Islamic Financial Institutions Research Articles

The mediating effect of perceived value on customer loyalty of BMT NU East Java

Purpose – The purpose of this research is to analyze and examine the effect of Islamic marketing mix, service quality, and product quality on BMT customer loyalty, with perceived value as a mediating variable.Methodology – This study is a quantitative research with 200 samples of BMT NU East Java customers. It uses non-probability sampling, and data collected will be analyzed with the help of SPSS software to obtain statistical correlation and regression techniques (validity test, reliability test, classic assumption test, path analysis, t-test, and trimming test).Findings – The results show that service quality and product quality have a significant effect on perceived value and customer loyalty, while the Islamic marketing mix has no significant effect on perceived value and customer loyalty. Meanwhile, perceived value has a significant effect on customer loyalty. Perceived value can mediate the Islamic Marketing mix, service quality, and product quality variables in customer loyalty.Implications – This research provides input for related parties, especially BMT NU East Java and every further Islamic financial institution, to optimize services and financial products to get more attention from customers, both new customers and old customers.Originality – There is no research that discusses microfinance (BMT NU) using perceived value, product quality, service quality, and Islamic marketing mix as variables. These variables are variable that have most effect on loyalty of microfinance’s consumers.

Zakat-based urban farming: A tool for poverty alleviation, community empowerment, financial inclusion, and food security

Purpose – This study introduces a zakat-based model aimed at poverty reduction and enhancing food security in urban settings. Drawing upon the principles of Islamic social finance, the model integrates urban farming with the utilization of zakat, charity, and corporate social responsibility funds, offering sustainable financial avenues for disadvantaged individuals and social enterprises. The primary objective of this research is to design and pilot test a practical model that not only generates consistent financial income, but also bolsters food security and advances financial inclusion. Methodology – This study reviews various models that have used Zakat funds for economic empowerment, conduct interviews, and hold focus group discussions. It proposes a zakat-based urban farming model for poverty alleviation and community empowerment using the theory of change. In collaboration with a leading Islamic bank in Malaysia, the model was pilot tested across selected residential communities in Malaysia. Finding – The research findings demonstrated positive impacts both at the individual participant level and within the broader community. Serving as a replicable blueprint, this project envisions the transformation of urban spaces into productive landscapes, thereby ensuring sustainable livelihood, amplifying food security, and promoting financial inclusion. Implication – Through this Zakat-based approach, the research underscores the profound impact of urban farming in catalyzing socio-economic change and advancing efforts towards poverty alleviation.Originality – No previous research has introduced and pilot-tested Zakat-based urban farming solutions for Islamic financial institutions as a tool for Poverty Alleviation and financial inclusion

Development of the UAE financial system in a rapidly changing economic landscape

The UAE financial system is the country’s leading non+hydrocarbon sector which has shown good growth in the post–pandemic period. The country’s ability to become a leader in innovative technology not only among the GCC countries but also among the countries in the MENA region is beyond doubt. After the global financial crisis, which also affected the wealthy emirates of Dubai and Abu Dhabi, the UAE government took the vector to create a risk–oriented innovative financial system. The creation of major international financial centers, such as Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM), was the logical concept for creating the above system. Islamic financial institutions represented in the UAE operate within the framework of clear rules and standards that have been implemented by supervisory and regulatory authorities, precisely to build high–quality and transparent relationships between counterparties not only within one country, but also at the international level.

Assessing the Productivity and Technological Changes of Indonesian Zakat Institutions

Measurement of the productivity level of Islamic financial institutions in Indonesia has been widely carried out. However, not much research with the object of research in Islamic social fund institutions, one of which is zakat institutions in Indonesia. This study tries to measure the productivity performance of zakat institutions. This study uses the Malmquist Productivity Index method with DEAP 2.1 software. Data were obtained from eleven zakat institutions with a five-year research period from 2016 to 2020. This study uses the Malmquist Productivity Index method with DEAP 2.1 software. Data were obtained from eleven zakat institutions with a five-year research period from 2016 to 2020. This study is the first study to calculate the productivity level of eleven Indonesian zakat institutions with a research period of the last five years.

