Islamic Business Unit Research Articles

Lending Growth As A Fiqh Implication Toward Product Development Of Islamic Bank In Indonesia

This study aim to examine the financing growth of Islamic bank in Indonesia with the provisions system and proof that there is a counterclicality and capital smoothing behavior of bank manager, these findings contrast with the results of previous studies on procyclical behavior in loan loss provisions. The objects of this study are Islamic Banks and Islamic Business Unit in Indonesia period of 2000 – 2016. This study specifically estimates a different calculation in every component of discretionary and non-discretionary in Islamic bank financing with the variable control such as, non performance loan/financing, total loan, deposit growth, equity ratio, and total asset. The equation will be tested by using the regression system estimation and the validity tested by Kolmogorov-Smirnov test and Durbin Watson. The result of this study quantitatively proved that there is a pattern of countercyclicality behavior in Islamic bank consistent with compliant Syariah and significantly has positive correlation described by the relation of loan loss provision with the coefficient of GDP growth rate. From this result in accordance with the fiqh platform, for all forms of muamalah is “al ashlu fil mu’amalah illa al-ibahah yadullu daliil ‘alaa tahriimiha” (the origin of everything is allowed unless there is proof that forbid it), which means that by using the theory of fiqh rules the product development of Islamic bank can be done and expanded. The evidence for financing growth is that Islamic bank financing does not depend on the amount of deposit rates, and the coefficient of deposit and financing growth is insignificant and excluded, while the growth of financing and bank capital, GDP, and NPL have a negative and significant correlation. The coefficient of total assets and the growth of financing has a positive and significant correlation that means that Islamic bank managers to be income smoothing behavior.

Penerapan Pengembangan Sumber Daya Manusia Islami pada Unit Usaha Syariah

Shari'ah banking currently has a strong legal law with the presence of law number 21 of 2008 on shari'ah banking. It is very influential on the existence of sharia banking is increasingly in demand by many circles. Shariah banking continues driven in order to innovate in developing products to be able to reach a targeted market share of 5%. There are three types of sharia banking in Indonesia, namely Shariah Commercial Bank, Shariah Business Unit, and People's Bank of Sharia Financing. Of the three different types of Islamic banks are Shariah Business Unit itself, because not stand alone still follow the conventional bank, so much influence from the parent. Particularly related to the human resources of syariah banks, the syariah business unit is still in the shade of its parent, which is conventional bank, whereas both of them should be different. In this paper discussed about the implementation of Islamic human resource development in the Islamic business unit. The type of research conducted is a research or research by taking data from various sources that are then processed and drawn conclusions related to Islamic human resources. The results of this paper show / conclude there are some things related to the process of developing resources in Islamic banks are in line with the development of Islamic human resources. However, it is found that the application of Islamic human resources development has not been in line with the recruitment pattern of shariah business unit that has not been able to perform its own recruitment but still follow its conventional parent provisions. So that related to the criteria to be tb sharia bank has not been fulfilled.

Kinerja Keuangan Berbasis Shari’ate Value Added Approach: Komparasi Antara Bank Umum Sharia dan Unit Usaha Sharia di Indonesia

This study aims to measure the financial performance of Islamic banking in Indonesia using Sharia Value Added Approach. In specific, objectives of this study is comparing financial performance between Islamic banking (sharia commercial banking) and sharia busness unit that measure using shari’ate value added approach. The object of this study is islamic banking covers Islamic Banking and Sharia Business Unit, with research period is 2010-2015. Sample selection using purposive sampling mehod. Financial performance was measued in this study is Return on Asset (ROA), Return on Equity (ROE), Net Profit to Productive Asset (NPPA), and Net Profit Margin (NPM). The result of this study shows that financial performance of Islamic banking is healty. There are a significant difference of ROA, ROE, and NPPA between sharia commercial banking and sharia business unit that measure using income statement approach and using sharia value added statement approach. But, NPM is not. The result of this study provides a significant contribution to developing Sharia Enterprise Theory. For manager of Islamic banking, Bank Indonesia and Sharia Financial Standard Board, the result of study can used to create policies related to measurement of Islamic Banking performance.Keywords: financial performance, shari’ate value added approach, Islamic banking, sharia business unit

