Sharia Banking Performance Research Articles

Comparative Analysis of the Financial Performance of Regional Development Banks before and after Conversion to Islamic Banks

In Indonesia, the government encourages converting conventional regional development banks into sharia regional development banks. Such banks should become the driving force and the stimulator of a sharia ecosystem in the region, especially to support the development of regional economic potentials and to become a prosperous and peaceful country. This study aims to analyze the financial performance of regional development banks that have become sharia regional development banks to identify their ability to continue to provide economic growth in the region. Considering the results of previous studies, the authors conduct a comparative analysis of the financial performance of regional development banks that have converted to sharia banks using the following variables: return on assets (ROA), return on equity (ROE), loan-to-deposit ratio (LDR) / financing-to-deposit ratio (FDR), net interest margin (NIM) / net operating margin (NOM) and ratio of operating expenses to operating income (BOPO). The analysis aims to determine whether there is a significant difference in the financial performance between conventional and sharia regional development banks. The population in this study is the regional development bank, with a sample of 3 banks that have converted into sharia banks (Bank Aceh Shariah, Bank NTB Shariah, and Bank Riau Kepri Shariah). The study uses secondary bank data from quarterly financial reports on the banks’ websites. The independent sample t-test is used to test the performance of conventional and sharia banks. The study results indicate no significant differences in the financial performance of regional development banks as measured using the financial ratio indicators ROA, ROE, and LDR. However, there are significant differences in measurements using the NIM and BOPO ratio indicators. Although the financial performance of sharia banks is still lower than that of conventional banks, they are showing an upward trend.

Comparative Analysis of Financial Performance of Sharia Banks and Conventional Banks

This research objective is to determine the comparison of the economic performance of Sharia Banks and Conventional Banks. This study was conducted at sharia banking and conventional banking institutions indexed on the Indonesia Stock Exchange in 2018-2022. This type of studies is quantitative, the type of information used is secondary data, the statistical collection method used is documentation strategies and the information analysis method is quantitative descriptive methods. The population used is all banks in Indonesia. Meanwhile, figuring out the sample used the purposive sampling method. The records evaluation method was done using the descriptive evaluation testing degree and unbiased pattern t-test evaluation. The research results show that there may be no big distinction between the financial performance of Sharia Banks and Conventional Banks within the 2018-2022 duration.

Description of Capital Structure and Financial Performance of Sharia Bank in Indonesia

An optimal capital structure can provide maximum profits for the company. So, it requires company value and reduces the risk of bankruptcy. This paper aims to describe the capital structure and financial performance of Sharia Banks in Indonesia. The method of study and data analysis means this research is included in the descriptive research category, which identifies various variables. The method used is survey research for which secondary data is available. The population used in this research is Sharia Banks listed on the Indonesia Stock Exchange in 2022, publish financial reports, and are registered with the Financial Services Authority (OJK) during the 2013-2022 period. The results of the analysis of this research description show that capital market growth has a role in financial performance. This means that the development of the capital market creates wider funding opportunities for Sharia Banks in Indonesia. With more accessible access to the capital market through the issuance of shares or bonds on the capital market, Islamic banks can expand their funding sources to support operational activities and business growth. This can help increase liquidity and financial stability at Sharia Banks in Indonesia to optimize capital market potential. Sharia Banks need to pay attention to and utilize capital market potential effectively. In this case, they can increase collaboration with capital market institutions, carry out a public offering (IPO) program, or use other cap

PENGARUH KUALITAS PELAYANAN, CITRA MEREK, DAN KEPERCAYAAN TERHADAP LOYALITAS NABASAH BANK SYARIAH INDONESIA KOTA BENGKULU PASCA INSIDEN GANGGUAN LAYANAN

The performance of sharia banking in Bengkulu Province increased in the fourth quarter of 2022. One of them is Bank Syariah Indonesia. However, recently there was an incident of service disruption/temporary error in the Bank Syariah Indonesia (BSI) banking system. The state-owned sharia bank resulting from the merger of three state-owned banks experienced a service disruption incident in May 2023. This research will evaluate the impact of this incident on customer loyalty by considering service quality, brand image and trust. As a result of this incident, of course there are causes and effects that occur, for example customer loyalty. Therefore, this research aims to determine the influence of service quality, brand image and trust on the loyalty of customers who experience post-incident service disruption/temporary errors. This research uses descriptive quantitative research. The population in this research is Bank Syariah Indonesia customers inBengkulu City with a total sample of 150 customers taken using purposive sampling technique. The data source used is primary data obtained from questionnaire results, while secondary data is through websites and article publications and others. The research results show that the variables of service quality, brand image and trust have a positive and significant effect on customer loyalty. This means that this research can conclude that Bengkulu City Bank Syariah Indonesia (BSI) customers remain loyal after the temporary service disruption incident

