Performance Of Islamic Banks Research Articles

Hubungan Makroekonomi terhadap Kinerja Keuangan pada Bank Konvensional dan Bank Syariah di Jawa Timur

Macroeconomic factors can be said to have a relationship with the financial performance of banks, both conventional banks and Islamic banks. The condition of the banking sector in East Java is very vulnerable to economic shocks that occur. So it requires a very independent and good liquidity management. The existing banking sector is still very dependent on the policies made by the central bank and the government. Then if there is a financial difficulty caused by unfavorable macroeconomic conditions, then the bank's financial performance may also be disrupted. Based on the analysis of data that has been explained that macroeconomic factors such as GRDP, inflation rate, unemployment rate, BI Rate and exchange rate, which have a very large relationship to the performance of conventional banks and Islamic banks in East Java is the BI rate. This shows that the banking sector in East Java must pay special attention to the dynamics of macroeconomic factors that occur. Whereas the financial performance between Islamic banks and conventional banks shows a difference. This is because the management of bank financial performance between Islamic banks and conventional banks has a different policy.

The Contribution of Islamic Banking to Economic Growth the Organization of Islamic Cooperation (OIC) Countries with the CAMELS Approach

The purpose of this study is to examine the contribution of Islamic banking to economic growth by analyzing the influence of Islamic banking performance on economic growth using the CAMELS method. A quantitative approach is employed in this research with secondary data in the form of panel data. Data sources are obtained from the publications of the Islamic Financial Services Board (IFSB) and the World Bank, using a sample comprising 6 countries that are members of the Organization of Islamic Cooperation (OIC) with a time range from 2013 to 2022. The results of the testing demonstrate that the variables CAR, ROA, NPF, and MAN do not significantly affect economic growth, while LIQ and SEN have a positive effect. However, simultaneously, CAR, MAN, NPF, ROA, LIQ, and SEN collectively influence economic growth.

ANALISIS KOMPARASI KINERJA KEUANGAN BANK UMUM SYARIAH DENGAN PENDEKATAN METODE CAMEL

This study aims to compare the performance levels of two Islamic commercial banks in Indonesia, namely Bank BCA Syariah and Bank Muamalat Indonesia for the period 2018 to 2022. This study uses a method that is often used to analyze the level of performance of Islamic banking, namely the CAMEL method. The indicators in this study consist of five financial ratios, namely CAR, NPF, NPM, ROA, and FDR. This research uses quantitative methods with comparative research types. Using secondary data from financial reports published on the official website of each bank. Kolmogorov-Smirnov test is used for data normality testing and hypothesis testing using independent t-test and Mann-Whitney test. The results showed statistically significant differences in the values of CAR, NPF, ROA, and FDR in Islamic banking between Bank BCA Syariah and Bank Muamalat Indonesia, then there was no significant difference in the NPM ratio between the two banks. Based on the results described, Bank BCA Syariah has a superior average value in terms of CAR, NPF, NPM and ROA ratios compared to Bank Muamalat Indonesia. Meanwhile, the performance of Bank Muamalat Indonesia's FDR proportion is better than Bank BCA Syariah in recent years. Therefore, it can be said that Bank BCA Syariah and Bank Muamalat Indonesia have different performance.Keywords: Financial Performance; Islamic Banks; Camels Method

Impact of Corporate Social Responsibility and Profitability in Financial Performance Moderated by Amanah Concept

Purpose – This study aims to fill a gap in the literature by examining the impact of CSR, measured through Zakat, and the effect of profitability on the financial performance of companies in Saudi Arabia, as well as the role of the concept of Amanah as a moderating variable. Methodology/approach – This study employs a quantitative method using secondary data from financial reports of banks listed on Tadawul from 2019 to 2023. The sample was selected based on the consistency of reports and the absence of losses in the last three years. Data analysis was conducted through multiple linear regression with panel data using Eviews version 11. Findings – The research findings indicate that CSR and the concept of Amanah have a significant impact on the financial performance of Islamic banks, whereas profitability does not have a significant effect. The concept of Amanah also acts as a moderating variable that strengthens the influence of CSR and profitability on financial performance. Novelty/value – This study makes a significant contribution by demonstrating that the concept of Amanah plays a key role in enhancing the financial performance of Islamic banks, alongside CSR. The findings support the Sharia Enterprise theory and introduce a new approach to measuring the performance of Islamic banks by placing greater emphasis on the concept of Amanah.

Islamic Bank Performance and Macroeconomic Variables During Economic Turbulence

The study aims to analyze the effect of internal and external bank factors on the financial performance of Islamic banks during the Covid-19 pandemic. The external factors or macroeconomic factors consist of BI Rate and Inflation. The internal bank factors used are BOPO (Operating Expenses for Operating Income), CAR (Capital Adequacy Ratio), FDR (Financing to Deposit Ratio), NPF (Non-Performing Financing), and ROA (Return on Assets). A quantitative analysis is applied to assess the research construct by using a panel regression approach. The data used is sourced from Bank Indonesia and the Financial Services Authority for the observation period from 2019 - 2021. The findings show that external factors do not affect ROA in the long run and short run. Meanwhile, the internal factors BOPO and CAR significantly influence ROA, and NPF is having a significant impact only in the long run. The implications of this study show that Islamic banks need to strengthen operational efficiency, maintain capital adequacy, and implement good credit risk management in order to increase profitability sustainably, regardless of external fluctuations such as BI interest rates and inflation.