Spin-off policy and efficiency in the Indonesian Islamic banking industry

Indonesian Islamic Banking Act requires conventional banks to spin-off their Islamic business units if they had fulfilled the spin-off criteria. Some of the Islamic business units had done the spin-off process although they are not fulfilling the spin-off criteria. The data showed that there is an efficiency decline after the spun-off. This study is going to examine the spin-off’s impact on the efficiency in spin-off banks. The method used in this paper is a difference-in-differences analysis. The sample used is four spin’s banks as treatment objects and two Islamic full-pledge banks as control objects. This research shows that there is an impact of spin-off policy on the efficiency in spin-off banks. There is an efficiency decrease in spin-off banks after the activities. It implies that the spin-off policy is not the only strategy that can be implemented. The policy-makers can choose other strategies to enhance the development of Islamic banking industry.

Spin-off and market share in the Indonesian Islamic banking industry: a difference in difference analysis

Abstract According to The Act No. 21 of 2008 concerning Islamic Banking in Indonesia, the conventional banks are obligated to spun-off their Islamic business units after achieving a certain set of requirements. The spin-off requirements are: (i) reach 50% market share asset of its parents; or (ii) 15 years after the implementation of the Islamic Banking Act. This study emphasizes the impact of Islamic banks' spin-off on market share. The method used in this study is a difference in difference analysis. This technique is a quasi-experiment separate into two groups, such as the treatment groups (four spin-offs' banks) and control group (two fullfledged Islamic banks). This study used quarterly data from 2005 until 2016. The results show that, first, there is a difference in the Islamic banks' market share between pre- and post-spinoff. Second, there is a difference in the market share of spin-offs' banks between pre- and postspin- off. Third, there are there external factors that can affect the Islamic banks' market share, i.e., inflation rate, interest rate, and economic growth rate. The paper is a useful source of information that may provide relevant guidelines in helping the future development of spin-off activity in Islamic banking industry. The finding could be helpful for policymakers to create a supporting strategy to accelerate the development of Islamic banking industry. This result also could be of use for Islamic banking industries in other countries.

PENGARUH INTELLECTUAL CAPITAL PERFORMANCE TERHADAP INTENSITAS PELAPORAN MODAL INTELEKTUAL

A b s tr a c tThe annual report as one of disclosure information made by a company. Purpose of this study toanalyze the effect of intellectual capital reporting performance to the intensity of intellectualcapital. Sample of this study are that the Islamic banking registered at Bank Indonesia inperiod 2011 to 2015. Samples were selected using purposive sampling method and obtained 24Islamic banking which is 9 for Islamic Banks and 15 for Islamic business unit. The analysis toolused is WarpPLS 3.0 with assessing inner and outer models prior models to test data analysisis feasible or not. Results of this study indicate that intellectual capital performance significantpositive effect on the intensity of intellectual capital reporting.Keywords: Intellectual Capital Performance, Intellectual Capital

MANAJEMEN RISIKO PEMBIAYAAN KEPEMILIKAN RUMAH (KPR) GRIYA iB HASANAH PADA BANK BNI SYARIAH

Bank BNI Syariah is one of the Islamic Financial Institutions, which plays an important role in the storage and distribution of funds to communities in need. In the finance portfolio Ownership (KPR) Bank BNI Syariah must be selective in assessing the feasibility filed by the debtor. This assessment is done so that the bank BNI Syariah avoid risks or losses can not be a return to lending. Thus the conduct of credit or bank financing BNI Syariah must make an assessment based on the procedure or crediting mechanisms and internal control in order to avoid bad credit. The results of this study indicate, to anticipate emerging risks on mortgage products IB Griya Hasanah, BNI Syariah has application in anticipation of the risk occurring particularly the risk of credit or financing. Bank BNI Syariah apply multiple ways based on the regulations of Bank Indonesia No. 13/23 / PBI / 2011 regarding the implementation of Risk Management in Islamic banks and Islamic business units, among which the risk assessment process with the first step taken is to identify risk, then the risk assessment by PBI using the scoring method is based on historical data of customers and uses analytics 5C character (character or personality), capacity (ability), capital (capital), collateral (collateral), and the condition of economic afterwards risk monitoring and measures The latter is a risk control.

