To see the other types of publications on this topic, follow the link: Asian Islamic Banks.
Journal articles on the topic 'Asian Islamic Banks'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Asian Islamic Banks.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Permatasari, Annisa, and Noven Suprayogi. "Disclosure of Corporate Social Responsibility in Sharia Banks in Southeast Asian Countries Based on AAOIFI Standards." MALIA: Journal of Islamic Banking and Finance 7, no. 1 (2023): 69. http://dx.doi.org/10.21043/malia.v7i1.15849.
Full textAbstract:
<p><em>This study aims to determine the effect of profitability, bank size, and age of Islamic banks on the disclosure of Corporate Social Responsibility on Islamic banks in Southeast Asian countries based on AAOIFI standards partially and simultaneously. The population used in this study are Islamic banks in Southeast Asian countries, including Brunei Darussalam, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Myanmar, and the Philippines. The sampling technique was purposive sampling to obtain 18 sample Islamic banks with a total of 126 data. This study uses a quantitative method with panel data regression analysis with Eviews 10. The results of this study partially show that the profitability and size of Islamic banks are not significant in the disclosure of Corporate Social Responsibility. In contrast, the age of the bank has a positive and significant effect on corporate social responsibility disclosure. Simultaneously, profitability, bank size, and bank age significantly positively affect Islamic banks' Corporate Social Responsibility disclosure in Southeast Asian countries for 2014-2020. The implication of the findings of this study confirm that social activities in Islamic banks are activities that must be carried out and disclosed by Islamic banks so that the bank's financial performance does not influence the implementation and disclosure of social activities in Islamic banks</em><em></em></p>
2
Alkindi, Muhammad, and Wiwik Utami. "A comparative study of Islamic conformity, profitability, and green performance in Southeast Asian Islamic banks." Banks and Bank Systems 20, no. 1 (2025): 174–90. https://doi.org/10.21511/bbs.20(1).2025.15.
Full textAbstract:
Southeast Asian countries, as members of the Association of Southeast Asian Nations (ASEAN), hold the second-largest Sharia financial assets globally. This study aims to assess the comparative performance of Islamic banks across ASEAN, examine the relationship between Islamic conformity, profitability, and green banking practices, and compare performance indicators between Malaysian and Indonesian Islamic banks. The sample includes Islamic banks from Indonesia, Malaysia, Brunei Darussalam, Thailand, and the Philippines. The findings reveal consistent adherence to Sharia principles across all banks, demonstrating strong Islamic conformity. However, financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) show significant variability, reflecting differences in operational efficiency and profitability. Green banking practices positively correlate with profitability, particularly ROA and NPM, emphasizing the role of Environmental, Social, and Governance (ESG) initiatives in enhancing operational efficiency and customer loyalty. The comparative analysis highlights that while both Malaysian and Indonesian Islamic banks exhibit consistent Islamic conformity, Malaysian banks outperform their Indonesian counterparts in green banking practices and profitability. This advantage is attributed to Malaysia’s advanced regulatory environment, which promotes sustainable finance, whereas Indonesian banks face greater profitability variability, necessitating improved governance and operational strategies. These findings offer valuable insights for policymakers and stakeholders, showcasing how Islamic financial principles can integrate with sustainability practices to achieve profitability and environmental responsibility in Islamic banking. Acknowledgment(s)The authors extend their gratitude to the Ministry of Higher Education, Science and Technology of the Republic of Indonesia for funding this research and to the Research and Community Service Centre of Universitas Mercu Buana for their valuable support.
3
Ulfat, Abbas, Imran Farooq Muhammad, Noor Amna, Murtaza Sadia, and Waqas Ashraf Muhammad. "The Impact of Net Stable Funding Ratio (NSFR) Regulations of Basel-III on Financial Profitability and Stability: A Case of Asian Islamic Banks." Indian Journal of Economics and Business 21, no. 1 (2022): 9–25. https://doi.org/10.5281/zenodo.5869802.
Full textAbstract:
This paper examines the effectiveness of Basel III framework by linking the Net Stable Funding Ratio (NSFR) with profitability and stability of Asian Islamic Banks. The formula for measuring NSFR was introduced in the Basel III accord. Data from 89 Islamic banks for the period of (2011-17), from 20 countries in the (southern, eastern and western) Asian regions where Islamic Banking System is applicable was collected. Two-step Generalized Method of Moments (GMM) model estimator is used in order to handle simultaneity bias and endogeniety problem. The result showed that the Islamic banks of Asian regions are stable. All the results validate Basel III NSFR as a significant safeguard regulatory step for stability and insignificant for profitability of the banks. It is proposed that Banking supervision committee must consider the different nature of Islamic banks and formulate a different criteria which will not affect their profitability as Islamic banks has one more layer of supervision in the form of Shariah Advisory board other than Central bank of any country.
4
Sufian, Fadzlan, and Fakarudin Kamarudin. "Determinants of revenue efficiency of Islamic banks." International Journal of Islamic and Middle Eastern Finance and Management 8, no. 1 (2015): 36–63. http://dx.doi.org/10.1108/imefm-12-2012-0114.
Full textAbstract:
Purpose – The purpose of this paper is to examine the revenue efficiency of Islamic banks in the Southeast Asian countries. Specifically, the empirical analysis comprises Islamic banks operating in Malaysia, Indonesia and Brunei. This paper also seeks to investigate the potential internal (bank-specific) and external (macroeconomic and industry-specific) factors which influence the revenue efficiency of Islamic banks operating in Southeast Asian countries. Design/methodology/approach – This paper used a whole gamut of domestic and foreign Islamic banks operating in Southeast Asian countries, namely, Malaysia, Indonesia and Brunei during the period of 2006-2011. The level of revenue efficiency is computed by using the data envelopment analysis (DEA) method. Following the procedure set in Banker and Natarajan (2008) and Gujarati (2002), this paper use a panel regression analysis framework based on the ordinary least square and generalized least square methods to examine the potential determinants of revenue efficiency of the Islamic banks in the sample. In addition, this paper also use a battery of parametric (t-test) and non-parametric (Mann–Whitney [Wilcoxon] and Kruskall–Wallis) tests to examine the difference in the revenue efficiency of the domestic and foreign Islamic banks. Findings – The results indicate that the level of revenue efficiency on the domestic Islamic banks is higher compared to that of their foreign Islamic bank counterparts. The empirical findings seem to suggest that revenue efficiency has greater influence on the profit efficiency levels. It was found that the bank size, asset quality, capitalization, liquidity and management quality significantly influence the revenue efficiency of domestic Islamic banks operating in Malaysia, Indonesia and Brunei during the period under study. Research limitations/implications – Due to its limitations, the present study may be extended in variety of ways. First, if information on input prices is available, further analysis could be performed to investigate the cost, technical and allocative efficiency. Second, interested researchers may apply the Malmquist Productivity Index method to examine the sources of total factor productivity changes of Islamic banks operating in the ASEAN countries. Third, to obtain more robust results, empirical findings from the present study could be compared to the results derived from improved statistical methods, i.e. Bootstrap DEA. Practical implications – The empirical findings of this paper clearly call for regulators and decision-makers to review the revenue efficiency of banks operating in Malaysia, Indonesia and Brunei Islamic banking sectors. The results could also provide better information and guidance to the managers of Islamic banks, as they need to have a clear understanding on the impact of revenue efficiency on the performance of their banks. The empirical findings of this paper may also have implications for investors whose main focus is to gain higher profit from their investments. Originality/value – The paper is the first to provide empirical evidence on the determinants of revenue, cost and profit efficiency of Islamic banks operating in Southeast Asian countries.
