Sharia Banking In Indonesia Research Articles

Market orientation and change capability on an Indonesian sharia banking performance: the moderating effect of leadership religiosity

Purpose Changes are required to improve the performance of Sharia banking in Indonesia. Using dynamic capability theory, this study aims to analyze organizational learning, change process and change context (OCC) in Bank Syariah Indonesia as influenced by market orientation (competitor and customer orientation) and moderated by religiosity and its impact on organizational performance (Maqashid Sharia) using a multilevel perspective. Design/methodology/approach To test the hypothesis, this research surveyed by distributing online questionnaires to managers and employees at 62 branch offices of Bank Syariah, the largest Sharia bank in Indonesia. Data processing involved multilevel structural equational modeling with Mplus analysis software. Findings Market orientation determines an organization’s ability to change significantly, which leads to organizational performance being significantly moderated by religiosity. In OCC, organizational learning influences change context through change processes, ultimately influencing organizational performance (Maqashid Sharia). Originality/value This research used a multilevel perspective by combining market orientation and OCC variables moderated by religiosity and its impact on Maqashid Sharia. This study was conducted at the largest Sharia bank in Indonesia, Bank Syariah Indonesia.

Pemberdayaan Ekonomi Perempuan Melalui Program Bank BTPN Syariah: Studi Literatur

The aim of this research is to find out whether financial inclusion has an effect on the stability of sharia banking in Indonesia using the Generalized Least Square (GLS) method. To measure the financial stability of Islamic banking, the inclusion variable contains MSMEs and Deposits, while the stability variable used is NPF. The research method used in this research is quantitative descriptive with the help of the Generalized Least Square (GLS) method which corrects problems in the classical assumption test, which is tested based on Eviews 12 with panel time series data. The research results show that the independent variable MSMEs has a significant effect on NPF. The independent variable Deposits has a significant effect on NPF. Reliability UI results using the F test for the MSME and Deposit variables together have an effect on NPF.

Determinant Factors of The Frequency Of Fraud Occurance: Study on Sharia Banking in Indonesia

This study investigates the determinant factors of the frequency of fraud on sharia banking in Indonesia. This study employed frequency of fraud occurance as dependent variable, quality of islamic corporate governance implemantation and bank complexity as independent variable. This research is a quantitative research with the type of data used, namely secondary data obtained from the official website of each bank and the OJK website. The data analysis used is multiple regression analysis using the E-Views 10 application. The results of this study show that partially the variable quality of the implementation of Islamic corporate governance has a positive effect on the frequency of fraud occurance and bank complexity does not have a significant positive effect on the frequency of fraud occurance.

Influence of Leadership and Digital Competence on Marketing Performance: Mediation by Innovation, Moderation by Competition

This study investigates the influence of strategic leadership, digital proficiency, technological innovation, and the competitive landscape on marketing success, highlighting the mediating function of technological innovation and the moderating effect of the competitive environment. We collected data from 305 employees at Indonesian Sharia Bank, Aceh Sharia Bank, and PT Pupuk Iskandar Muda. The SEM-PLS analysis reveals that strategic leadership and digital competency significantly improve technical innovation and marketing performance. Technological innovation substantially enhances marketing outcomes. While the competitive landscape improves marketing performance, its moderating influence is significant and detrimental. The study highlights the need for developing leadership and digital skills to drive innovation. By investing in these fields and understanding the competitive landscape, companies can strengthen their competitive edge and improve marketing results. Persist in implementing these discoveries

Pengaruh Penerapan Nilai-Nilai Islam, Citra Perusahaan Dan Kepuasan Nasabah Terhadap Loyalitas Nasabah Pada Bank Syariah Indonesia Di Kabupaten Bondowoso

This study seeks to evaluate the impact of applying Islamic values, the company's image, and customer satisfaction on customer loyalty in sharia banks located in Bondowoso Regency. The research is explanatory, focusing on the relationship or influence between independent and dependent variables. It employs a quantitative approach, sampling 100 Muslim customers of Indonesian sharia banks. Data collection was conducted via questionnaires distributed through Google Forms. The data were analyzed using multiple linear regression analysis, with the results derived from regression tests. The findings revealed that, firstly, the application of Islamic values does not independently affect customer loyalty. Secondly, the company's image has a partial impact on customer loyalty. Thirdly, customer satisfaction influences customer loyalty. Finally, the combined application of Islamic values, company image, and customer satisfaction has a significant effect on customer loyalty.

Does the Merger of the Indonesian Islamic Bank Matter for Its Social Mission of Economic Empowerment?

