Islamic Commercial Banks Research Articles

ISLAMIC CORPORATE GOVERNANCE AND ISLAMICITY PERFORMANCE INDEX ON FRAUD IN SHARIA COMMERCIAL BANKS

This study aims to impact Islamic corporate governance and fraud in Islamic banks. The Effect of Islamic Corporate Governance on Fraud in Islamic Commercial Banks. And Effect of Islamicity Performance Index on Fraud in Islamic Commercial Banks. This study uses quantitative methods and panel data on Islamic corporate governance variables. Islamicity Performance Index, and ICG and IPI Interaction. The results of this study The effect of positive ICG on fraud Regression Test Results The ICG variable has a coefficient of 4,377,977 and a probability of 0.015, more excellent than 0.05 based on the test. The ICG variable statistically means that the higher the ICG score, the more fraud cases increase, which results in a positive IPI influence on fraud. The results of the Regression Test Variable X1 has a coefficient of 3.536459 and a probability of 0.043, which is less than 0.05, while the variable X2 has a coefficient of -6.62755 and a probability of 0.003 is less than 0.05, which means that isn't it according to theory? If ICG and IPI increase, fraud will decrease, and Interaction Results in This Research Produce a new Variable. Regression Test Results Variable X1 has a coefficient of 17.47975 and a Probability of 0.007, which is less than 0.05, and Variable X2 has a coefficient of 4.735987 and a Probability of 0.406, which is more significant than 0.05 can be interpreted in the same direction and the Interaction Between X1, X2 ICG and IPI can be said to be Perfect that ICG Initially positive, from the ICG results, IPI becomes negative. Significantly, the higher the IPI score. An increase in ICG will reduce fraud cases.

TEST OF DIFFERENT LEVELS OF GENERAL BANKING HEALTH LISTED ON THE INDONESIAN STOCK EXCHANGE 2018-2022 USING THE RGEC METHOD

This research aims to analyze the comparative level of health of commercial banks using the RGEC method: (Risk profile, Good Cooperative Governance, Earnings and Capital). The use of the RGEC method has been determined by BI (Bank Indonesia) and has been used since 2012 and is stipulated in PBI number 13/1/PBI/2011. The objects used in this research are Islamic commercial banks with a total of 9 banks that have the largest assets and are registered on the BEI (Financial Services Authority) and have annual reports and GCG (Good Corporate Governance) reports. Research that uses quantitative methods uses comparative analysis and uses non-parametric tests. Based on the research results, show that the risk profile variable is assessed using LDR (Loan to Deposit Ratio), the GCG variable comes from PDN Net Open Exchange Position, the Earnings variable uses ROA (Return On Assets), the Capital variable is based on risk profile factors which are measured using CAR (Capital Adequacy). Ratio), Bank health variables are measured using NOM (Net Operating Margin). Variables that have ratios because this research uses ratio values as a comparison. Significant comparison results indicate that there are significant differences in each variable.

Indonesia Islamic Banks Performance Pre and During Covid-19 Pandemic Based on the Maqāsid Sharīʿah Index

This study try to analyze and compare the performance of Islamic commercial banks pre and during COVID-19 (2018- 2021) based on the Maqāsid ul-sharīʿah index using the Simple Additive Weighting Method (SAW) which was carried out on 11 Islamic commercial banks in Indonesia and to provide deeper information to stakeholders regarding the performance of Islamic commercial banks which are different with conventional bank. The result show that there were eight banks that experienced an increase in Maqāsid ul-sharīʿah performance from the pre-COVID- 19 period, while 3 other banks decreased in terms of performance. On the other hand, when viewed from a rating comparison perspective, there are four banks that have experienced an increase in rating and 3 banks have decreased in terms of rating, while the remaining four banks are at the same rating.

Factors Affecting Financial Stability of Sharia Banks in Indonesia

To ensure the financial stability of Indonesian banks, especially Sharia banks, it is essential to focus on various factors and elements. This study investigates the endogenous and exogenous factors influencing the financial stability of Sharia banks in Indonesia. The study utilized data from the annual financial statements of Sharia banks in Indonesia spanning from 2010 to 2021. Panel data regression served as the analytical tool for the research. The findings indicate that the stability of Sharia commercial banks in Indonesia is influenced by both capital structure and credit risk. Financial leverage also affects sharia bank’s financial stability. While ownership distinguishes a bank in terms of organizational structure, it does not necessarily guarantee stability. Islamic commercial banks remain stable amid the COVID-19 pandemic, showing no significant impact on their overall stability. These findings will enhance bank understanding of the risks faced by banks and form the basis for new regulatory efforts to strengthen overall risk management, including liquidity risk and credit risk.