5
Malim, Nurhafiza Abdul Kader, Tajul Ariffin Masron, and Anwar Allah Pitchay. "Determinants Of Islamic Banks' Margins In Asian Countries." Journal of Islamic Finance 6 (December 31, 2017): 046–53. https://doi.org/10.31436/jif.v6i0.255.
Full textAbstract:
This paper examines the determinants of margins in Islamic banks for the period 2005â€2013. Specifically, we apply pooled, static and dynamic panel regressions on 76 Islamic banks in Asian countries. The results suggest the main factors that influence the margins of Islamic banks are numerous including bank size, default risk, overhead cost, capitalization, market concentration, GDP growth and inflation. It is evident that enhancing macroeconomic policies, risk management capabilities and operational efficiency could help in lowering the margins.
6
Samad, Abdus. "Analysis of Comparative Efficiencies of Islamic Banks Across Nine South and Southeast Asian Countries." International Journal of Finance & Banking Studies (2147-4486) 10, no. 1 (2021): 71–85. http://dx.doi.org/10.20525/ijfbs.v10i1.1072.
Full textAbstract:
The purpose of this paper is two folds: (i) obtain the overall technical efficiencies (TE), pure technical efficiencies (PTE), and scale efficiencies of the Islamic bank of the nine South and Southeast Asian (SSEA) countries during 2011-2016. (ii) compare them among the Islamic banks of the SSEA. The paper applied the Bootstrap Data Envelope Analysis (DEA) for obtaining three efficiencies in the production of loan and earning assets and found that the average TE, PTE, and SE of the Islamic banks in the region were 77.3 percent, 81.2 percent, and 95.3 percent respectively. The comparison of PTE efficiencies across the Islamic banks found: (i) the average TE of the Islamic banks of Malaysia was 81.9 percent and was higher than the average of other countries in the region; (ii) the average managerial efficiency (PTE) of the Islamic banks of Malaysia, excluding Brunei, Singapore, and Thailand, was 87.0 percent and was higher than the average of other countries in the region; (iii) among countries of the South and Southeast Asia, excluding Singapore and Maldives, the Islamic banks of Pakistan were more scale efficient than other countries in the region. The average scale efficiency of Pakistan’s Islamic banks was 96.8 percent. The underlying reason for the Islamic banks of Malaysia and Pakistan most efficient in the region is because they were the forerunners. They were the first countries to introduce Islamic banks. Secondly, the banks of counties survived through competition with conventional banks operating side by side in the Islamic banks. The policy prescription suggests that bank regulators allow the opening of more Islamic banks to compete with conventional banks for improving PTE efficiency.
7
Viverita, Viverita, Dwi Nastiti Danarsari, Yosman Bustaman, and Fadli Septianto. "The effect of banks’ cost efficiency and competition on liquidity creation." Banks and Bank Systems 19, no. 1 (2024): 48–57. http://dx.doi.org/10.21511/bbs.19(1).2024.05.
Full textAbstract:
This study examines the role of a bank’s cost efficiency and competition when creating liquidity. It also investigates the different abilities to create liquidity between conventional banks and Islamic banks. This study employs data from annual reports for 117 banks, including 103 conventional banks and 14 Islamic banks from the Association of Southeast Asian Nations 4 (ASEAN-4). Using the dynamic panel regression with the GMM system, this study finds that cost-efficient banks have a higher ability to create liquidity, while high banking competition deteriorates that ability. However, these effects decrease as banks manage their costs more efficiently. The findings imply that banks’ ability to create liquidity is impacted by their market power to win the competition. Additionally, this study found that Islamic banks create more liquidity than conventional banks. This phenomenon indicates that by being more focused on activities using on-balance sheet items, Islamic banks are spared from risky off-balance sheet commitments. Furthermore, efficient banks are more able to generate liquidity in competitive markets.
8
Kamarudin, Fakarudin, Chiun Zack Hue, Fadzlan Sufian, and Nazratul Aina Mohamad Anwar. "Does productivity of Islamic banks endure progress or regress?" Humanomics 33, no. 1 (2017): 84–118. http://dx.doi.org/10.1108/h-08-2016-0059.
Full textAbstract:
Purpose This paper aims to explore the level of productivity of Islamic banks specifically in selected Southeast Asian Countries from the period 2006 to 2014. Besides, this study also investigates the potential determinants of bank-specific characteristics and macroeconomic conditions that may influence the productivity of banking sector. Design/methodology/approach The present study gathers data on the 29 Islamic banks from Southeast Asian countries, namely, Brunei, Indonesia and Malaysia. The productivity level of the Islamic banks is evaluated using the data envelopment analysis-based Malmquist productivity index method. The authors then used a panel regression analysis framework based on the ordinary least square to identify potential determinants. Findings The domestic and foreign Islamic banks have exhibited progress in total factor productivity change solely attributed to the increase in efficiency change (EFFCH) which were mainly managerial rather than scale related. Foreign-owned banks have been slightly more productive compared to their domestic-owned bank counterparts, attributed to a higher EFFCH but insignificantly different. Furthermore, capitalisation, liquidity and world financial crisis determinants have significantly influenced productivity level of Islamic banks. Originality/value The study on the productivity of Islamic banking is still in its formative stage. To date, very limited study has been conducted to examine the productivity level in Southeast Asian, which is a strong regional hub for Islamic banking. This study intends to fill the gaps with a specific focus on the productivity level, specifically narrowing down to Southeast Asian countries in the domestic and foreign Islamic banking sector.
9
Moldakmatov, Asylbek, Zura Chikeyeva, and Asel Kurmanalieva. "Comparative analysis of Islamic banking regulation in Kyrgyzstan and Central Asian countries." Social Legal Studios 7, no. 1 (2024): 74–86. http://dx.doi.org/10.32518/sals1.2024.74.