Research Originality: Economic empowerment through financing Micro Small Medium Enterprises (MSMEs) is one dimension of the social mission of sharia banking in Indonesia. The merger action of Bank of Sharia Indonesia (BSI) raises the question of whetherthe performance of economic empowerment has changed.Research Objectives: This research aims to analyse the differences in the BSI’s performance of economic empowerment during preand post-merger periods and analyse the issues and strategies for improving BSI's post-merger economic empowerment performance.Research Methods: It is a research using mixed method combining a quantitative explorative analysis approach using Wilcoxon Test, and a qualitative one using Analytic Network Process.Empirical Results: This research finds that BSI's economic empowerment performance has increased in terms of the quantity but decreased in terms of proportion in the post-merger period. ANP research demonstrates that risk management is a priority issue for the BSI post-merger period. The social mission of economic empowerment indicates several priority issues, namely, the relatively higher rate of profit margin than interest, the inadequate supervision model, the low rate of risk management literacy, and the relatively higher risk of profit loss sharing (PLS)-based financing. The strategy analysis indicates that policy intervention for BSI’s MSMEs financing is a top priority in improving the performance of its economic empowerment.Implications: This research recommends some recommendations for sharia banks’ MSMEs financing equivalent to the one of conventional banks. Economic digitalization as technological means to widen accessibility of economic empowerment and distribution segmentation focusing more on the halal sector.JEL Classification: A13, G21, G34How to Cite:Isman, A. F., & Hidayah, N. (2024). Does the Merger of the Indonesian Islamic Bank Matter for Its Social Mission of Economic Empowerment? Etikonomi, 23(2), 333 – 352. https://doi.org/10.15408/etk.v23i2.39810.

Unveiling the Nexus: Audit Quality and Financial Reporting in Sharia Banks—An Analysis of Non-Financial Matrix

This research investigates the impact of auditor experience and ethical perspectives on audit quality and financial reporting in Sharia banks in Indonesia. Utilizing a quantitative approach and employing Partial Least Squares Structural Equation Modeling (PLS-SEM), the study reveals a positive and significant relationship between auditor experience and both audit quality and the quality of financial reports. Ethical perspectives of auditors are also found to positively influence these outcomes. The findings highlight the importance of investing in auditor expertise and ethical considerations to ensure the integrity and reliability of financial information in Sharia banks. The study contributes valuable insights for practitioners and policymakers in the Islamic finance sector, emphasizing the crucial role of auditor experience and ethical perspectives in enhancing audit quality and financial reporting in Sharia banks.

The Effect of Company Size on Profitability with Capital Structure as a Moderating Variable in Islamic Banks

The study aims to analyze the impact of corporate size on profitability with capital structure as a moderation variable on sharia banks in Indonesia. The secondary data used came from the annual financial reports of Bank Syariah Indonesia (BSI) and Bank Muamalat Syariah (BMS) for the period 2020-2023. This research method uses simple linear regression analysis and Moderated Regression Analysis (MRA). The results show that the size of a company measured by the natural logarithm (LN) of the total assets has a significant influence on profitability measureed by the return on assets (ROA). These findings indicate that larger companies tend to have better financial performance and are able to attract more investment. The research has made important contributions in formulating strategies to improve financial performance and attract investment in Sharia banking companies.

Understanding Riba, Profit, And Fines in Sharia Banking

The debate and problem of riba, profit, and fines particular its practices in Sharia Banking among scholars, academics, the public, practitioners, business people, and religious organizations in Indonesia until now still reap a lot of opinions and controversy that affects the level of public trust in Sharia Banking, resulting in less growth in the market share of Sharia Banking compared to conventional banking even though Sharia Banking governance, performance, quality of compliance, image, and goodwill of Sharia Banking have adjusted to Islamic sharia. The research method used in this research is a literature study method that can be focused on the concept of usury, profit, and fines according to Sharia Banking. The results show that usury can be avoided through buying and selling transactions rather than lending and borrowing, but various understandings and information about usury do not necessarily advance the economy and Sharia Banking in Indonesia. The development of Sharia Banking faces various obstacles, including different understandings of usury among scholars, the public, business people, and a lack of encouragement from the government. Although the Sharia Banking system has been adapted to Islamic law, the market share of Sharia Banking in Indonesia is still relatively small, only 7.3% compared to conventional banking which reaches 92.7%. To increase the market share of Sharia Banking, it is necessary to increase public trust and awareness of Sharia Banking.