Mengevaluasi Kinerja Perbankan Syariah Berdasarkan Keuangan di Bank BRI Syariah Melalui Rasio Keuangan dan Laporan Keuangan

In the context of the global meeting of the sharia financial industry, assessing the performance of sharia-based financial institutions is crucial for evaluating the stability and growth of the sector. This abstract focuses on analyzing the financial performance of BRI sharia bank, as one of the main players in the Indonesian sharia banking industry. By using financial report data for the 2018, 2019 and 2020 periods, this analysis explores the bank's financial performance through aspects such as profitability ratios, liquidity, solvency and bank activity and health. It is hoped that the results will provide in-depth insight into the contribution of BRI sharia banking to the growth and stability of the sharia banking financial sector. Through this analysis, it is hoped that a very strategic and relevant recommendation can be found to improve the performance of sharia banking, especially from this discussion which is based on BRI sharia banking.

Pengukuran Kinerja Keuangan Bank Syariah Indonesia Pasca Merger Menggunakan Pendekatan Islamicity Performance Index

This study aims to measure the performance of Indonesian Sharia Banks. Bank Syariah Indonesia is a bank resulting from the merger of three state-owned sharia commercial banks, namely Bank Rakyat Indonesia Syariah, Bank Negara Indonesia Syariah and Bank Syariah Mandiri. Previously, research on these 3 banks had been carried out before the merger occurred. This study seeks to see the performance of Indonesian Islamic Banks after the merger using the Islamicity Performance Index approach. The data used is Bank Syariah Indonesia annual report data for 2021. The results of this study show that two indicators have very satisfactory values, namely Islamic Investment vs. Non-Islamic Investment and Islamic Income vs. Non-Islamic Income, the Equitable Distribution Ratio indicator has a fairly good value, the Profit Sharing Ratio indicator has an unsatisfactory value, and the last two indicators, namely the Zakat Performance Ratio and the Director-Employee Welfare Ratio have very unsatisfactory values.

Analysis of the Performance of Rural Sharia Banks in Indonesia During the Covid-19 Pandemic

Covid-19 has a significant impact on the economy, including the Islamic financial industry in Indonesia. So, research on the performance of Islamic banks, including the performance of Islamic banks in Indonesia is very interesting to study. This study aims to determine the level of performance of BPRS in Indonesia during the Covid-19 pandemic in 2019-2021, based on OJK Circular Letter; SEOJK number 28/SEOJK.03/2019. This study uses qualitative descriptive methodology. The results of the study show that the average CAR ratio of BPRS in 2019-2021 is 23.46 percent, which indicates that BPRS is very healthy. The average NPF ratio of BPRS in 2019-2021 is 7.08 percent, which indicates that BPRS is healthy. And the average ROA ratio of BPRS in 2019-2021 is 2.11 percent, which indicates that BPRS is very healthy. Based on the above research results, the performance of BPRS in Indonesia during the Covid-19 pandemic was exceptional. This means that BPRS in Indonesia can continue to operate intact even under sluggish economic conditions. This shows that the performance of BPRS in Indonesia during the Covid-19 pandemic is in the healthy and stable category. This emphasizes that Islamic banks are resilient in the face of an economic crisis. Therefore, it is expected that bank management should always improve the performance of BPRS by paying attention to the capital aspect, asset quality aspect, income aspect, and liquidity aspect.

The Effect of Independent Cash Tim (ATM) Revenue On Sharia Banking Performance in Indonesia (2016-2020)

In 2020, around 50.3% of Indonesian people frequently use ATM services for transactions. The impact of ATM on banking performance has been the subject of various studies in the field of electronic banking with mixed results. Therefore, further investigation is needed to obtain empirical evidence regarding the effect of ATM income on bank performance. This study aims to examine the impact of ATM revenue on the performance of Islamic banking in Indonesia for the 2016-2020 period.A descriptive statistical method was used, utilizing secondary data from a time series consisting of 30 samples. The analysis used in this study is multiple regression which includes descriptive analysis test, normality test, linearity test, simple linear regression analysis, determinant coefficient test (R2), correlation coefficient test, and hypothesis testing (t-test).By using SPSS Software Version 25, the results showed a significance value (sig.) of 0.033 for the ATM variable (X). As Sig. 0.033 0.05 indicates profitability, the hypothesis is accepted. This means that there is an influence of ATM (X) on the performance of Islamic banking (Y). The coefficient of determination (R2) yields a value of 0.152 which means the influence of the ATM variable (X) is 15.2% on the performance of Islamic banking (Y). The remaining 84.8% is associated with variables not examined in this study.Keywords: Independent, Shariah Banking, Performance.