Pengaruh Religiusitas, Pemahaman Akuntansi Syariah, dan Pertimbangan Pasar Kerja Terhadap Minat Mahasiswa Akuntansi Syariah UIN Salatiga Berkarir Di Lembaga Keuangan Syariah

The purpose of this study was to determine how the influence of religiosity, understanding of sharia accounting and job market considerations on the interest of sharia accounting students at IAIN Salatiga in a career in Islamic financial institutions. This study uses a quantitative descriptive analysis method with a research instrument questionnaire distributed online with the help of Google form. A total of 70 students majoring in Islamic accounting, class 2018 IAIN Salatiga. The data technique in this study uses Multiple Linear Regression analysis. The results of the analysis show that religiosity does not have a significant effect on the interest of sharia accounting students for careers in Islamic financial institutions. while understanding of sharia accounting and labor market considerations have a significant influence on the interest of sharia accounting students in a career in Islamic financial institutions.Keywords: religiosity, understanding accounting sharia, job market considerations, islamic financial institutions

Konsep Dasar Pembiayaan Dalam Perbankan Syariah

Financing can be interpreted as funding provided by one party to another party. Its function is to support investments that will or have been planned by the institution. Financing can also be interpreted as trust or trust. It means that the financing institution as sahib al-mal puts trust in someone to carry out the mandate given. All such costs must be used properly, fairly, and must be accompanied by clear terms and are responsible for all parties. Every Islamic financial institution has a philosophy of seeking the pleasure of Allah SWT. to acquire the virtues of the world and the hereafter. Therefore, any activities of financial institutions that are considered deviant from religious demands should be avoided. In the implementation of financing, Islamic banks must meet two most important aspects. First, the Shar'i aspect where in every realization of financing to customers must remain guided by Islamic Shari'a. Second, the economic aspect which still considers the profit generation for Islamic banks and for customers.

CHALLENGES IN THE IMPLEMENTATION OF MUDHARABAH FINANCING IN THE ISLAMIC BANKING INDUSTRY

In recent decades, the proliferation of Islamic banking has rendered it a significant entity in the global financial arena, captivating numerous entrepreneurs and businesses with its ethically distinctive financing alternatives. Several Islamic financial institutions adhere robustly to the profit-sharing principle, notably via mudharabah, in product financing. This research paper explains why mudharabah contracts are used in Islamic banking products, focusing on financing schemes, literacy, and the lack of equal access to information. Moreover, within the context of Islamic FinTech, this research highlights high business risk as a pronounced impediment to the efficacious implementation of mudharabah. In addition, this study offers a rigorous analysis of the issues and challenges endemic to mudharabah financing, venturing into perspectives from regulators and Islamic bank customers. This paper utilized a literature review methodology, and data extracted from relevant literature is systematically analyzed to evaluate mudharabah products as a viable business financing model. Conclusively, the insights derived from this research are positioned to formulate strategic recommendations, fostering advancements in implementing mudharabah contracts within Islamic product financing.

Faktor-Faktor Yang Mempengaruhi Tingkat Kepercayaan Masyarakat Terhadap Lembaga Keuangan Syariah: Studi Kasus Masyarakat Kabupaten Labuhan Batu Selatan

The development of Information Technology should make companies grow more rapidly, including Sharia Financial Institutions, both in terms of receiving and distributing funds, but in reality we can see that Islamic financial institutions still tend to be less developed than conventional financial institutions, this is caused by many factors, and Therefore, the aim of this research is to find out whether human resources in Islamic financial institutions, namely employees and the products offered, can influence the level of public trust in Islamic financial institutions, either partially or simultaneously. This type of research is quantitative using a questionnaire as a data collection method which is then tested using multiple linear regression analysis. The research results show that human resources or employees from Islamic Financial Institutions have a positive influence with a significant value of 0.000, while the products offered influence Islamic financial institutions with a significant value of 0.000, while simultaneously the two independent variables have a positive influence with a significance value of 0.000.

Examining the Role of FinTech Services on Customers Retention of Islamic Banks in Pakistan: An Empirical Assessment

The objective of this research is to examine the influence of several variables, such as fintech payments, advisory services, and fin-tech financing, on the retention of customers in Islamic banks. The researcher used quantitative research design and positivistam philosophy to conduct this research. The target population comprises Islamic banking customers, with the sample drawn from 300 individuals holding accounts in the Punjab province of Pakistan. Data collection was facilitated through an adopted questionnaire administered to respondents. The findings reveal a significant impact of FinTech Payments, Advisory Services, and FinTech Financing on customer retention within the Islamic banking industry, showcasing the importance of these elements in shaping customer loyalty. This study stands out for its comprehensive examination of various facets related to FinTech and their direct and indirect effects on customer retention within the unique context of Islamic banking. However, it's crucial to acknowledge a limitation regarding the generalizability of the results beyond the studied population. Despite this constraint, the research offers valuable insights for Islamic financial institutions aiming to bolster customer retention through strategic utilization of FinTech-related elements and the cultivation of trust among their clientele. By embracing these findings, Islamic banks can enhance their customer relationship management strategies and maintain a competitive edge in the evolving financial landscape.

