to the Shariah law. Islamic banks should focus their efforts on communicating cybersecurity measures and practices as part of their ethical responsibility, emphasize accountability and the protection of stakeholders' rights, and work together with religious institutions to build up their credibility. This study contributes to Commitment–Trust Theory, as it reveals that religiosity can be considered an evaluation process in translating institutional practices into trust.

This study investigates systematic misconceptions among Generation Z based on gender. Using a mixed-methods approach, data were collected from 303 Generation Z participants in Yogyakarta, Indonesia. Data were collected through focus group discussions and structured surveys, which were analyzed using exploratory factor analysis (EFA) and reliability testing. The results indicate that the dominant factor exposed from this misconception is perceived banking convergence. Furthermore, the level of understanding among males shows higher values compared to females, particularly for the indicators of shariah home financing, shariah deposits, business loans, banking objectives, and fund management, which have the largest value gaps. Islamic banking institutions need to design more gender-segmented education and communication strategies, with a special emphasis on clarifying the differences in principles and product mechanisms. In addition, institutions need to develop more practical financial literacy campaigns to enhance Generation Z's substantive understanding of the value of Islamic banking.

Amid rapid digital advancement, empirical evidence linking digital transformation with sustainability principles in Islamic economics and finance remains limited. The evolution of this sector has increasingly reflected improvements in operational efficiency, expanded financial inclusion, and the emergence of technology-driven innovations. This study evaluates the effects of digital transformation, sustainable growth, and geopolitical uncertainty on the performance of Islamic economics and finance, with a focus on Islamic financial institutions in Lhokseumawe City. A quantitative approach is employed using Partial Least Squares–Structural Equation Modeling (PLS-SEM), based on data collected from 279 users of Islamic financial services. The findings reveal that digital transformation, sustainable growth, and geopolitical factors each exert a positive and significant influence on the performance of Islamic economics and finance. In addition, digital transformation functions as a mediating mechanism that links sustainable growth to financial performance, indicating its role in translating sustainability-oriented initiatives into measurable outcomes. These results highlight the importance of strengthening the integration between digital innovation and sustainability agendas, while also addressing external pressures arising from geopolitical uncertainty and global technological change. The study offers insights for advancing theoretical integration across these domains and provides direction for enhancing institutional adaptability, inclusiveness, and resilience within Islamic financial systems. Transformasi Digital dan Keberlanjutan dalam Keuangan Islam: Bukti dari Ketidakpastian Geopolitik di Ekonomi Regional Berkembang. Meski teknologi digital berkembang sangat pesat, studi empiris tentang hubungan antara transformasi digital dan prinsip keberlanjutan dalam ekonomi dan keuangan Islam masih terbatas. Transformasi digital telah mempengaruhi dinamika ekonomi dan keuangan Islam lewat peningkatan efisiensi operasional, perluasan inklusi keuangan, serta inovasi berbasis teknologi. Penelitian ini bertujuan menilai pengaruh transformasi digital, pertumbuhan berkelanjutan, dan ketidakpastian geopolitik terhadap kinerja ekonomi dan keuangan Islam, khususnya pada lembaga keuangan Islam di Kota Lhokseumawe. Penelitian ini menggunakan pendekatan kuantitatif dengan metode Partial Least Squares–Structural Equation Modeling (PLS-SEM). Data diperoleh dari 279 responden yang merupakan pengguna layanan keuangan Islam di Kota Lhokseumawe. Hasil studi menunjukkan bahwa transformasi digital, pertumbuhan berkelanjutan, dan faktor geopolitik memiliki pengaruh positif dan signifikan terhadap penguatan ekonomi dan keuangan Islam. Selain itu, transformasi digital berfungsi sebagai variabel mediasi yang menghubungkan pertumbuhan berkelanjutan dan kinerja keuangan Islam. Temuan ini menegaskan pentingnya pemanfaatan teknologi digital secara efektif sebagai mekanisme kunci dalam mendukung keberhasilan pertumbuhan berkelanjutan di sektor keuangan Islam. Studi ini memberikan kontribusi dalam pengembangan kerangka teoretis yang lebih terpadu serta menawarkan arah bagi peningkatan adaptabilitas, inklusivitas, dan ketahanan lembaga keuangan Islam.

The article examines the historical aspects of the development of the Islamic banking system, which is based on the rules of Sharia and Islamic ethics, as well as the legal framework that regulates the activities of Islamic financial institutions. The study explores the fundamental principles and conceptual categories that characterize the unique model of banking. Based on the analysis of operations inherent in Islamic banking, the main items of the formation of liabilities are determined, and the structure of the assets of the balance sheet is presented. Based on the study of the set of economic relations and connections between the participants of the credit and financial system within the framework of the Islamic model of banking, the factors that form Islamic banking are substantiated and the prospects for its application for the development of national economies of Arab countries are assessed.

Islamic banking has a strategic role in expanding financial inclusion in Indonesia through the application of the principles of justice, benefit, and sustainability. This research uses a qualitative method with literature studies from various current journals that discuss financial digitalization, sharia literacy, and strengthening the halal economic ecosystem. The results of the study show that Islamic banking contributes to increasing public access to financial services through micro products, digital innovation, and Islamic financial literacy programs. Synergy between regulators, industry, and social institutions is key in accelerating fair and sustainable Islamic financial inclusion. However, challenges such as low Islamic financial literacy and limited service networks still need to be overcome so that the role of Islamic banking is more optimal in supporting national economic development.

This study aims to analyze differences in financing growth based on its type of use working capital, investment, and consumption at Islamic commercial banks in Indonesia during the 2021-2024 period. This research addresses the limitations of previous studies, which generally focused on aggregate analysis and failed to compare growth dynamics across financing types simultaneously. The study used a quantitative approach with monthly data (n = 48) analyzed using Repeated Measures ANOVA and Bonferroni's follow-up test. The results showed a significant difference in financing growth, where working capital financing differed significantly compared to investment and consumption financing, while both were not significantly different. These findings indicate that working capital financing is more sensitive to economic conditions, while investment and consumption financing tend to be stable. This research contributes by emphasizing the role of financing growth as a strategic signal from a signaling theory perspective and provides implications for strengthening the intermediary function of Islamic banking.