DETERMINANT OF EFFICIENCY OF THE ISLAMIC BANKING IN INDONESIA

Dual banking system in Indonesia provides an excellent opportunity for the growth of Islamic banking industry in Indonesia. Islamic banking industry in Indonesia has improved in number of banks and branches but the performance of Islamic banks has decreased in recent years. This paper measures the efficiency of Islamic banking in Indonesia using the intermediation approach and the Data Envelopment Analysis (DEA) on quarterly reports of 10 Islamic Banks (BUS) and 15 Islamic Business Units (UUS). The results showed that Islamic Banks (BUS) and Islamic Business Units (UUS) in Indonesia has not been operating efficiently in its intermediation function. The estimation results of data panel regression model showed total financing and CAR have positive and significant impact, whereas the deposits have negative and significant impact to the efficiency of BUS and UUS in Indonesia.

LENDING GROWTH AS A FIQH IMPLICATION TOWARD PRODUCT DEVELOPMENT OF ISLAMIC BANK IN INDONESIA

This study aim to examine the financing growth of Islamic bank in Indonesia with the provisions system and proof that there is a procyclicality and income smoothing behavior of bank manager. The objects of this study are Islamic Banks and Islamic Business Unit in Indonesia period of 2000 – 2016. This study specifically estimates a different calculation in every component of discretionary and non-discretionary in Islamic bank financing with the variable controlsuch as deposit growth, equity ratio, and total asset. The equation will be tested by using the regression system estimation and the validity tested by AR and Hansen test. The result of this study quantitatively proved that there is a pattern of procyclicality behavior in Islamic bank consistent with hypothesis and significantly has negative correlation described by the relation of loan loss provision with the coefficient of GDP growth rate: -0,207. From this result in accordance with the fiqh platform, for all forms of muamalah is “al ashlufilmu?amalahilla al-ibahahyadulludaliil „alaatahriimiha” (the origin of everything is allowed unless there is proof that forbid it), which means that by using the theory of fiqh rules the product development of Islamic bank can be done and expanded.

Financial Efficiency of Islamic Business Unit at Regional Development Banks in Java Island

Research on Islamic banks have grown rapidly, however, a special study on the regional development banks which belong to the local government. The purpose of this study was to determine the level of efficiency of sharia business unit’s financial performance, regional bank development in Java Island, Indonesia. The method used is the Data Envelop Analysis with five banks and the period 2013 to 2015. The efficiency is an important factor in the development of a bank. Our results showed that the general level of efficiency sharia business unit Regional Development bank on the island of Java has achieved good efficiency, although there are some banks and a few years yet to achieve efficiency. The main factors that cause inefficiency bank among other operating costs and expenses for the results.

THE COMMITMENT TO ISLAMIC WORK ETHICS AMONG ISLAMIC BANKING EMPLOYEES IN ACEH

Ethics play an important role in producing ethical staffs for managing an organization. Ethical staffs perform their duties ethically and offer the best services to the customers. Islamic banking institutions, as Shariah compliant financial institutions, should encourage their employees to implement Islamic work ethics (IWE) to enhance their performance. This article aims to examine the level of IWE commitment among employees of Islamic banks in Aceh. It specifically compares the employee’s commitment level on IWE between three categories of Islamic banking in Aceh, namely, the Islamic Commercial Bank (ICB), the Islamic Business Unit (IBU), and the Islamic Rural Bank (IRB). The study employed a quantitative approach in collecting data. The questionnaire surveys were distributed to 268 employees in seven Islamic banks. Of that number, only 208 were usable. The results of the findings reveal that employees of the selected Islamic banks in Aceh have very high commitment to implementing IWE in their daily routines. An analysis of the banking categories shows that the employees who work within the IBU have the highest commitment in practicing IWE in their daily jobs, and, statistically, differ from those who work in the other two categories.