Menggali Konsep Maqashid Syariah: Perspektif Pemikiran Tokoh Islam

This research aims to explore the concept of Maqashid Sharia in the thinking of Islamic figures, namely As-Syaitibi, Al-Ghazali, and Ibn Asyur, with a focus on its potential for adoption in the context of Islamic financial institutions. Maqashid Sharia is the moral foundation for Islamic law, which includes justice, welfare, and protection of human rights. The thoughts of these figures enrich and expand the understanding of the concept, which can become the basis for developing new conceptual models. Through a thought and literature analysis approach, this research will investigate the views of As-Syaitibi, Al-Ghazali, and Ibn Asyur regarding Maqashid Sharia and explore its potential for application in Islamic financial institutions. By producing an integrated conceptual model, it is hoped that this research can provide practical guidance for Islamic financial institutions in carrying out their functions by paying attention to broader moral and social aspects. It is hoped that the results of this research can be a conceptual contribution to the development of Islamic financial institutions, as well as open up space for further research related to the implementation of the Maqashid Sharia concept in the context of Islamic finance.

Analisis Laporan Keberlanjutan Studi Komparasi Bank Syariah Indonesia dan Maybank Islamic Berhad 2019-2022

This study emphasizes the importance of focusing on the sustainability and alignment of Sharia compliance disclosures in the context of Islamic Financial Institutions. Sustainability reporting is becoming increasingly crucial in the financial sector due to growing awareness of global environmental, social, and governance (ESG) issues. The initiative encourages Islamic Financial Institutions (IFIs) to increase transparency and accountability in their sustainability practices.
 
 This study tries explicitly to compare the Sustainability Report Analysis between Bank Syariah Indonesia and Maybank Islamic Berhad for 2019-2022. In this way, the study provides a deeper understanding of how these two institutions manage sustainability and disclosure of Sharia compliance.
 
 By aligning Sharia compliance with sustainability goals, IFIS can actively create a more responsible and ethical financial sector. This will contribute to broader sustainable development efforts, including sustainable economic growth, environmental protection, and Social Empowerment.
 
 This kind of research is essential to ensure that IFIs and other financial institutions understand and adhere to sustainability and Sharia compliance in a balanced manner to balance financial, ethical, and sustainability goals in their services to society.

In Pakistan, the Choice of Requirements for Islamic Easy House Financing by Meezan Bank

Islamic Easy House Financing (IEHF) increased from RS. 6.8 billion to RS 23.3 billion over 10 years. Identifying the factors that affect the satisfaction of both Muslim and non-Muslim clients with Islamic Easy House Financing (IEHF) is significant. This research then considers the major variables that impact Pakistan's choice of Islamic Easy House Finance (IEHF). Questionnaires were distributed to 160 employees of Meezan Islamic Bank. The current study employed a testing strategy called random sampling. The questionnaire was divided into two segments. One segment included data about the segments, while the other segment focused on the factors that influence how Muslims finance their Islamic Easy House (IEHF). The results demonstrate that several significant variables impact the choice of Islamic Easy House Financing (IEHF), including circumstances, management quality, integrity, prominence in the media, and social impact. The most reliable indication is reputation, as most customers feel comfortable choosing Islamic Easy House Finance (IEHF) because Islamic Meezan Bank has a strong reputation and vision. The study needs to be completely structured. The focus also refers to representatives of a single financial institution. Future research may involve personnel from various Islamic financial institutions. Policymakers and directors could use the tests suggested in the current study as a guide for enhancing Islamic Meezan Bank products and services. There will be an article published on Pakistan's Meezan Islamic Bank as part of the study. This research is the first to examine Pakistan's easy-house-choice Shari'ah laws. For experts and scholars concerned about advancements in Pakistan's Meezan Islamic Bank's banking sector, the findings made throughout this research process will be of the utmost importance.