Full textAbstract:
The Islamic banking regulation plays a key role in ensuring the development of this type of financial activity, especially for countries with a predominantly Muslim population, such as the Kyrgyz Republic and other Central Asian countries, in particular the Republic of Kazakhstan and the Republic of Tajikistan. Therefore, the study aims to analyse and compare the peculiarities of the legal framework that regulates the activities of Islamic banks. Legal analysis, statistical analysis, grouping, generalisation, comparison, and abstract and logical thinking methods were used in the article. The information basis for this study included the current laws and regulations of Kyrgyzstan, Kazakhstan, and Tajikistan in the field of Islamic banking regulation. The study analyses the laws that establish the principles of operating and regulation of Islamic banks, as well as the regulatory documents of the Central banks of the Kyrgyz Republic, Kazakhstan, and Tajikistan. The study identifies and analyses the key requirements established for the establishment of Islamic banks, Shariah boards operating within such banks, as well as prudential standards for financial institutions operating on the principles of Islamic finance. A comparative analysis of regulatory and legal documents has made it possible to formulate both common and different approaches used to ensure and regulate the activities of Islamic banks. It is established that the key difference between the legal regulation of Islamic banks in Kazakhstan, as compared to Kyrgyzstan and Tajikistan, is the lack of possibility for banking structures to combine traditional banking activities with activities based on the principles of Islamic Finance. The study results can be used by the authorities that form the legislative framework and regulate the activities of Islamic banks, and entities operating in the banking system, as well as by the scientific community interested in ensuring the Islamic banking regulation in Kyrgyzstan and other Central Asian countries
10
Chen, Naiwei. "C ORRUPTION D IVERSIFICATION AND ASSET QUALITY OF ISL AMIC AND CONVENTIONAL B ANKS : A DYNAMIC PANEL DA TA APPROACH." International Journal of Islamic Business 4, no. 2 (2019): 15–32. http://dx.doi.org/10.32890/ijib2022.4.2.2.
Full textAbstract:
Minimal research to date has examined whether and how corruption and diversification influence the asset quality of Islamic banks from the agency perspective. The study aims to fill this research gap using a sample of 155 banks (28 Islamic banks and 127 conventional banks) in three Asian countries (Indonesia, Malaysia, and Pakistan) from 2006 to 2012. Estimation of the dynamic panel data model reveals that corruption negatively affects the asset quality of Islamic banks whereas conventional banks see no such effect. Corruption also proves to strengthen (weaken) any negative (positive) effect of diversification on the asset quality of Islamic banks, in particular. Furthermore, the modifying effect of corruption is particularly found in more corrupt countries (Indonesia and Pakistan) as opposed to a less corrupt country (Malaysia). Overall, results suggest that banks should engage in diversification moderately because diversification’s negative effect can overpower its positive effect. In addition, Islamic banks and particularly small ones should watch out for the negative effect of corruption because these banks’ asset quality is more influenced by corruption than other banks. Furthermore, it is crucial for policymakers to effectively control corruption to maximize the asset quality of banks for better financial stability of the banking sector. This is especially true for Islamic banks because they are more likely to incur higher agency costs as opposed to conventional banks.
11
Chen, Naiwei. "C ORRUPTION D IVERSIFICATION AND ASSET QUALITY OF ISL AMIC AND CONVENTIONAL B ANKS : A DYNAMIC PANEL DA TA APPROACH." International Journal of Islamic Business 4, no. 2 (2019): 15–32. http://dx.doi.org/10.32890/ijib2019.4.2.2.
Full textAbstract:
Minimal research to date has examined whether and how corruption and diversification influence the asset quality of Islamic banks from the agency perspective. The study aims to fill this research gap using a sample of 155 banks (28 Islamic banks and 127 conventional banks) in three Asian countries (Indonesia, Malaysia, and Pakistan) from 2006 to 2012. Estimation of the dynamic panel data model reveals that corruption negatively affects the asset quality of Islamic banks whereas conventional banks see no such effect. Corruption also proves to strengthen (weaken) any negative (positive) effect of diversification on the asset quality of Islamic banks, in particular. Furthermore, the modifying effect of corruption is particularly found in more corrupt countries (Indonesia and Pakistan) as opposed to a less corrupt country (Malaysia). Overall, results suggest that banks should engage in diversification moderately because diversification’s negative effect can overpower its positive effect. In addition, Islamic banks and particularly small ones should watch out for the negative effect of corruption because these banks’ asset quality is more influenced by corruption than other banks. Furthermore, it is crucial for policymakers to effectively control corruption to maximize the asset quality of banks for better financial stability of the banking sector. This is especially true for Islamic banks because they are more likely to incur higher agency costs as opposed to conventional banks.
12
Pitchay, Anwar Allah, Nurhafiza Abdul Kader Malim, and Tajul Ariffin Masron. "Determinants of Islamic Banks’ Margins in Asian Countries." Journal of Islamic Finance 6, Special Issue (2017): 46–53. http://dx.doi.org/10.12816/0047339.
Full text
13
Ali, Muhammad, Muhammad Hanif Akhtar, and Zahid Abbas. "Financial Stability of Islamic Banks: Evidence from selected Asian Countries." Jinnah Business Review 5, no. 2 (2017): 13–21. http://dx.doi.org/10.53369/qypp1098.
Full textAbstract:
This paper is concerned with exploring financial strength of Islamic banks in Pakistan, Bangladesh, United Arab Emirates and Saudi Arabia on the bases of bank size. Using panel regression technique the paper also made a comparison between financial strength of Middle Eastern, as well as South Asian Islamic Banks and figured that on the bases of cost to income, loan to assets and some control variables, Middle Eastern Banks are financially stronger as compared to their South Asian counterparts. The study is pioneer in analyzing the issue on inter country level.
14
Mohamad, Nurul Muna, and Norazlina Abd Wahab. "EXAMINING THE RELATIONSHIP BETWEEN RISKS AND EFFICIENCY OF ISLAMIC BANKS IN MALAYSIA." International Journal of Islamic Business 1, no. 2 (2016): 90–116. http://dx.doi.org/10.32890/ijib2016.1.2.5.