Analisis Kinerja Perbankan Syariah 2018-2022 Dengan Menggunakan Pendekatan Islamicity Performance Index

This study aims to analyze the financial performance of Indonesian Sharia Peranakans for the 2018-2022 period using the Islamicity Performance Index approach. CAR, BOPO, and NPF are the financial ratios which are the variables that will be examined, and the Profit Sharing Ratio is the financial ratio of the Islamicity Performance Index which will be analyzed for its performance. The formulation of this research is: How is the Performance of Indonesian Sharia Banking for the 2018-2022 period using the Islamicity Performance Index Approach? and whether there is an influence of CAR, BOPO, and NPF financial ratios on the Profit Sharing Ratio. This study uses a quantitative research method with secondary data in the form of financial reports obtained from the Sharia Banking Statistics of the Financial Services Authority (SPS OJK). The results of the research analysis that has been carried out, it can be seen that the financial ratios of CAR, BOPO, and NPF affect the Profit Sharing Ratio, where this profit sharing ratio is one of the main objectives of Indonesian Islamic Banking. The recommendation for this researcher is that it is better for Indonesian Islamic Banking to further increase the PSR ratio or profit sharing so that it is important to identify the extent to which a bank has achieved its goals, because the large acquisition of profit sharing for Islamic banks will later become an advantage for the bank itself.

A systematic literature review on the role of sharia governance in improving financial performance in sharia banking

PurposeThe purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal sharia compliance, and whether it can affect the performance of Islamic banking.Design/methodology/approachLiterature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.FindingsThe variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.Practical implicationsThe development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.Originality/valueFurther research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.

Pengukuran Kinerja Keuangan Bank Syariah Indonesia Pasca Merger Menggunakan Pendekatan Islamicity Performance Index

This study aims to measure the performance of Indonesian Sharia Banks. Bank Syariah Indonesia is a bank resulting from the merger of three state-owned sharia commercial banks, namely Bank Rakyat Indonesia Syariah, Bank Negara Indonesia Syariah and Bank Syariah Mandiri. Previously, research on these 3 banks had been carried out before the merger occurred. This study seeks to see the performance of Indonesian Islamic Banks after the merger using the Islamicity Performance Index approach. The data used is Bank Syariah Indonesia annual report data for 2021. The results of this study show that two indicators have very satisfactory values, namely Islamic Investment vs. Non-Islamic Investment and Islamic Income vs. Non-Islamic Income, the Equitable Distribution Ratio indicator has a fairly good value, the Profit Sharing Ratio indicator has an unsatisfactory value, and the last two indicators, namely the Zakat Performance Ratio and the Director-Employee Welfare Ratio have very unsatisfactory values.

The Influence of Sharia Good Corporate Governance on Financial Performance (ROA) Of Sharia Banking In Indonesia for the 2016-2020 Period

<p>This study aims to determine the partial effect of Good Corporate Governance with the following indicators; board of directors, board of commissioners, audit committee, and board of sharia supervisory, on financial performance using financial ratios, namely ROA (return on assets) during the 2016-2020 period. The population in this study is Islamic banking companies listed on the Indonesia Stock Exchange. The determination of the sample using purposive sampling included as many as 11 samples of companies in 5 years. The data analysis technique used in this research is multiple regression analysis using the panel data method. The results of the study indicate that partially the board of directors and the board of commissioners affect the financial performance, while the audit committee and sharia supervisory board do not affect the financial performance. Besides, the indicators of Good Corporate Governance (board of directors, board of commissioners, audit committee, board of sharia supervisory) simultaneously affect the financial performance with the value of R square indicating that variable X has a large contribution to variable Y.</p>

Transmission of Sharia Monetary Policy in Improving Sharia Banking Performance (Literature Study)