Analysis Concept of Independence of the Sharia Supervisory Board in the Sharia Banking

The Sharia Supervisory Board is obliged to direct, review, and supervise the activities of financial institutions so that it can be believed that they comply with Islamic sharia rules and principles, the fatwa of the Sharia Supervisory Board rules binding the Islamic financial institutions. The Shari'ah Supervisory Board has a heavy and strategic task so it takes a high professional to live it. The objectives of this research are: To find out the role of the Sharia Supervisory Board in supervising and handling the issue of Compliance with Islamic principles in Islamic Banking; To find out the obstacles faced by the Sharia Supervisory Board in upholding sharia economic principles in Sharia Banking; and to find out the steps shown by the Sharia Supervisory Board in upholding the principle of Independence in Sharia Banking. This research uses a conceptual approach that explains the concept of the independence of the Sharia Supervisory Board in carrying out sharia supervision activities in sharia banking. The result of this research is that Supervision in Sharia Banking is carried out to ensure the suitability of all bank operations with sharia principles and rules, namely by issuing fatwas, rules, and directives in fiqh issues which are used as guidelines for management in operating Islamic banks. With regard to independence, members of the Sharia Supervisory Board must not be part of the employees of the Islamic bank. Although he was appointed by the General Meeting of Shareholders, however, the matter of approval must come from the National Sharia Board. The Shari'ah Supervisory Board also has a work system and certain tasks as do other oversight bodies. The absence of influence from directors, commissioners and employees in Sharia Banking is able to shake the decision of the Sharia Supervisory Board in assessing fund distribution and internal audit activities in the Sharia compliance report in Sharia Banking.

A bibliometric review of Islamic economics and finance bibliometric papers: an overview of the future of Islamic economics and finance

PurposeGiven the overlapping themes and periods in specific subjects within Islamic economics and finance bibliometric research, which may yield similar findings in bibliometric studies, it is essential to document the growth of Islamic economic and financial research using bibliometric methodologies. This study aims to understand better the critical bibliometric review trends and scientific advancements in Islamic economics and finance.Design/methodology/approachThis study uses bibliometric analysis, collecting 46 Islamic economics bibliometric papers from the Web of Science Core Collection from 1975 to 2022. The authors generated top scientific scholars, keyword analysis, citation analysis, content analysis and conclusions for journal development using R Biblioshiny, VOSviewer, ATLAS.ti and Excel.FindingsThis study has established a comprehensive bibliometric framework for Islamic economics and finance bibliometric papers, encompassing all critical areas within the discipline and identifying any remaining research gaps. The major significant areas revealed were Islamic social finance and microfinance concerns, which are closely pertinent to the issues of ethics, corporate social responsibility and sustainability, respectively. The authors also identified opportunities for future bibliometric analyses in Islamic economics and finance, which include using more comprehensive databases, refining or broadening search strategies, using advanced techniques and units of analysis and suggesting themes for further exploration.Research limitations/implicationsThe study relies merely on the Web of Science Core Collection database, which provides the most in-depth citations by source for the world’s scientific and scholarly research. Future research may consider expanding its scope to include other databases for a broader range of sources. Furthermore, due to the rise of bibliometric studies in Islamic economics and finance, this study also comments on the saturation of bibliometric studies conducted in several similar areas. While researchers bring their unique analytical perspectives to bibliometrics, this study provides a comprehensive view of existing research in Islamic economics and finance, highlighting well-explored topics and those that remain less studied. Thus, this could assist researchers in determining their future research priorities.Practical implicationsPolicymakers in Islamic financial and economic institutions, including banking institutions, social, financial institutions and halal institutions, should be impacted by this research when making policies or conducting research. The viability of the current Islamic economic and financial ecosystem will be indirectly maintained and managed by these implications.Social implicationsThis comprehensive meta-analysis in Islamic economics and finance is expected to impact the development and sustainability of the Islamic economic and financial ecosystem, promoting societal welfare through applying Islamic economics and finance.Originality/valueThis pioneering bibliometric analysis of Islamic economics and finance papers aims to offer insights and projections for future research in the field. This research contributes to the literature by examining various aspects, including evaluating literature on trending topics, analyzing papers related to research areas and conducting content analysis of existing bibliometric studies in Islamic economics and finance. It specifically groups these studies around fundamental topics, summarizes findings from contemporary research and identifies emerging research gaps.

Jurisprudential Conditioning of the Takaful Insurance Contract: A Case Study of Islamic Insurance in Jordan

This study aims to elucidate the reality of Takaful insurance, its juristic adaptation, and the impact of this adaptation on Islamic legal rulings. It also seeks to assess the extent of compatibility of the practical applications of Takaful insurance carried out by the Jordan Islamic Insurance Company with the decisions of the Islamic Fiqh Academy and the Sharia standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). To this end, the research begins by presenting the reality of Takaful insurance, highlighting its differences from commercial insurance, and discussing its major juristic adaptations. The study also examines the juristic opinions regarding the Sharia rulings on the applications of Takaful insurance. Since the Sharia rulings on Takaful insurance are based on its juristic adaptation and its application in Islamic insurance companies, the research attempts to uncover the mechanisms for implementing this contract in the Jordan Islamic Insurance Company. This is done through a specific questionnaire developed based on AAOIFI standards and the decisions of the Islamic Fiqh Academy, distributed to managers and employees of the Islamic insurance company, as well as experts, academics, and clients of the Islamic insurance company with extensive experience in this field. The research concludes, after juristic discussions, that the best juristic adaptation for the Takaful insurance contract is mutual consideration with minimal permissible excess, and that there is no difference between Islamic insurance contracts and commercial insurance if both are applied in an Islamic company.