THE COMMITMENT TO ISLAMIC WORK ETHICS AMONG ISLAMIC BANKING EMPLOYEES IN ACEH

Ethics play an important role in producing ethical staffs for managing an organization. Ethical staffs perform their duties ethically and offer the best services to the customers. Islamic banking institutions, as Shariah compliant financial institutions, should encourage their employees to implement Islamic work ethics (IWE) to enhance their performance. This article aims to examine the level of IWE commitment among employees of Islamic banks in Aceh. It specifically compares the employee’s commitment level on IWE between three categories of Islamic banking in Aceh, namely, the Islamic Commercial Bank (ICB), the Islamic Business Unit (IBU), and the Islamic Rural Bank (IRB). The study employed a quantitative approach in collecting data. The questionnaire surveys were distributed to 268 employees in seven Islamic banks. Of that number, only 208 1 Ph.D Candidate, Department of Shariah and Management, Academy of Islamic Studies, University of Malaya, Kuala Lumpur, Malaysia; and Senior Lecturer, Department of Islamic Banking, Ar-Raniry State Islamic University, Banda Aceh, Indonesia, azharsyah@gmail.com 2 Senior Lecturer, Department of Shariah and Management, Academy of Islamic Studies, University of Malaya, Kuala Lumpur, azzah@um.edu.my Jurnal Syariah, Jil. 24, Bil. 1 (2016) 93-114 94 were usable. The results of the findings reveal that employees of the selected Islamic banks in Aceh have very high commitment to implementing IWE in their daily routines. An analysis of the banking categories shows that the employees who work within the IBU have the highest commitment in practicing IWE in their daily jobs, and, statistically, differ from those who work in the other two categories.

FINANCIAL PERFORMANCE OF ISLAMIC BANKING AFTER THE GLOBAL FINANCIAL CRISIS: A COMPARISON BETWEEN ISLAMIC COMMERCIAL BANKS AND ISLAMIC BUSINESS UNIT BANKS IN INDONESIA

<p>The global financial crisis has affected some industries or non-industries around the world. It has also impacted to Islamic banking in Indonesia, especially after 2007-2008. It has been recorded the Islamic banking industry in Indonesia shows a speedy recovery from the impact of the global financial crisis. Thus, this study aims to evaluate and examine the differences of Islamic banking’s financial performance after the global financial crisis in Indonesia. The financial performances in this study are profitability ratio (Return on Asset (ROA) and Return on Equity (ROE)), liquidity ratio (Financing to Deposit Ratio (FDR) and Current Asset Ratio (CAR)) and solvency risk ratio (Equity Multiplier (EM) and Debt to Equity Ratio (DER)). The samples in this study are the six Islamic banks from Islamic Commercial Banks (Bank Usaha Sharia (BUS)) and Islamic Business Unit Banks (Unit Usaha Sharia (UUS)) in Indonesia. Based on the results shows by the descriptive statistic, UUS is more effective in using their assets to generate income compared to BUS, but BUS is greater to manage their financing and more liquid than UUS whose has higher risk than BUS during 2009-2013. Independent sample t-test shows that there is significant difference in terms of profitability, liquidity and solvency risk ratio between BUS and UUS Indonesia during 2009-2013</p>

OFFICE CHANNELING AND ITS IMPACT ON THE PROFITABILITY OF ISLAMIC BANK

The purpose of this paper is to analyze that the office channeling policy that based on Bank Indonesia’s rule no. 8/3/PBI/2006 had an on the profitability of Islamic banking industry in Indonesia. This research used ordinary least square regression to analyze the impact that office channeling as a dummy variable in this model. The result showed that office channeling didn’t have a bearing on the profit rate of Islamic banking industry that measured. According to from this result, either regulator, parent’s bank, and Islamic business unit had the obligation increase the socialization, education, and services to the customers

Kinerja Bank Konvensional Pasca Spin Off Unit Usaha Syariah

In the last decade there are four conventional commercial banks succeeds spin off their Islamic Business Unit to become independent commercial Islamic banks. This research objective was to answer the question: do these conventional banks have a different financial performance (CAR, NPL, BOPO, ROA and LDR) between before and after they spin off its Islamic Business Units. This research using Difference Test succeeds to proof that there is difference between before and after they spin off its Islamic Business Unit among these four conventional banks. This research elaborates the financial performance difference using quarterly period of two years’ financial reports before and after spin off each. Hypothesis testing proofed that these five financial ratios shows difference performance between before and after.