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

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

Kinerja Maqashid Syariah dan Financial Sustainability Bank Umum Syariah di Indonesia

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

The Impact of Organizational Climate on the Performance of Islamic Banks in Yemen: A Field Study

The Impact of Organizational Climate on the Performance of Islamic Banks in Yemen: A Field Study

M Score Performance Measure for Islamic Banks in Malaysia and Indonesia

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

Systematic Literature Review: Determinant of Islamic Bank Performance (IBP)

Systematic Literature Review: Determinant of Islamic Bank Performance (IBP)

Peran Perbankan Syariah dalam Mengimplementasikan Keuangan

This study aimed to analyze the role of islamic banks in implementing financial inclusion in Indonesia. Financial inclusion is a process to provide formal financial access for the poor and low income people (unbankable people). This study was designed which approached qualitatively and quantitatively (mixed research). The qualitative data analyzed by using Straruss and Corbin’s theory consisted three major steps: open coding, axial coding, and selective coding. Quantitative analyzed by using comparative analysis of financial statements and financial ratio analysis such as CAR, ROA, ROE, NPF, and FDR period of 2010-2014. This study proved that Islamic banking had great potential in implementing financial inclusion, it was indicated by a significant increase in funding and financing since 2010-2014 and results of financial ratio analysis also shows the performance of Islamic banking and financial condition is good.

Analisis Dinamika dan Keseimbangan Pembiayaan Bank Umum Syariah Dengan Pendekatan Error Correction Model

The study aims to analyze the dynamics and balance of financing of Islamic Commercial Banks in Indonesia during the period 2015-2023 with a focus on changes in monetary policy, real effective exchange rate, price level, profitability, and capital adequacy. The research method uses a quantitative approach with analysis techniques using the error-correction model (ECM) approach. The results showed that monetary policy, real effective exchange rate, profitability, and capital adequacy ratio have a significant influence on the financing of Islamic Commercial Banks in Indonesia in the long run. In contrast, the price level does not show a significant influence on financing in the long run. These results explain that macroeconomic factors and banking performance are crucial in determining the balance of financing in the Islamic banking sector in Indonesia. The findings suggest that changes in monetary policy, which often reflect overall economic conditions, can affect financing decisions in Islamic banks. In addition, fluctuating real exchange rates can affect the price competitiveness and financial position of banks. Profitability, as an indicator of financial health, and the capital adequacy ratio, as an indicator of a bank's ability to bear risk, were also found to have a significant influence, suggesting that the internal performance of Islamic banks is decisive in the financing provided.

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

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

The Influence Of Corporate Governance on the Performance of Islamic Banks in Indonesia

This research was conducted with the aim of testing the influence of Corporate Governance on the performance of Sharia Banks. The measurement used to measure this independent variable is to analyze the total size of the board, audit committee, non-executive directors, sharia board and risk management committee. Quantitative data is used as research data by looking at the annual report of the company concerned. Sharia Bank is used as the object of this research. The sample was determined using a purposive sampling method and resulted in 13 Sharia Commercial Bank companies. The annual report for the 2018-2022 period is used as processed data obtained from the official website of the company concerned. This research analysis uses panel regression of company data. This research uses five independent variables consisting of Board Size, Non-Executive Directors, Audit Committee, Shariah Board, and Risk Management Committee. The dependent variable in this research is sharia bank performance which is measured using ROA (Return On Assets) and ROE (Return On Equity). This research uses panel regression. The F test results in this study were 0.014378 for ROA measurements and 0.0000 for ROE measurements. The adjusted R square test results are 0.282995 for ROA and 0.729184 for ROE. The conclusion of this research is that the board size variable obtained insignificant results. The non-executive director variable for ROA measurement shows significant results, while the ROE measurement is not significant. The audit committee variable obtained insignificant results. The sharia board variable produces insignificant results and the risk management committee variable produces insignificant results. The author was limited in completing this research because the researcher only used the Islamic banking sector, so in selecting the sample the data obtained was relatively small. Recommendations from researchers that can be given to other prospective researchers are to be more detailed in assessing the performance of Islamic banks. You can expand the independent and dependent variables

Risk Management Practices and the Performance of Indonesian and Malaysian Islamic Banks: Does Digitalization Mediate This Nexus?