A Comparative Analysis on Islamic Bank Performance and Efficiency Risk: Pre and Post IFSA 2013

It is recognized that performance of the banking industry has an impact to the economic growth of a developed economies. The performance of the bank may impact the growth of the economy, as profits may shape the customers’ decision on investments and savings. Regulation affecting the design of banking governance structure; hence, it plays a vital role in determination of banking industry performance. IFSA 2013 was established to promote financial stability and compliance to Shariah and further strengthen the regulation of Islamic financial institutions. This paper aims to examine whether IFSA 2013, bank’s risk-taking behavior and efficiency will enhance or impede performance of Islamic banks in Malaysia.

The Role Of Sharia Marketing In Indonesia: A Systematic Literature Review

Indonesia is a predominantly Muslim country, indicating a vast market potential for halal products and services. However, many businesses have yet to fully implement Sharia marketing. This article aims to examine the extent of the role of Sharia marketing in Indonesia. The research method used is a systematic literature review. The literature search was conducted using the Google Scholar database with the assistance of the Publish or Perish 8 application. The search for articles was conducted using the keywords 'Sharia Marketing', 'Sharia Marketing', and 'Islamic Marketing'. A systematic literature review of 27 articles spanning from 2018 to 2023 revealed that Islamic marketing plays an important role in Indonesia. Specifically, it assists in the development of Islamic financial institutions, helps in the development of micro, small, and medium enterprises, and improves the image of educational institutions in Indonesia. The research concludes that implementing Sharia marketing is important for business people.

The Role of Justice in Fin-Tech Performance: The analysis of Maqasid al-Syariah Index

The essence of justice is how well a person harmonizes with what is right. It is clear that justice is one of the principles of exalted ethics, especially in terms of Shariah compliance, since the Quran and Sunnah provide a solid basis for justice. Integrating Islamic Finance knowledge with Islamic Ethics is crucial for holistically assessing Shariah compliance in the world of Finance Technology (FIN-TECH). In terms of justice, numerous prior researchers have done most of the work. In this study, secondary data was gathered from Islamic financial institutions of specified sectors regarding the Maqasid al-Syariah Index on justice. The partial least squares structural equation modeling (PLS-SEM) method was the main statistical technique employed in this study. This study aimed to offer a precise mode in which justice may influence the performance Fin-Tech in Islamic Finance's success. The study of justice plays a significant role in guiding the direction of Fin-Tech in Islamic Finance applications.

The Implementation of Islamic Accounting Standards and Its Impact on the Performance of Qatar Islamic Banks: A Case Study of Qatar Islamic Bank

This research paper aims to assess the impact of applying Islamic accounting standards on the performance of Islamic banks. Several of these standards have been identified, and various indicators have been used to measure the performance of Qatar Islamic Bank as a case study. The importance of the research paper lies in guiding the financial and regulatory policies of Islamic banks towards the significance of adhering to the application of Islamic accounting standards and making sustainable managerial decisions to enhance the performance of these banks , The study's findings, analyzing the performance of Qatar Islamic Bank and identifying discrepancies in the application of standards by understanding their effects, serve as recommendations and a practical guide for other Islamic banks. This aids in recognizing the consequences of implementing these standards and addressing potential irregularities ,The study found that Qatar Islamic Bank relies on Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), modified by the Qatar Central Bank, in preparing its financial and accounting reports. Results indicated the bank's adherence to the standards of Mudarabah, Murabaha, and Ijarah ending with ownership. Analysis of financial statements showed a strong performance by the bank, accompanied by an increase in profitability. The study recommends diversification in other forms of Islamic financing, particularly in Mudarabah and Partnership.

The Impact of Corporate Governance and Stakeholder Engagement on Organizational Resilience in Kuwaiti Islamic Financial Institutions

The Impact of Corporate Governance and Stakeholder Engagement on Organizational Resilience in Kuwaiti Islamic Financial Institutions