Indonesia's economic condition is currently experiencing a downturn, even though its current growth has increased by 5 percent from before. This will be the impact of Covid 19 that hit the country. This impact has had an impact on the decline of banking in the country, especially Islamic banking since 2020. When compared to the profits obtained since 2019. This study aims to see the performance of Islamic banking when viewed from the current monetary policy. This study uses a qualitative method. Documentation technique for analyzing documents related to Islamic Banking performance. The data used in the analysis includes Islamic Banking Accounting books, research articles, and so on. Based on the results of research conducted that the performance of Islamic banking in the country can survive and experience a very satisfying increase, it can be seen that the increase is happening every year. In semester I/2021, the profit earned was IDR 1.48 trillion, an increase of 34.29%. In 2022 the profit earned is IDR 3.21 trillion, an increase of 42%. From the results of these observations, the current monetary policy carried out by BSI can improve the financial performance of Islamic banking, even though our economic growth is currently experiencing an economic crisis.

Islamic Governance for Managing Banking Performance Assessment

This research developed the Islamic governance model for assessing sharia banking performance management. This research engaged with mixed methods by combining a positive or quantitative paradigm approach and an interpretive paradigm. The quantitative approach was carried out using Factor Analysis with Structural Equation Modeling. Data collection was executed using the observation technique, three in-depth interviews, documentation in building the sharia governance model, and questionnaires distributed to respondents to measure more dominant indicators in building the sharia governance model. The result of the analysis scores demonstrated that the moral and integrity variable exhibited the best goodness of fit model. It was followed by independence and responsible freedom; continuous improvements; honesty; positive thinking; balance, transparency and openness; belief and faith; accountability; professionalism; spirit; management; fulfilment of trust; intelligence; leadership; and justice. Keywords: Islamic governance, Islamic banking, performance

The Application of Maqasid Shariah on Banking Industry

This research aims to determine the development map and the role of maqashid sharia in the banking industry based on Scopus indexed journals. The data analyzed includes 933 indexed research publications. The export data is then processed and analyzed using the R Biblioshiny application program to identify a bibliometric map of the development of the role of sharia maqashid in the banking industry. The results show that the number of publications regarding the development of the role of maqashid sharia research in the banking industry has increased significantly. The results also show that the most common type of document is journal articles. International Journal of the Analytic Hierarchy Process, Intellectual Discourse and 2nd International Symposium on Technology Management and Emerging Technologies, ISTMET 2015 - Proceedings is the journal that occupies the top position. The most famous author is Amin H, and the most popular keyword topic is Islamic banking. Then, the research cluster is based on the topic of maqashid on banking, including Islamic banking, Evaluation of sharia banking performance, CSR in Islamic Banking and Finance, and Maqashid Syariah on Islamic banking.

The effect of islamic corporate social responsibility, corporate zakat, liquidity and company on financial performance of sharia banks

This study aims to examine and determine the effect of Islamic Corporate Social Responsibility (ICSR), corporate zakat and liquidity on the financial performance of Islamic banking. In addition, this study also aims to examine whether the variable size of the company moderates the relationship between each variable Islamic Corporate Social Responsibility (ICSR), corporate zakat and liquidity on the financial performance of Islamic banking. The sample used in this study is Islamic commercial banks listed at the OJK for the 2016-2020 period. The total sample is 9 Islamic commercial banks using purposive sampling. The data used are secondary data, the analytycal method used is panel data regression analysis with a Moderated Regression Analysis (MRA) test using data processing software Eviews 9. The results show that partially Islamic Corporate Social Responsibility (ICSR) has a negative and significant effect on financial performance as measured by ROA, corporate zakat has a negative and insignificant effect on financial performance as measured by ROA, liquidity as measured by the Current Ratio (CR) has an effect negative and insignificant to financial performance as measured by ROA. The results of research related to moderating variables show that company size is able to moderate the relationship between ICSR and financial performance, company size has no effect as a moderating variable between company zakat and financial performance and company size has no effect as a moderating variable between liquidity and performance.Keywords: Islamic Corporate Social Responsibility (ICSR), corporate zakat, liquidity, company size, financial performance.