Analysis of Short Term Funding with Mudharabah Agreements in Bank Syariah Indonesia (Study on Indonesian Sharia Bank KC Jambi Gatot Subroto)

This research discusses the Analysis of Short-Term Funding with Mudharabah Agreements at Indonesian Sharia Banks (Study at the Jambi Gatot Subroto Branch Office Sharia Bank). The aim of this research is to describe the causes of the decline in the level of mudharabah financing in 2020 and the reasons why short-term funding in mudharbah contracts is less banking friendly due to the complexity and many requirements for MSMEs. This research is field research using descriptive qualitative methods. Data collection involves observation, interviews and documentation. Test the validity of this research using triangulation techniques. The subjects in this research were Bank Syariah Indonesia Jambi Gatot Subroto Branch Office. The results of this research show that there are two factors causing the decline in mudharabah financing in 2020, namely internal and external factors, internal factors include ineffective risk management, inefficient operational management, and declining service quality. External factors include the COVID-19 pandemic and the unreliability of customers in mudhrabah financing. The factors that cause short-term funding at Bank Syariah Indonesia Jambi Gatot Subroto Branch Office to be less banking friendly towards MSMEs are internal factors including fairly strict risk policies, complicated requirements, and a lack of understanding about MSMEs. External factors include a lack of support infrastructure such as providing business training with short-term funding.

Pengaruh Religiusitas dan Pengetahuan tentang Produk Perbankan Syariah terhadap Keputusan Masyarakat Kota Palembang Menabung di Bank Syariah Indonesia

This research aims to test and determine the influence of religiosity and knowledge about sharia banking products on the decision of the people of Palembang to save at Indonesian sharia banks. Research Method This thesis is a type of quantitative research. This research uses one independent variable and one dependent variable. The independent variables in this research are religiosity and product knowledge, while the dependent variable in this research is people's decision to save in Islamic banks. The data collection technique in this research was in the form of a questionnaire distributed to 100 respondents and the data was analyzed using the PLS (Partial Least Square) analysis technique. In analyzing the data, researchers used data analysis with several steps, namely validity test, reliability test, outer model test, inner model test and hypothesis test. The results of the hypothesis test carried out show the significance value of the influence of religiosity (X1) and knowledge about sharia banking products (X2) on the decision of the people of Palembang to save at Indonesian sharia banks (Y). The results of the research show that the religiosity variable obtained a t-statistic value of 7,540 > 1.96 with a p-value of 0.000 < less than the significance level of 0.05, so it can be explained that religiosity has a positive effect on the decision of the people of Palembang city to save at Indonesian sharia banks and the variable knowledge about products Islamic banking obtained a t-statistic value of 4,091 > 1.96 with a p-value of 0.000 < less than the significance level of 0.05, so it can be explained that knowledge about sharia banking products has a positive effect on the decision of the people of Palembang city to save at Indonesian sharia banks. The conclusion of this research is that religiosity and knowledge of sharia banking products influence the decision of the people of Palembang to save at Indonesian sharia banks.

Analysis of the Influence of Mobile Banking on the Profitability Level of Sharia Banks in Indonesia in 2019-2023

The aim of this research is to determine the effect of mobile banking on the level of Return On Assets (ROA) of Islamic banks in Indonesia in 2019-2023. The rise and fall of ROA is caused by unstable profits and total assets. This research uses quantitative research, and the data source uses secondary data in the form of a time series of 20 samples. Data analysis techniques use descriptive statistical test techniques, normality test, hypothesis test (t test), coefficient of determination test (R Square), and simple linear regression analysis. Data processing uses the SPSS Version 23 program. The research results show that the mobile banking variable has a partial effect on the profitability of Islamic banks in Indonesia in 2019-2023. This can be proven by the results of the t test analysis showing that the e-banking variable has t count gt; t table, thus e-banking has an effect on the profitability of Islamic banks in Indonesia in 2019-2023.Keywords: Mobile Banking, Profitability

The Influence of Directors’ Characteristics on the Social Performance of Sharia Banking in Indonesia

The primary objective of this study is to furnish empirical proof relating to the influence of characteristics of board directors on social performance (SP). The sample utilized in this study comprises Sharia banking companies in Indonesia that were listed by the Financial Services Authority (OJK) between 2008 and 2019, yielding a total of 134 observations. The sample selection utilized the purposive sampling technique combined with panel data analysis. The findings of this study demonstrate that the characteristics of board directors, as indicated by the number of board members and their educational backgrounds, exert a good influence on the social performance of Sharia banking in Indonesia. Conversely, the characteristics of board directors, specifically the presence of female directors, the educational level of board members, and their age do not exert any influence on the social performance of Sharia banking in Indonesia.

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

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.