The Effect of Musyarakah Financing on Economic Development in Indonesia (Case Study on Islamic Commercial Banks for the 2018-2022 Period)

This research is motivated by the inequality of economic development in Indonesia through the achievement of the Human Development Index in each province in Indonesia. Then, Islamic Commercial Banks carry out the technical sharing of the results of the musyarakah financing business with net revenue sharing, so that Islamic Commercial Banks tend not to know the working capital rotated by customers experiencing losses or profits. The purpose of this study is to analyze the effect of musyarakah financing on economic development. This study uses an empirical juridical approach with quantitative research types and analytical descriptive research methods. The data used is panel data from Islamic Commercial Banks registered with the Financial Services Authority (OJK) for the 2018-2022 period. The sampling method used in this research is a non-probability sampling technique, while the data processing method is regression analysis using EViews 12. The results of this study indicate that musyarakah financing has an insignificant positive effect on economic development with the Human Development Index as an indicator with a significance level of 0.2113 greater than 0.05. The coefficient of determination with an adjusted R square value of 0.017605 indicates that the influence of musyarakah on economic development is 1.7605%, while the remaining 98.2395% is influenced by other variables outside the study.

Pengaruh Faktor Internal Dan Faktor Eksternal Terhadap Non Performing Financing (NPF) Pada Pembiayaan Bank Umum Syariah

This research aims to analyze the influence of internal factors and external factors of Sharia Commercial Banks on the NPF for murabahah financing, NPF for musyarakah financing, NPF for mudharabah financing, NPF for ijarah financing, NPF for istishna financing, and NPF for qardh financing. The research method used is quantitative research using secondary data from Bank Muamalat Indonesia, Bank BCA Syariah, Bank Panin Syariah, Bank Bukopin Syariah, Bank Mega Syariah, and Bank Victoria Syariah, all of which are the results of financial reports published by the OJK during the quarterly period. 1 of 2013 to the fourth quarter of 2022. The results of this research are that internal factors and external factors have an influence on NPF in murabahah, musyarakah and istishna financing in sharia commercial banks. Meanwhile, the NPF for mudharabah, ijarah and qardh financing is not influenced by internal and external factors in Islamic commercial banks.

Does Banking Risk And Macroeconomics Variables Matter For Agricultural Sector? Evidence From Lampung Province

This research is conducted to investigate the factors that influence the financing of the agricultural sector on Islamic banking in Lampung Province. The data used in this research is time series data from Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) in Lampung Province totaling 120 samples. The data are obtained from the statistical reports of the Financial Services Authority (OJK) on sharia banking in Indonesia, and data from the Indonesia Statistics (BPS). The method used is a quantitative analysis using multiple linear regression. This study shows that the variables of Financing to Deposit Ratio (FDR) and TPF have a positive and significant correlation. However, the SBIS variable has a negative and insignificant effect on Agricultural sector financing. On the other hand, the Non-Performing Financing (NPF) variable has a negative and significant correlation, and the variable Inflation has a positive and insignificant on the agricultural sector financing in Lampung province.

The Influence of Sharia Supervisory Board Characteristics on the Financial Performance of Islamic Banks

This study aims to analyze the influence of the characteristics of the Sharia Supervisory Board (DPS) on the financial performance of Islamic Banks. The research focus includes variables such as DPS size, DPS educational qualifications, number of DPS meetings, DPS reputation, bank size, and bank age. The data used are financial statements and DPS profiles of Islamic Commercial Banks (BUS) during the 2016-2020 period. Literature study and content analysis methods are used to collect and analyze data from previous studies. The results showed that DPS size has a significant negative effect on Return on Assets (ROA), while DPS educational qualifications have a significant positive impact on ROA. The number of DPS meetings has no significant effect on financial performance, and the DPS reputation variable also has no significant effect on ROA. In contrast, bank size and bank age have a significant positive impact on the financial performance of Islamic banks. These findings provide a deeper understanding of the factors that may affect the financial performance of Islamic banks, with implications for the improvement of corporate governance and related policies in the Islamic banking sector. Suggestions for future research include further analysis of contextual factors and risk management policies that may moderate the relationship between DPS characteristics and financial performance.