Studi Literatur: Pelaksanaan Audit Syariah Pada Perbankan Syariah

This study analyzes several things about sharia auditing in sharia banking, including: the concept of supervision, sharia audit framework and governance of Islamic financial institutions; the role of sharia auditors in the Halal Assurance System in Sharia Banks; the role and competence of sharia auditors in supporting sharia banking performance; effectiveness of sharia audit in Indonesia and perspective according to Al-Quran and Hadith; sharia audit challenges; and Islamic bank audits. This research method uses qualitative methods, namely library research by selecting 5 (five) journals and 1 (one) book on sharia auditing. Audits in Islamic banks and conventional banks are very different, so that effective supervision is needed on Islamic banks, in this case a sharia auditor is needed. Sharia auditors have a broader scope, sharia auditors must review sharia compliance to ensure that all operational activities of sharia financial institutions are in accordance with sharia principles. A sharia auditor must also have competence that can be proven through a special certification exam for sharia auditors.

Analysis of Financial Performance of Conventional and Islamic BUMN Banks Before and During the Covid-19 Pandemic

Almost all economic sectors in the world have been affected by the Covid-19 pandemic, including the national banking industry in Indonesia. This study purpose was to examine the differences in the financial performance of State-Owned Conventional Banks and State-Owned Sharia Banks before and during the Covid-19 pandemic. The assessment of financial performance uses the CAR ratio, NPL ratio (for conventional banking) and NPF ratio (for Sharia banking). The database used is the 2019 and 2020 banking financial reports in the website of Financial Services Authority and the websites of each bank. Based on purposive sampling technique, the selected banks that meet the criteria are BRI bank, Mandiri bank, BNI bank, BTN bank, BRI Syariah bank, BNI Syariah bank, and Syariah Mandiri bank. The results of paired sample t test analysis showed that Ho was accepted, meaning that there was no difference in the performance of Capital Adequacy Ratio at SOCB before and during the Covid-19 Pandemic. The analysis of paired sample t test for SOSB, which is seen from the CAR, shows that there is no difference in the performance of CAR ratio of SOSB before and during the Covid-19 pandemic. This indicates that both SOCB and SOSB can maintain their capital adequacy ratio. Conversely, the performance of SOCB credit financing (NPL), using the paired sample t test, shows that there is a difference in the NPL performance of SOCB before and during the Covid-19 pandemic. Meanwhile, contrary to the NPL results of SOCB, the NPF of SOSB shows no difference, both before the Covid-19 pandemic and during the Covid-19 pandemic. This indicates that the performance of SOSB credit financing (NPF) is relatively safe compared to the performance of SOCB (NPL) credit financing.

Spin-off and efficiency in Islamic banks: DEA approach

Purpose – This study aims to analyze the efficiency level of Islamic banks from spin-off and non-spinoff results and the impact of the separation policy and other factors that affect the efficiency level of Islamic banks.Methodology – This study uses a quantitative approach through data envelopment analysis to measure the efficiency level of Islamic banks and the difference-in-difference approach to examine the impact of separation and other factors that affect the efficiency level of Islamic banks. Data is collected directly from each of the six Islamic banks' financial statements.Findings – The results showed no difference in the efficiency level between before and after the spin-off policy at the spin-off bank. Furthermore, it was found that the efficiency level of spin-off Islamic banks was significantly lower than that of non-spinoff Islamic banks. Implication – This result implies that the rules regarding spin-offs should be evaluated. The spin-off policy must be a corporate action and not a regulation imposed by the regulator. Merger or conversion between sharia business units can be an alternative to improve the performance of sharia banking in Indonesia. Originality – Research on the impact of Islamic bank spin-off policies is still limited. Only a few studies analyze the efficiency level of Islamic banks as a result of spin-offs by measuring data analysis. Therefore, this research will contribute to research that discusses the spin-off policy of Islamic banks, especially the impact on efficiency and the factors that affect the level of efficiency.

Analysis of The Merger of PT Bank Syariah Indonesia in Legal and Sharia Perspective

Legal analysis are necessary to the general considerations for merging in order to create a national banking industry structure that is strong and competitive and responsive to future challenges and special considerations for the merger of PT BNI Syariah and PT Bank Syariah Mandiri into PT Bank Syariah Indonesia, namely as an effort to create new and contributing national development workers. Towards the welfare of the wider community and shows the performance of sharia banking in Indonesia which is modern, universal, and provides goodness for all nature (Rahmatan Lil ‘Aalamiin). This issue has significance to be studied based on law and sharia because it can be a legal reference in the future. The research was conducted based on normative legal research and qualitative analysis. The result of this research shows that the considerations and the merger process are based on statutory regulations and have complied with sharia principles in the sense of fulfilling the values and objectives of Islamic banks, as well as being in line with the function of law as a means of development in order to achieve the benefit of the people and all the people of Indonesia.