Full textAbstract:
This paper aims to examine the efficiency level of Islamic banks in Malaysia and their relation to credit risk, liquidity risk and operational risk. Twelve Islamic banks were chosen as samples for this study which were taken by the availability of data, through each banks’ annual report from 2008 to 2013. This study was carried by applying the Data Envelopment Analysis (DEA) and Multiple Regression Analysis to achieve its objectives. The finding shows that Islamic banks in Malaysia exhibited a total of 77.1% of overall efficiency of technical (OTE), 83.1% of Pure Technical Efficiency (PTE) and 92.6% of Scale Efficiency (SE). Despite the global financial crisis that occured during the middle year of 2007 to the end of 2009 which slightly affected Asian countries such as Malaysia, nevertheless, Islamic banks seem to be more robust during the crisis than conventional banks. This is because of its basic nature which prohibited interest payments (riba) in all transactions. This study shows that credit risk has a negative significant relationship with efficiency of Islamic banks, while liquidity was found to be positive related to efficiency of Islamic banks. This study also found that the size of the bank has positive significant relationship to efficiency. Finding from this study give contribution to the policy makers and regulators as well as to the managers of Islamic banks by providing empirical evidence on the performance of the Islamic banks in Malaysia towards the efficiency level and risks relationship.
15
Mohamad, Mohammad Taqiuddin, Ahmad Azam Sulaiman@Mohamad, Khairul Hamimah, and Nazri Muslim. "The Determinants of Bank Profitability: How Malaysian Islamic Banks Response to the Financing Risk." Advances in Social Sciences Research Journal 6, no. 12 (2019): 1–15. http://dx.doi.org/10.14738/assrj.612.7471.
Full textAbstract:
The purpose of this article is to investigate the relationship between financing risk and profitability of Malaysian Islamic banks to find the impact of financing risk on bank profitably in achieving high level of stability. A regression analysis is built on an unbalanced panel data set comprising 175 observations of 17 top Malaysian Islamic banks over the period 1994-2015. To this end, the empirical data are collected from individual Islamic banks’ financial statements as submitted to the Central Bank of Malaysia for supervisory purposes. Complementary sources include the Global Market Information Database, the World Bank's Annual Report through the International Monetary Fund (IMF), Statistical, Economic and Social Research and Training Center for Islamic Countries (SESRTCIC) and Asian Development Bank (ADB). All the determinant variables included in the model have statistically significant impacts on Malaysian Islamic banks’ profitability. However, the effects are not uniform across profitability measures. Regression findings reveal that capital ratio, financing loss provision and liquidity ratio significantly affect the profitability of Islamic banks. Some variables of monetary policy variables such as interest rate and interbank rate have a significant role on the Islamic banks’ profitability. Interestingly, there is a difference of the two variables where interest rate shown negative sign while positive sign from interbank rate. Findings also suggest the economic conditions factors such as GDP growth and unemployment also affects the profitability of Islamic banks despite the sign is different.
16
Suripto, Arif Sugiono, and Havid Dasuki. "Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations." Banks and Bank Systems 18, no. 3 (2023): 192–204. http://dx.doi.org/10.21511/bbs.18(3).2023.16.
Full textAbstract:
This study aims to analyze the comparison of the resilience of Islamic and conventional banking in the Association of Southeast Asian Nations (ASEAN) during the COVID-19 pandemic. Comparison of banking resilience was proxied by the Capital Adequacy Ratio (CAR) and Loan-to-Deposit Ratio (LDR) factors, Return on Assets (ROA) and Non-Performing Loans (NPL) with the Multiple Discriminant Analysis test. In this case, the emphasis is placed on the patterns by which Islamic and conventional banking in ASEAN weathered the recent financial crisis during the COVID-19 pandemic. The explanatory and quantitative analysis also used a purposive sample strategy and SPSS to obtain and analyze data from 120-unit analyses of Islamic and conventional banks, respectively. From 2020 to 2021, traditional banks in the ASEAN region, especially in Indonesia, Malaysia, and Brunei Darussalam, were emphasized. Moreover, some data were prioritized regarding the Comparison of Resilience of Sharia and Conventional Banking in ASEAN after the COVID-19 pandemic. The results showed that conventional and Islamic banks had different resilience due to the influence of Capital Adequacy Ratio (CAR) and Loan-to-Deposit Ratio (LDR) factors, but there was no significant difference in the Return on Assets (ROA) and Non-Performing Loans (NPL). Based on the accuracy of the average prediction of 80%, conventional and Islamic bank groups had classification values of 48% and 88%, respectively. This indicated that Islamic financial institutions were more successful than conventional groups in implementing banking resilience.
17
Masykuroh, Ely, and Umar Abdullah. "Social Culture Analysis to Compare the Performance of Islamic Bank in Muslim-Majority Countries." El Barka: Journal of Islamic Economics and Business 5, no. 2 (2022): 355–85. http://dx.doi.org/10.21154/elbarka.v5i2.5008.
Full textAbstract:
Introduction/Main Objectives: The implementation of Islamic teachings in economic activities cannot be separated from the socio-cultural influence of the local community. Thus, there are possible differences in the expression of Islamic teachings in the economic field, especially the practice of Islamic banks in the Countries of the Middle East region with Islamic banks in countries in the Southeast Asian region. Background Problems: This difference in practice can be caused by differences in the religious behavior of bankers and customers in terms of dimensions of knowledge, passion, practice and religious rituals that are influenced by the socio-cultural of each region so that it has an impact on the performance of each Islamic bank. Novelty: No comparative research on the performance of Islamic banks based on socio-cultural analysis has been found. Research Methods: this study was analyzed the performance of Islamic banks in the Middle East and Southeast Asia regions in 2015-2020 and analyze the relevance between banking performance and socio-culture in both regional groups. The research method used is a mixed quantitative and qualitative research method (Mix Method). Sampling techniques use purposive sampling. The sample in this study was the first Islamic banks established in those countries with the criterion that these banks present annual financial statements that have been audited by independent auditors. The analysis method uses quantitative methods: descriptive statistics, normality test, and Mann-Whitney U test as well as qualitative methods, namely analysis content. Finding/Results: Between Islamic banks in the Middle East and Southeast Asian countries in 2015-2020 there are differences in profitability performance, capital ratios, and liquidity, there is no difference in credit efficiency and effectiveness performance, there is relevance between socio-cultural differences and profitability performance, capital ratios, and liquidity between Islamic banks in the Countries of the Middle East and Southeast Asia regions, and there is no relevance between socio-cultural differences and the performance of credit efficiency and effectiveness between Islamic banks in the countries of the Middle East and Southeast Asia regions.
18
Hambali, Muhammad Soleh, and Saipul Arni Muhsyaf. "Assessing the Economic Contributions of Islamic and Conventional Banks in Asian OIC Countries." JURNAL SOSIAL EKONOMI DAN HUMANIORA 10, no. 3 (2024): 446–54. http://dx.doi.org/10.29303/jseh.v10i3.612.