FLUKTUASI KINERJA KEUANGAN PERBANKAN SYARIAH: ANALISIS PADA IMPLEMENTASI PROFIT LOSS SHARING DAN MANAJEMEN RISIKO

Profit Loss Sharing (PLS) plays a crucial role in determining the potential value of profits in Islamic banking. The PLS profit-sharing system indicates the success or failure in the financing investments undertaken by the banks. To generate profits from the financing investments, it is essential to have a reliable and sustainable risk management. In this study, the risk management variable will be comprehensively examined in relation to its impact on supporting the implementation of PLS systems (mudharabah and musyarakah) on financial performance. The analytical method employed is quantitative analysis with the support of the E-Views application program. The research sample includes 11 Islamic commercial banks in Indonesia, with an observation period from 2017 to 2022. The research analysis results demonstrate that mudharabah financing and musyarakah financing have a positive influence on financial performance. Risk management weakens the influence of mudharabah financing and musyarakah financing on financial performance. In terms of direct influence, risk management exerts the strongest impact compared to mudharabah financing and musyarakah financing. Mudharabah financing has the smallest impact on the value of financial performance.

ANALISIS PENGARUH CAR, FDR, DAN NPF TERHADAP PROFITABILITAS PADA BANK UMUM SYARIAH DI INDONESIA

The purpose of this study is to determine the effect of capital adequacy ratio, financing to deposit ratio, and non-performing financing. Sample selection in this study was carried out by purposive sampling. Based on the criteria, 54 financial statements of Islamic commercial banks were sampled. The data analysis techniques used in this study are descriptive statistical tests, classical assumption tests, multiple linear regression tests, and model feasibility tests. The results of the analysis show that the capital adequacy ratio has a positive effect on profitability, while the financing to deposit ratio does not affect profitability, and then non-performing financing has a negative effect on profitability. Keywords: Profitability, capital adequacy ratio, financing to deposit ratio, and non-performing financing.

Exploring Contributing Factors to Environmental Disclosures in Islamic Commercial Banks of Indonesia

This study aims to provide an overview and analysis of the influence of policy and corporate governance, including Sharia supervisory board, firm size, firm age, and leverage on green banking disclosure in Islamic commercial banks in Indonesia from 2017 to 2021. This study uses a quantitative approach with panel data regression analysis to examine the causal relationship between the independent variables (policy, board size, board of commissioners, Sharia Supervisory Board, firm size, firm age, and leverage) and green banking disclosures. Islamic commercial banks registered with FSA and IDX are the study population. The sampling method in this study was purposive sampling, with a total sample of six Islamic commercial banks for five years of research. The results of this study show that the company's age, the size of the company, the size of the board of directors, and the board of commissioners have a significant effect on the disclosure of green banking. Meanwhile, Sharia board and leverage do not significantly affect green banking disclosure. This study implies that applying green banking to overcome environmental problems can only be realized by regulation alone, considering the importance of other factors from the bank's side.

The influence of Natural Certainty Contract (NCC) and Natural Uncertainty Contract (NUC) financings on the financial sustainability of Islamic commercial banks in Indonesia

IntroductionResearch on Islamic banking in Indonesia has extensively addressed its performance and stability. However, studies on stability from the perspective of Natural Certainty Contract and Natural Uncertainty Contract financing have been relatively scarce.ObjectivesThis study measures how profitability mediates the impact of Natural Certainty Contract (NCC) financing and Natural Uncertainty Contract (NUC) financing on financial sustainability.MethodThe research utilizes secondary data obtained from quarterly reports for the periods I-IV of 2018-2022 on the official website of Sharia commercial banks. All Sharia commercial banks in Indonesia listed in the OJK for the period 2018-2022 constitute the population for this study, while the sample consists of Sharia commercial banks in Indonesia that meet the criteria. The sampling method employed is purposive sampling, resulting in eight Sharia commercial banks in Indonesia as the sample based on predetermined criteria.ResultsThe findings of this study indicate that NCC financing negatively influences profitability, NUC financing has no impact on profitability, NCC financing positively influences financial sustainability, NUC financing negatively influences financial sustainability, profitability (ROA) positively influences financial sustainability, NCC financing indirectly negatively affects financial sustainability through profitability, and NUC financing indirectly has no impact on financial sustainability through profitability.ImplicationsIslamic commercial banks should be more selective in financing allocation, focusing on options with lower risks. Furthermore, Islamic commercial banks should also manage financing effectively to minimize existing risks, thereby enhancing profitability.Originality/NoveltyThis study contributes to enrich studies in the field of Islamic finance with emphasize on Islamic commercial banks profitability and financial sustainability.