ABSTRACTDespite being exceptionally regulated financial institutions, risk management practices (RMPs) of Islamic banking (IBs) have always remained under the limelight due to their impact on financial performance (FP) and the influence of digitalization (DT). This study aims to investigate the impact of RMPs on FP through the mediating effect of DT. To analyze the linkage between these constructs, we created an index for RMPs, five unique proxies (mobile [MB_DEA], big data [BD_DEA], Internet of Things [IoT], cloud computing [CC_DEA], and social media [SM_DEA]) of DT, and Tobin's Q as a proxy of FP and operationalized the theory of contingency. The data between 2009 and 2020 was collected from Indonesian and Malaysian IBs and was analyzed using the two‐step generalized method of moments (GMMs) technique. The empirical findings represent that RMPs and DT have a significant positive effect on FP. Simultaneously, RMPs have a significant positive effect on two proxies of DT (MB_DEA and SM_DEA), and an insignificant positive effect on the remaining three proxies of DT (BD_DEA, IoT_DEA, and CC_DEA). Simultaneously, DT as a mediator plays a significant role between RMPs and FP. This study contributes to systematizing the RMPs of IBs by integrating digitalization which eventually will increase the financial portfolios of IBs.

Social Responsibility Orientation of Banking in Indonesia (Case Study on Islamic Banking in North Sumatra)

This research investigates how Corporate Social Responsibility (CSR) orientations, attitudes, competencies, government regulations, societal pressures, environmental organizational pressures, and media pressures influence the social performance of Islamic and conventional banks in North Sumatra, in compliance with the Financial Services Authority Regulation No. 51 of 2017 on green banking and sustainable development. The study sampled 106 respondents from 5 Islamic banks, using Structural Equation Modelling (SEM) with Smart PLS 4.0. The findings reveal that CSR orientations grounded in philanthropic, legal, ethical/social, and economic responsibilities significantly impact the social performance. Attitudes not affected on Islamic banks, while competencies impact Islamic. Societal pressures influence Islamic banks, whereas government regulations not affected on Islamic banks. Environmental/social organizational pressures impact not affected on Islamic banks, and media pressures also.

Impact of Intellectual Capital and Islamic Corporate Governance on Financial Performance of Indonesian Islamic Commercial Banks

The aim this study is to investigate the relationship between intellectual capital, Islamic commercial banks' financial performance, and Islamic corporate governance in Indonesia from 2017 to 2019. The methodology used in the study is quantitative. The people are all Muslims. Commercial banks that have Financial Services Authority registrations (OJK) over the three-year period (2017-2019). The sample is determined using a saturated sampling technique, resulting in 14 Islamic Commercial Banks and forty-two observations in total. The analytical approach is panel data regression analysis and data processing with Eviews 9. The study's findings demonstrate that intellectual capital has a significant impact on return on assets. In contrast, the Sharia Supervisory Board has little effect on Return on Assets. However, the Commissioners' Board and the Directors Board both significantly influence Return on Assets.

Shariah governance and Islamic banks: a systematic literature review

Purpose The purpose of this paper is to provide a systematic literature review on Shariah governance and Islamic banks. Design/methodology/approach The literature was searched from Scopus and Web of Science using various queries related to Shariah governance and Islamic banks. Through a screening process, 93 articles were considered fit for the systematic literature review. Findings The paper provides a systematic review based on different themes, including measurement of Shariah governance in Islamic banks, disclosure of Shariah governance and its determinants, the impact of Shariah governance on performance, risk management and other outcomes of Islamic banks. Finally, issues and challenges of Shariah governance in Islamic banks are discussed, followed by conclusions and recommendations related to future research. Originality/value This study is the first of its kind, to the authors’ knowledge, to provide a comprehensive systematic literature on Shariah governance and Islamic banks by exploring different themes and highlighting multiple future avenues of research.

Islamic banking and capital market performance in Indonesia, the lesson from pandemic Covid-19

The Covid-19 pandemic caused panic on global financial markets and had an impact on a global recession. This research will examine the impact of Pandemic Covid-19 on the Performance of the Islamic Banking and Stock Market in Indonesia. The purpose of this study is to determine the different impacts of Islamic banking and the Islamic stock market in the long and short-term using the Autoregressive Distributed Lag (ARDL) method and using monthly data from January 2017 to December 2022. The results show that new cases of the Covid-19 pandemic actually have a positive impact on Islamic banking performance but not for stock market. Our findings have counter-estimations from several previous studies, therefore it may provide a new hypothesis of the performance of Islamic banking in Indonesia.

Empirical study: social and financial performance of Islamic rural bank in Indonesia

Islamic Rural Bank (BPRS) in Indonesia have developed rapidly and reached the lower levels of society. As an islamic institution, BPRS has both financial and social purpose. The effect of social performance on financial performance in BPRS has yet to be widely studied, especially using quantitative data over a long period. This research aims to determine the influence of social performance on financial performance at BPRS in Indonesia. This research uses internal factors (bank characteristics) and external factors (macroeconomic variables) as control variables. Generalized Method of Moments (GMM) parameter was used with Stata software to estimate selected BPRS panel data in the 2012-2021. The result shows that zakat has a positive and significant effect on financial performance at a significance level 0.01. The managerial implication of this study is to encourage Islamic rural banks to pay and report zakat.