Full textAbstract:
This study explores the differential impacts of Islamic and conventional banks on economic growth within Asian member countries of the Organization of Islamic Cooperation (OIC). Utilizing a dataset of 1,846 observations from eight OIC countries, panel regression techniques are employed to assess the effects of these banking models on key economic growth indicators: GDP growth and GDP per capita growth. The analysis reveals that Islamic banks have a significantly greater positive impact on both GDP growth and GDP per capita growth compared to conventional banks. The findings highlight that Islamic banking principles, such as risk-sharing and asset-backed financing, contribute to a more stable and inclusive financial environment, enhancing overall economic development. The results underscore the importance of promoting Islamic banking alongside conventional banking to foster sustainable economic growth. Policymakers and financial regulators should consider incorporating the strengths of Islamic banking into regulatory frameworks to improve financial stability and resilience. Future research should investigate the long-term impacts of Islamic and conventional banking on economic growth across different regions and economic conditions, as well as the interplay between regulatory environments and financial sector performance.
19
Zakiah, Farah, and Al-Hasan Al-Aidaros. "Customers’ Islamic ethical behavior: the case of Malaysian Islamic banks." Humanomics 33, no. 3 (2017): 371–83. http://dx.doi.org/10.1108/h-03-2017-0046.
Full textAbstract:
Purpose The purpose of this paper is to determine the framework of customers’ Islamic ethical behavior in Islamic banks in Malaysia. Design/methodology/approach This paper used a quantitative approach based on Maqasid Shariah (objectives of Islamic law) and by running exploratory factor analysis. A survey questionnaire was created. The data of 530 respondents were collected from the customers of Islamic banks located in Malaysia. Findings The findings revealed that the theoretical framework consists of four main constructs: Islamic ethical behavior, religious obligation, reputation and profit and investment, in which all constructs are complying with Maqasid Shariah and three (i.e. Islamic ethical behavior, religious obligation and reputation) consist of two components for each construct. Research limitations/implications There are two limitations that require further acknowledgements. First, the study population only focused on Islamic banks’ customers. Second, this research highlighted only Malaysia and Malaysian citizens. Originality/value The paper contributes to the literature on Islamic ethical behavior in Southeast Asian economy. Unlike other Islamic ethical studies where the writing is mainly theoretical in nature, this study used an empirical method to reveal what should constitute for the framework of customers’ Islamic ethical behavior which is based on Maqasid Shariah.
20
Mansoor, Muhammad, Nazima Ellahi, Arshad Hassan, Qaisar Ali Malik, Abdul Waheed, and Naeem Ullah. "Corporate Governance, Shariah Governance, and Credit Rating: A Cross-Country Analysis from Asian Islamic Banks." Journal of Open Innovation: Technology, Market, and Complexity 6, no. 4 (2020): 170. http://dx.doi.org/10.3390/joitmc6040170.
Full textAbstract:
This study aimed to investigate the association between corporate governance characteristics, shariah governance characteristics, and the credit rating of Asian Islamic banks. To do so, we collected data from 22 banks during the 2006–2018 period. In total, we observed 286 data points. Credit rating was measured through an adaption of the credit rating scale that measured the long term credit of Islamic banks on an ordinal scale. From these data, 19 scores (Aaa) were considered high credit ratings and 1 score (C) was considered a low credit rating. Descriptive statistics, correlations, and the ordered logit regression model were applied in a panel setting. We found that the board interlock, board independence, CEO duality, and board foreign directorship negatively affected credit ratings. We also found that the board size, board accounting, finance knowledge, presence of women on the board, shariah board size, presence of supervisory shariah board, the shariah board interlock, and presence of female shariah scholars all were positively associated with credit ratings. This study suggests that Islamic banks can access more funds with higher shariah compliance. As such, we concluded that evaluating organizations’ credit ratings must consider shariah governance attributes as determinants of the credit rating of Islamic banks.
21
Rajabi, Ehsan, and Junaina Muhammad. "The Stock Markets, Banks and Growth Nexus: Asian Islamic Countries." Economic Notes 43, no. 2 (2014): 137–65. http://dx.doi.org/10.1111/ecno.12022.
Full text
22
Zuhroh, Idah. "How Does Profitability, Size, and Capital Affect Credit Risk?: Evidence from Islamic Banks in Asian Countries." Falah: Jurnal Ekonomi Syariah 7, no. 1 (2022): 13–23. http://dx.doi.org/10.22219/jes.v7i1.19469.
Full textAbstract:
The study aims to analyze the effect of profitability, size, and capital on the credit risk of Islamic banks in Asian countries through the mediating variable of financing by path regression analysis. Data were obtained quarterly from 2015Q1 – 2020Q3. Method of the study usedcausal research design, namely research that has the main objective of proving a a relationship affecting and being influenced by the variables studied. The findings conclude that size and profitability significantly affect credit risk through the financing mediation variable. Capital does not significantly reduce credit risk because it only functions to mediate financing. Meanwhile, increased financing will also increase the credit risk of Islamic banks in the Asian Region. The study can explain why there is an inconsistency of the effect profitability, size, capital, on credit risk because there is a financing mediation role. The implication of policy that the Islamic bankers in Asian countries must more prudent to manage financing so that credit risk is controlled.
23
Basri, Mohd Faizal, Amirul Afif Muhamat, and Mohamad Nizam Jaafar. "The efficiency of Islamic banks in Malaysia: Based on DEA and Malmquist productivity index." Journal of Emerging Economies and Islamic Research 6, no. 3 (2018): 15. http://dx.doi.org/10.24191/jeeir.v6i3.8784.
Full textAbstract:
This paper aims to investigate the impact of liberalisation move by Bank Negara Malaysia (BNM) towards the efficiency of domestic and foreign Islamic banks (IBs) in Malaysia. This is consequence of decision of BNM that awarded licenses to three international IBs, namely Kuwait Finance House (KFH), Al Rajhi Bank, and Asian Finance Bank in 2005. In addition, this study takes into consideration the existing foreign banks in the country that operate via Islamic banking subsidiaries as part of foreign IBs. The research evaluates the impact of foreign Islamic banks in Malaysia by measuring their contribution to the growth of the Malaysian Islamic banking industry. Using a sample of 16 IBs in Malaysia from 2008 to 2015, the study uses Data Envelopment Analysis (DEA) in measuring the efficiency level of each bank and comparative between the performance of domestic and foreign IBs in the country. The paper also employs the Malmquist Productivity Index to gauge the changes in its components between the same subjects and timeframe. The DEA results showed that the domestic Islamic banks are considered more efficient than most domestic Islamic banks outperforming the foreign Islamic banks. Banks like Hong Leong Islamic, Maybank Islamic, Public Islamic, and RHB Islamic are considered among the top performers for technical efficiency and scale efficiency. The study also found that based on the Malmquist Productivity Index, the least efficient banks based on DEA have improved in technical efficiency, technology, and total factor productivity (TFP).