Sustainability of Islamic Banking in the Midst of Global Economy: Case Study in Indonesia

Sharia banking is a bank whose activities refer to Islamic law and in its activities neither charges interest nor pays interest to customers. Sharia bank rewards received or paid to customers depend on the contracts and agreements entered into by the customer and the bank. Agreements (contracts) contained in sharia banking must comply with the terms and pillars of the contract as regulated in Islamic sharia. Over the last decade, the Islamic banking industry has developed very rapidly, not only the number of Sharia Commercial Banks (BUS) but also their assets have increased several times to hundreds of trillions. Seeing the current phenomenon of sharia banking is the author's interest in carrying out research. This research approach uses a descriptive approach, namely by obtaining data collection and data analysis aimed at creating systematic, current and accurate descriptions, depictions of the facts, as well as the relationships between the phenomena being investigated. The types and sources of data are quantitative data and secondary data taken from company reports. The results obtained are that Bank Syariah Indonesia is included in the very rapid development category. This is proven every year that he is able to achieve good goals and development. This shows that the public's response to trusting Indonesian Sharia banks is very good. And able to balance the challenges and opportunities in this current of globalization.

Comparative Analysis of Bank Performance Between Bank Syariah Indonesia (Private-Shariah) and Bank Central Asia (Private-Conventional) Period of 2021 and 2022

Bank Syariah Indonesia (BSI) is the largest sharia bank in Indonesia, while Bank Central Asia (BCA) is a conventional private bank with the largest capitalization in Indonesia. The fundamental problem at BSI is a cyber attack that has an impact on the IT system, while the fundamental problem at BCA bank is that the mobile banking system will be disrupted in 2022, so researchers will compare the bank's performance in 2021 (before) and 2022 (after). The general objective of this research is to analyze the comparison of bank performance after experiencing technological obstacles from both internal and external sources, while the specific objectives are to find out whether: (1) Any difference in the performance of Bank Syariah Indonesia (Private-Syariah) between 2021 and 2022, (2) Any difference in the performance of Bank Central Asia (Private-Conventional) in 2021 and 2022, (3) Any difference in the performance of Bank Syariah Indonesia (Private-Sharia) and Bank Central Asia (Private Conventional) between 2021 and 2022. The method used in this research is RGEC (Risk Profile, Good Corporate Governance, Earning, Capital). The analytical tool used is the Wilcoxon and Mann Whitney non-parametric t-difference test. The results obtained are: 1. There is no difference in Bank BSI's performance before and after the IT problem but not constant; 2. There is no difference in Bank BCA's performance before and after the IT problem but not constant; 3. There is no difference in the performance of Bank BSI before and BCA before IT problems occur but are not constant;4. There is no difference in the performance of Bank BSI after and BCA after IT problems occur but are not constant.

The Influence of Good Corporate Governance, Non Performing Financing, Capital Adequacy Ratio, Financing to Deposit Ratio on Financial Performance (Case Study of Sharia Banks in Indonesia for the period 2018 – 2022)

The Influence of Good Corporate Governance, Non Performing Financing, Capital Adequacy Ratio, Financing to Deposit Ratio on Financial Performance (Case Study of Sharia Banks in Indonesia for the period 2018 – 2022)

Potensi Perbankan Syariah di Indonesia Dalam Pola Dasar Manajemen dan Dana Pihak Ketiga

This article aims to examine the potential of sharia banking in Indonesia in terms of basic management patterns and third party funds. The method used in this research is the library research. The research results explain that sharia bank management is reflected in the annual financial report published by the OJK and contains the Third Party Funds of the sharia bank concerned. The potential for sharia banking in Indonesia shows a positive value, this is reflected in the total assets as of January 2023 owned by Sharia Commercial Banks and Sharia Business Units reaching IDR 765.36 trillion. This is also supported by an increase in Third Party Funds by 12% which is able to make BSI one of the largest sharia banks in Indonesia in the position of the sixth largest bank in Indonesia and the fourteenth position of the largest sharia bank in the world with Third Party Funds of 261. 49 Trillion

Stability and Performance of Conventional and Sharia Banking in Indonesia Before and After the Covid-19 Pandemic

This study examines the impact of the COVID-19 outbreak on the performance and stability of Indonesia's dual banking system. Our sample includes the top 20 banks by assets, both conventional and sharia, from 2018 Q1 to 2023 Q3. Data for conventional banks is obtained from Bloomberg, while data for Islamic banks is sourced from each bank's official website. We use ROA, ROE, and NIM as performance variables and Z-Score and NPL as stability variables. External factors such as GDP, Inflation, BI Rate, and Exchange Rate serve as independent variables, while bank-specific variables act as controls. Panel data regression is used to determine causal relationships between these factors and banking performance and stability. We also compare bank performance and stability before and after COVID-19 using the Mann-Whitney Test. Findings indicate that the pandemic significantly affected conventional banks' Z-Score, NPL, ROA, ROE, and NIM, while only NPL was significantly affected in sharia banks. The results highlight the significant impact of GDP, exchange rate, and BI Rate on banking variables, while inflation had no effect. The type of bank significantly influences performance but not stability.