PENGARUH PEMBIAYAAN MURABAHAH, MUDHARABAH, MUSYARAKAH TERHADAP ROA DI BANK UMUM SYARIAH

This research has the objective of discussing to find out the impact of murabahah receivables, mudharabah financing, and musyarakah financing on ROA as an asset in return for Islamic Commercial Banks in 2012-2022. This study used a descriptive method with a quantitative approach using the SPPS 26 tool. The research technique used a purposive side. Data taken annually from the Financial Services Authority (OJK) website. Data analysis used multiple linear regression analysis, t test (partial), and F test (simultaneous). The population of this study is all income and ups and downs of financing in the financial statements of Islamic Commercial Banks. While the sample used is in the form of annual financial reports which contain income from murabahah receivables, Mudharabah financing and musyarakah financing at Islamic Commercial Banks in 2014-2022. The results of the (partial) test are that the three variables murabhah, mudharah, and musyarakah have no effect on the ROA variable. Whereas in the F test (simultaneous) of the three variables murabhah, mudharabah, and musyarakah there is no significant effect on the ROA of Islamic Commercial Banks 2014-2022.

Pengaruh Islamicity Performance Index Terkait Nilai Perusahaan dengan Konsep Maqashid As-Syariah

The Islamicity Performance Index is a performance measurement tool that is able to reveal the materialistic and spiritual values ​​that exist in sharia companies. Performance measurement using the Islamicity Performance Index is only based on information available in the annual financial reports. This index refers to Profit Sharing Ratio, Zakat Performance Ratio, Equitable Ratio, Director Employess Welfare Ratio, Islamic investment vs non-Islamic investment, Islamic income vs non-Islamic income and AAOFI index. The results of this study indicate that Islamic financial performance (Islamicity Performance Index) is able to significantly and positively influence company value as measured using the concept of Maqashid as-Syariah. So that if the Islamic financial performance (Islamicity Performance Index) in the ranking is considered UNSATISFACTORY, it will have an impact on company value in the Maqashid as-Syariah concept which also tends to get a bad rating in the eyes of investors. And vice versa, if the rating is considered SATISFACTORY, then the value of the company will tend to get a good assessment and added value in the eyes of investors. Firm size is able to negatively moderate (weaken) the relationship of the Islamicity Performance Index to firm value in Islamic Commercial Bank companies. The results that occurred in this study could also be caused by macroeconomic factors that greatly affect the performance of Islamic banking in Indonesia with an increase in inflation which has a negative impact on Islamic banking financial performance (ROA).
 Keywords: Islamicity Performance Index; syariah companies; Maqashid as-Syariah

Literature Review: Perkembangan dan Kinerja Bank Umum Syariah di Indonesia Tahun 2014-2023

Purpose: This study investigates the development and performance of Islamic commercial banks in Indonesia from 2013 to the present, focusing on the factors that influence growth and the challenges faced by the Islamic banking sector in supporting economic stability and inclusiveness. Methodology/approach: This research uses a literature review method of 30 previous research articles from the Google Scholar and Research Gate sites, which measure the financial performance of Islamic Banks in Indonesia in terms of profitability during the publication period–2013-2023. Results/findings: This research study reveals that several studies on Islamic Banks in Indonesia use various indicators to measure financial performance and bank health, > 60% of researchers use the variable measurement ratios ROA, ROE, BOPO, CAR, FDR and NPF while the rest some use the LDR, RGEC, NIM, CGC, ETA, EFF, NPL and DPK ratios Limitations: The use of research methods in the form of literature that focuses on the analysis of several previous studies conducted by Google Scholar and ResearchGate can reduce the validity and generality of the research results. The literature review does not involve collecting primary data through observation or experimentation; therefore, the information obtained is descriptive and does not allow the identification of causal relationships. Contribution: Through a careful literature review of previous articles, this study succeeded in identifying the main trends, innovations, and challenges faced by the Islamic banking sector in Indonesia.