24
Rehman, Nadeem Ur, and Kiran fatima. "Is Digital Financial Inclusion Valuable to Banks' Profitability and Long-Term Economic Development? Developing Asia Indications." Scandic Journal Of Advanced Research And Reviews 2, no. 3 (2022): 039–69. http://dx.doi.org/10.55966/sjarr.2022.2.3.0042.
Full textAbstract:
he current study was an attempt to examine and ensure the existence of relationship between digital financial inclusion and banks economic stability and the importance of DFI for banking organizations of Asian countries. The current study incorporated data from six different countries and sixty-five banks primarily Islamic banks, as Islamic banking system has proved itself reliable in the times of DFC of 2007-09 and their contribution to improve and stable the global economy during and after the financial crises of 2007-09 and Covid-19.
25
Putri, Hastini Busarotun Ika, and Rifqi Muhammad. "Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan." Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah 6, no. 1 (2023): 206–18. http://dx.doi.org/10.47467/alkharaj.v6i1.2743.
Full textAbstract:
This study aims to determine the effect of the implementation of sharia and corporate governance on the performance of Islamic banks in Southeast Asia. This study uses a collection of data collected manually on sharia and corporate governance variables from 25 Islamic banks from 5 Southeast Asian countries for the period 2014-2020. The types of statistical analysis carried out are descriptive statistics, panel data regression, and static regression tests. The results of this study reveal that the variables related to Islamic corporate governance are more influential in determining the financial performance of Islamic banks. The regression results of the sharia supervisory board, board of directors meetings, board of commissioners meetings, remuneration and nomination committees, and risk monitoring committees of firm size have a positive effect on increasing financial performance, while audit committees and company age do not have a positive effect on increasing financial performance. This study enriches the understanding of Islamic corporate governance, corporate governance and the financial performance of Islamic banks in Southeast Asia
26
Hamid, Fazelina Sahul, and Norhanishah Mohd Yunus. "Bank-Lending Channel of Monetary Policy Transmission: Evidence from ASEAN." Global Business Review 21, no. 4 (2019): 892–905. http://dx.doi.org/10.1177/0972150919856959.
Full textAbstract:
This article examines the existence of a bank-lending channel in Association of Southeast Asian Nations (ASEAN) using a sample of 328 banks from 2009 to 2015. The findings confirm that a bank-lending channel is effective. In particular, we find that consumer loans and commercial loans are sensitive to changes in monetary policy, but mortgage and corporate loans are not. We also find that commercial banks are vulnerable to monetary policy changes, but both investment and Islamic banks are not. On the contrary, special purpose banks are able to overcome the effect of monetary policy tightening by supplying more loans. The effectiveness of a bank-lending channel in ASEAN also holds when we control for the differences in governance structure of the countries. Policymakers need to take these into consideration in designing an effective monetary policy.
27
Ahmad, Nor Hayati bt, Mohamad Akbar Mohamad Noor, and Fadzlan Sufian. "The efficiency of Islamic banks: empirical evidence from the Asian countries' Islamic banking sectors." J. for International Business and Entrepreneurship Development 5, no. 2 (2010): 154. http://dx.doi.org/10.1504/jibed.2010.036999.
Full text
28
Firdaus, Firdaus, Risman Hambali, and Alvi Ziani. "ANALISIS KOMPARATIF KINERJA KEUANGAN BANK SYARIAH DI KAWASAN ASIA TENGGARA." Inspirasi Ekonomi : Jurnal Ekonomi Manajemen 5, no. 3 (2023): 175–92. http://dx.doi.org/10.32938/ie.v5i3.5184.
Full textAbstract:
This research is motivated by the large gap in terms of assets, Islamic banks in Southeast Asia are still far behind when compared to the Middle East region. Meanwhile, the development of Islamic banking in Southeast Asia has not spread evenly and thoroughly. This study analyzes the comparison of the financial performance of Islamic banks in the Southeast Asian region in terms of the NPF, FDR, ROA, ROE and CAR ratios for the 2016-2020 period. The sample of this study consists of three Islamic banks in three countries (Indonesia, Malaysia and Brunei Darussalam) that publish their financial statements. The Kolmogorov-Smirnov/Shapiro-Wilk test was used to test the normality of the data. Meanwhile, ANOVA and Kruskal-Wallis tests were used for hypothesis testing. The results of this study show that there are significant differences in the financial performance of Islamic banks in Indonesia, Malaysia and Brunei Darussalam as measured by the NPF, FDR, ROA, ROE and CAR ratios for the 2016-2020 period.
29
Kunhibava, Sherin. "Islamic Banking in Malaysia†." International Journal of Legal Information 40, no. 1-2 (2012): 191–201. http://dx.doi.org/10.1017/s0731126500006478.
Full textAbstract:
AbstractIslamic banking is the conduct of banking according to Shariah or Islamic law. Statistically Islamic banking has had phenomenal growth, according to the Asian Banker Research Group, the world's 100 largest Islamic banks have set an annual asset growth rate of 26.7% and the global Islamic finance industry is experiencing an average growth of 15-20% annually1. Recently the Prime Minister of Malaysia commented that Malaysia has been maintaining its leadership in Islamic banking and finance for over three decades2. As an International leader in Islamic banking, it would be interesting to explore the development of Islamic banking in Malaysia. This will be the objective of this paper. This paper will focus on the historical development of Islamic banking in Malaysia, from the creation of the Haj Pilgrim's Fund Board in the 1960s to the current Islamic banking scene of 17 local Islamic banks and five International Islamic banks in operation. This paper will also explore the unique regulatory and governance framework of Islamic banking in Malaysia, by touching on the Islamic banking Act 1983, the Central Bank of Malaysia Act 2009, the Banking and Financial Institutions Act 1989 and the Shariah Governance Framework introduced in 2011 by the Central Bank of Malaysia. This paper will also briefly introduce how Islamic banking works.
30
Zeb, Shumaila. "Institutional Environment and Bank Capital Ratios: Empirical Evidence from SAARC Countries." Lahore Journal of Business 10, no. 2 (2022): 53–81. http://dx.doi.org/10.35536/ljb.2022.v10.i2.a2.