TIPE PEMISAHAN DAN PENGARUHNYA TERHADAP NILAI ASET BANK UMUM SYARIAH HASIL PEMISAHAN

The objective of this research is to analyze the impact of spinoff type to total asset in spinoffs banks.The analysis technique used in this paper is panel regression with fixed effect model. The result shows that thespinoff type didn’t have an influence to total asset in spinoffs banks. This research also shows that the spinoffpolicy is to be evaluated because the economy of scale from the existing Islamic business units is still small. Thespinoff policy is one of the business strategies that can be done to develop the Islamic banking industry, but thispolicy is not the final goal of Islamic banking industry. The most important thing today is to create a healthy andcompetitive Islamic banking industry.Keywords: spinoff type; panel regression; islamic banks, bank asset

PENGARUH TIPE PEMISAHAN TERHADAP PENYALURAN PEMBIAYAAN PADA BANK UMUM SYARIAH HASIL PEMISAHAN

The Islamic business unit spinoff has taken two forms such as pure spinoff and spinoff withacquisition, convert, and merger. The objective of this research is to analyze the impact ofspinoff type to financing in spinoffs banks. The analysis technique that used in this paper ispanel regression with random effect model. The result shows that the spinoff type didn’t havean influence to financing in spinoffs banks. The implication of this result is the spinoffs typedecision depend on business consideration that the most useful and practice.

PENGARUH BAGI HASIL DAN JUMLAH CABANG TERHADAP DEPOSITO MUDHARABAH BANK SYARIAH

Islamic banks are now experiencing rapid development in Indonesia. This can be seen by the increasing level of customer confidence in investing their funds in Islamic banks. This research aims to influence P rofits Sharing and Amount of Network Branches to The Mudharabah Deposits in Islamic bank in Indonesia 2010-2013. Population of this research are Islamic banks and Islamic business units. This research uses secondary data taken from Islamic Banking Statistics from the official website of Bank Indonesia and the Central Bureau of Statistics. Data analysis techniques that used in this research is multiple regression analysis. These results indicate that profit sharing does not effect to m udharabah deposits. Predictive ability of four variables on Mudharabah deposits amounted to 96,7%, while the remaining 3,3% that influenced by other factor s out of the research model. The conclusion of the research is in partial profit sharing variable does not affect to the deposits mud h araba h . Meanwhile, amount of network branches has positive impact to the deposits mud h araba h. Suggestions for further research are expected to use data with a longer period of time, add another independent variable and research third party funds other deposits mud h araba h . Keywords :Mudharaba h Deposits;Profit Sharing;Islamic Bankin g,

TIPE PEMISAHAN DAN PENGARUHNYA TERHADAP LABA PADA BANK UMUM SYARIAH HASIL PEMISAHAN

The aim of this research is to analyze if there is a difference between the spinoff's type and profit at spinoff's bank. There are two type of spinoff in Indonesian Islamic banking industry, such as: spinoff that using acquisition, convert, merger and spinoff; and; pure spinoff. This research is using panel regression with random effect. The result shows there is no difference between type of spinoff and operational profit at spinoffs bank. This result implies that the spinoff type is decided according the business strategy that are going to choose by the parent's bank. There are a lot of factors that are going to be considered to choose the spinoff's type for separate the Islamic business unit from its parent's bank.

Determinan Pembiayaan Murabahah Pada Unit Usaha Syariah: Model Regresi Panel

Determinant of Murabahah Financing in Islamic Business Unit: Panel Regression Model Financing is one main activity in Islamic banking operations. The aim of this research is to determine the factors that influence the financing in Islamic business unit. This research is using panel regression as a tool of analysis. The sample that used in this object is five Islamic business unit, such as Bank of BTN, Bank of Permata, Bank of CIMB Niaga, Bank of DKI, and Bank of West Kalimantan. The result shows that only deposit funds that have an influence to murabahah financing in Islamic business unit, otherwise the operational efficiency ratio (BOPO) doesn't have an impact on financing. DOI: 10.15408/ess.v6i2.3776