The Effect of Alma Relationship Implementation On Sharia Bangking In Indonesia

This study aims to determine the effect of Asset Liability Management on the financial performance of Sharia Commercial Banks in 2017-2022. Asset Liability Management is the activity of optimizing the balance sheet structure of Islamic banks with various alternatives available to maximize profits while limiting risk to a minimum. The research method used in this study is quantitative, with multiple linear regression analysis using analytical methods with the help of the SPSS program, tests carried out such as regression tests and classical assumption tests with exogenous variables, namely Asset Liability Management and endogenous variables are financial performance. This research takes data from the annual financial statements of Islamic Commercial Banks, data obtained from the website of the Financial Services Authority in the financial statements for the year at Islamic commercial banks for the 2017-2022 period. In determining the sample used is purposive sampling, namely the determination of samples based on criteria, namely banking companies registered with Sharia Commercial Banks during 2017-2018. This study found that ALMA on the CAR and FDR variables had no effect on Financial Performance on the ROA variable. Meanwhile, NIM affects Financial Performance on the ROA variable. Application of ALMA to financial performance. The results of data processing show that CAR has no effect on ROA with a significant value of 0.165 and NIM has an effect on ROA with a significant value of 0.022 while FDR has no effect on ROA with a significant value of 0.135.

Productivity Comparison between Conventional and Islamic Commercial Banks in Indonesia during the COVID-19 Pandemic

This study was conducted to measure and compare the productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic. The number of samples used in this study was 105 banks consisting of 95 conventional banks and 10 Islamic banks. The level of productivity was measured using the Malmquist Productivity Index (MPI) method and Data Envelopment Analysis (DEA) with an intermediation approach, while the productivity of conventional and Islamic commercial banks was compared using normality and different tests. The results showed that the productivity level of the Islamic banks with a Total Factor Productivity Changes (TFPCH) value of 1.001 was driven by technological advances. Meanwhile, the conventional banks were not productive. On the other hand, the results of the different tests showed that there was no significant difference between the productivity level of the conventional and Islamic banks. Conventional banks must enhance innovations in the use of technology in their operational activities to improve their productivity and maintain their high efficiency achievement. Meanwhile, Islamic banks could improve their efficiency in the operational activities so that they would achieve higher productivity and to innovate continually with the use of technology. During the study observation, there was no study comparing between the productivity level of conventional and Islamic commercial banks during the COVID-19 pandemic in Indonesia. Therefore, this research was the first study to discuss the comparison of productivity level between conventional and Islamic commercial banks in Indonesia during the COVID-19 pandemic.

Non-performing Financing and Rate of Return on Mudharaba and Musharaka Contracts of Islamic Banks Before and During the COVID-19 Period

Non-performing Financing and Rate of Return on Mudharaba and Musharaka Contracts of Islamic Banks Before and During the COVID-19 Period

Financial Performance of Islamic Commercial Banks Through Efficiency Levels and Non-Performing Financing Before and During The Covid-19 Pandemic

The real sector and the financial sector have been affected by the Covid-19 pandemic for approximately 2 years. It condition makes the banking financial sector pay attention to the level of operational expenses efficiency and be careful in channeling financing in order to reduce the occurrence of bad financing caused by defaults from customers. Analysis of the capabilities of Islamic banks in Indonesia in terms of operational cost efficiency and managing problematic financing in conditions before and during the Covid-19 pandemic so that the ability of Islamic banks to manage their financial performance will be known is the aim of this research. Saturated sampling was the technique for sampling this research from the research population of 14 Islamic commercial banks in Indonesia. Documentation is used as a technique in collecting data from the combined financial reports of 14 Islamic commercial banks. Data before the pandemic can be seen from the 2018-2019 financial reports, while 2020-2021 data during the pandemic. Paired sample t-test with Jamovi media was used as a data analysis technique. The findings of this research show that during the Covid-19 pandemic, the level of efficiency and non-performing financing of Islamic banks has decreased, meaning that the financial performance of Islamic banks is better and operating costs are more efficient, problem financing is reduced, so that the potential for increased profitability is higher. Keywords: operating expenses and operational income, non-performing financing, financial performance, Islamic banking, covid-19.

The Effect of Islamic Corporate Governance, Firm Characteristic on Capital Structure and Financial Performance of Sharia Commercial Banks Registered the Financial Services Authority

This study examines the relationship between Islamic corporate governance, firm characteristics on capital structure and financial performance in Islamic Commercial Banks. The data analysis technique uses Partial Least Square (PLS), with structural equations (SEM) based on components or variants, on annual data from 2017 to 2021. The findings show that three determinants significantly affect the financial performance of the five hypotheses proposed. Islamic corporate governance has a significant effect on financial performance in a negative direction, and a significant positive effect on capital structure Firm characteristic has no significant effect on capital structure and financial performance. Capital structure factors influence financial performance. The practical implications of this study emphasize the important role of the sharia supervisory board and independent commissioners in improving the financial performance of Islamic commercial banks