Full textAbstract:
: The purpose of this study is to investigate the impact of the institutional environment on the capital ratios of banks operating in the South Asian Association for Regional Cooperation (SAARC) area. We apply the Hausman-Taylor methodology to unbalanced panel data of 145 banks (109 conventional and 36 Islamic banks) for the period 2010 to 2019. The findings demonstrate that banks with greater creditors’ rights have a low regulatory capital ratio. Similarly, banks are reluctant to hold a high regulatory capital ratio as a result of greater corruption perception. However, countries with more financial openness hold higher regulatory capital ratios to present greater financial strength. We also provide evidence that the impact of creditors’ rights is more distinct in conventional banks than in Islamic banks. Finally, we demonstrate that with more financial openness, small banks hold a higher regulatory capital ratio than large banks.
31
Misman, Faridah Najuna, and M. Ishaq Bhatti. "The Determinants of Credit Risk: An Evidence from ASEAN and GCC Islamic Banks." Journal of Risk and Financial Management 13, no. 5 (2020): 89. http://dx.doi.org/10.3390/jrfm13050089.
Full textAbstract:
In less than a decade, the Islamic Banking (IB) industry has become an essential part of the global financial system. During the last ten years, the IB industry has witnessed changes in economic conditions and proved to be resilient during the periods of financial crisis. This paper aims to examine the important issues related to credit risk in selected Islamic banks in nine countries from Association of South East Asian Nations (ASEAN) and Gulf Cooperation Council (GCC) regions. It employs the generalized least squares panel data regression, to estimate the ratio of non-performance financing to total financing as dependent variables and bank specific variables (BSV) to determine the credit risk. It uses 12 years of unbalanced panel data from 40 different Islamic banks. The overall findings show that financing quality has a significant positive effect on credit risk. It is observed that the larger IBs owned more assets with lower credit risk compared to smaller banks. The bank’s age is also an important factor influencing the credit risk level. Moreover, regulatory capital significantly reduces the credit risk exposure adherence to the minimum regulatory capital requirements which help IBs to manage their credit risk exposures. It was also observed that IBs were not affected by the global financial crisis due to less credit risk compared to the conventional banks.
32
Rosman, Romzie, and Abdul Rahim Abdul Rahman. "The practice of IFSB guiding principles of risk management by Islamic banks." Journal of Islamic Accounting and Business Research 6, no. 2 (2015): 150–72. http://dx.doi.org/10.1108/jiabr-09-2012-0058.
Full textAbstract:
Purpose – The purpose of this study is to examine the nature of the risk management practices of Islamic banks as recommended by the Islamic Financial Services Board (IFSB) in managing their unique risks. This study also explores the differences in risk management practices based on the country, size, type and age of the bank. Design/methodology/approach – A questionnaire was developed to investigate the risk management practices. The main reference for the questionnaire was the IFSB Guiding Principles of Risk Management and the respondents were either the chief risk officers or holders of other senior positions involved in risk management in the Islamic banks. A non-parametric test was then conducted to explain the difference in mean scores for the unique risk management practices by the Islamic banks. Findings – A lack of effective risk management practices was found in relation to liquidity risk, displaced commercial risk and equity investment risk by Islamic banks. However, Islamic banks were comparatively good in managing operational risk/Shari’ah non-compliance risk. The study found that there was a significant difference in the practice of equity investment risk management based on the size, type and age of the Islamic bank. In addition, a significant difference was found between the Islamic banks in the Middle Eastern and North African (MENA) and Asian countries concerning the practice of both displaced commercial risk and operational risk/Shari’ah non-compliance risk management. Research limitations/implications – In spite of the limitations in non-parametric analysis, this analysis was preferred inasmuch as the data were measured on an ordinal scale with a small sample size. Originality/value – This study is among the few studies that examine and explore the risk management practices of Islamic banks internationally by explaining the unique risks encountered in Islamic finance.
33
Daoud, Yomna, and Aida Kammoun. "Banking Regulation and Financial Soundness Nexus in View of the Crisis: An Islamic Banking Perspective." International Journal of Economics and Financial Issues 14, no. 2 (2024): 168–77. http://dx.doi.org/10.32479/ijefi.15760.
Full textAbstract:
The COVID-19 pandemic significantly affected global finances and economies, posing a risk of global GDP decline. This research examines the soundness and dynamics of Islamic banks from 2017Q1 to 2023Q1. The study focuses on eight countries selected based on the systemic importance of their Islamic banks: Saudi Arabia, UAE, Bahrain, Oman, Pakistan, Malaysia, Brunei, and Indonesia. The analysis is based on several key indicators including size, profitability, non-performing financing, and capital adequacy. Our analysis shows that the Islamic banks' response to the pandemic is not uniform across jurisdictions. Saudi Arabia and Southeast Asian countries (Malaysia and Indonesia) are expected to remain stable. This reflects the Islamic banks' desire to integrate more closely into the global financial system by holding higher capital adequacy ratios. Effective banking regulation is necessary to ensure the stability and credibility of the financial industry. Other regions may face challenges that require additional policies to ensure the stability of their Islamic banking sectors. Several financial soundness indicators and jurisdictions have shown notable improvements, with some levels reaching pre-pandemic levels. This reflects the effectiveness of the COVID-19 policy support measures implemented since 2020.
34
Hawariyuni, Weni, and Aryadimas Suprayitno. "The Determinants of Capital Structure of Islamic Banks in Indonesia, Malaysia, and Brunei Darussalam." Journal of Sustainable Economics 1, no. 2 (2023): 77–84. http://dx.doi.org/10.32734/jse.v1i2.14323.
Full textAbstract:
This study is to determine the effect of Profitability, Liquidity, Asset Growth, Bank Size, and Asset Structure on the Capital Structure of Islamic banks in Indonesia, Malaysia, and Brunei Darussalam. The type of research used is descriptive quantitative, which is a descriptive approach with a quantitative approach. The analysis technique used is panel data regression with fixed effect model is the selected model. The population used in this study is Islamic banks in Indonesia, Malaysia, and Brunei Darussalam. The data was collected from Asian Banker website for 27 banks. The sample selected using purposive sampling method was 22 Islamic banks in Indonesia, Malaysia and Brunei Darussalam which consistently published annual reports during 2015-2021 period. Data collection was carried out using secondary data in the form of annual reports of 22 banks during the 2015-2021 period. The results showed that the Profitability and Asset Growth variables had a positive and insignificant effect on Capital Structure, Liquidity had a negative and significant effect on Capital Structure, and Bank Size and Asset Structure had a significant positive effect on Capital Structure.
35
Indrawati, Anggi, Fadia Haya Putri, and Rofiul Wahyudi. "Analisis Kinerja Bank Syariah Negara OKI pada Era Digital: Studi Masa Pandemi Covid-19." Journal Of Institution And Sharia Finance 5, no. 1 (2022): 51–65. http://dx.doi.org/10.24256/joins.v5i2.3360.
Full textAbstract:
This study aims to analyze the performance of Islamic banks in OKI countries in the digital era during the pandemic. This research is a quantitative research with a descriptive approach. The sample in this study was selected based on a purposive sampling technique in order to obtain nine Islamic Cooperation Organization (OKI) countries with the top rankings according to the Asian Banker in 2020. Secondary data in this study were in the form of quarterly financial reports for the 2020 observation period. The data analysis technique used descriptive statistics for provides a complete picture of the financial performance of Islamic banks during the Covid-19 pandemic. The results show that the performance of Islamic banks in the nine OKI countries was not affected during the Covid-19 pandemic. On the other hand, the Covid-19 pandemic has actually encouraged the digitization of digital banking services and transactions to maintain profits during the Covid-19 pandemic.
36
Mariana, Anita, Warno Warno, and Firdha Rahmiyanti. "Comparative Study on Disclosure of Islamic Social Reporting (ISR) Based on the ISR Index between Islamic Banking in Asia and Africa." AL-ARBAH: Journal of Islamic Finance and Banking 5, no. 1 (2023): 85–98. http://dx.doi.org/10.21580/al-arbah.2023.5.1.17991.
Full textAbstract:
Purpose - This study aims to compare the level of disclosure of Islamic Social Reporting between Islamic banking in Asia and Islamic banking in Africa using the ISR index approach. Method - The data analysis in this study used content analysis. The sample in the study was 18 Islamic Commercial Banks with purposive sampling method.Result - The results of the study show that there are differences in the implementation of social performance of Islamic banking in Asia and Africa. This is proven by the results of the Mann Whitney test with a sig value of 0.001 greater than α = 5%. There is some evidence that of all Islamic banks, both Asian and African, none has yet achieved 100% (one hundred percent) implementation and disclosure of the ISR Index.Implication - This research uses secondary data in the form of annual reports and annual financial reports on the respective official websites of Islamic Commercial Banks in Asia and Africa during the 2012-2020 period.Originality- Further research is expected to be able to use or add variables and increase the research sample so as to obtain results that better describe the actual situation.
37
Kadir, Hazlina Abd, Aurora Noor Aisa, Zarehan Selamat, and Hamsatulazura Hamzah. "Basel Requirement and Financial Stability of Islamic Banks in Selected Asian Countries." Advanced Science Letters 23, no. 1 (2017): 410–13. http://dx.doi.org/10.1166/asl.2017.7201.
Full text
38
Kusuma, Kumara Adji, Farih Ayu Mukhoirotin Sirojul Umma Rosyihin, Febi Putri Maharani, Mochamad Rizal Yulianto, and Khoong Tai Wai. "INTERNATIONAL BUSINESS STRATEGY FOR ISLAMIC BANKING INDUSTRY IN INDONESIA: AN ANALYSIS FOR EXPANSION." Journal of Economic and Economic Policy 2, no. 1 (2025): 34–46. https://doi.org/10.61796/ijecep.v2i1.57.
Full textAbstract:
Objective: The Indonesian Islamic banking industry holds tremendous potential for growth, driven by factors like the large Muslim population, government support, increasing economic activity, and growing demand for ethical and Sharia-compliant financial products. In its implementation of course there are challenges, but with the right strategies, Indonesia’s Islamic banking sector could emerge as a leader not only in the Southeast Asian region but also on the global stage. This study will be covering the environments where an Islamic bank would survive, grow and develop itself, including examining on the current situation of the Islamic banking industry in Indonesia: its strength, weakness, opportunities and threats internally and externally. Method: This study uses a qualitative method with primary and secondary data collection. This research approach uses a case study of Indonesian Islamic banks. Results: The result of the analysis will be used to build up a structure, let’s say a methodology, a mechanism or a framework which allows an Islamic bank in Indonesia to mapping out and measure the feasibility of its enterprise in the targeted country as new area of market and create a step by step strategy for the bank to strengthen its basis in the new market. This will help the Indonesian Islamic financial institution especially Islamic banks in opening up the expansion possibilities in a certain country in the world. Novelty: This will help the Indonesian Islamic financial institution especially Islamic banks in opening up the expansion possibilities in a certain country in the world.
39
Khan, Tahreem Noor. "Islamic banks web-marketing during the Covid-19 crisis." Indonesian Journal of Social Sciences 14, no. 1 (2022): 1–13. http://dx.doi.org/10.20473/ijss.v14i1.34040.
Full textAbstract:
Online platforms are particularly important in times of crisis, as they are a vital channel for providing and ensuring access to information. Competition increases the value of digital marketing in the banking sector; however, it also makes it more difficult to stand out in the disruption and uncertainty caused by the COVID-19 outbreak. Realizing the fact that the website has become mainstream in corporate marketing, this research investigates the practice of marketing by the largest and strongest 11 Islamic banks globally listed by the Asian Banker (2019). Information on visual elements, product features, and post locations related to corona safety precaution information was extracted from bank web pages. With that, also followed the post related to option of an opening online account and digital channel safety concern during COVID-19. Furthermore noticed on the bank webpage about the government funding for Corona activities and financial assistance to SMEs. The findings of this research suggest that in any crisis and fluid situation, where uncertainty existence is likely to be high, Islamic banks must be prepared to alter web-interface communication approaches and marketing strategies to reach their customers. To stay afloat in a highly competitive digital world, banks can advertise relevant product offerings during the Coronavirus crisis. Navigation and accessibility related to Coronavirus information on the website should be straightforward, highlight socially responsible activities, focus on customers with financial difficulty, and use differentiated and personalized banking services. Customers will regard such initiative and perceive their bank brand as compassionate, kind, and unpretentious.
40
Kashif, Muhammad, Mohsin Abdur Rehman, and Lina Pileliene. "Customer perceived service quality and loyalty in Islamic banks." TQM Journal 28, no. 1 (2016): 62–78. http://dx.doi.org/10.1108/tqm-01-2014-0006.
Full textAbstract:
Purpose – There is a plethora of research which has dealt with service quality issues in various service organizations. But a few researchers have presented state of service quality from a cultural perspective, especially within an Asian cultural context. The purpose of this paper is to measure service quality of Pakistani Islamic banks through validating a culturally sensitive scale: PAKSERV. Furthermore, the path from service quality to customer loyalty has been presented through applying PAKSERV service quality scale. Design/methodology/approach – Following a positivist tradition, the service quality to loyalty path in Islamic banking sector of Pakistan is established. A self-administered survey was conducted to approach 300 Islamic bank customers in major cities of Pakistan. The respondents were purposefully selected based on their extent of using the retail banking services. The data were analysed through employing various quantitative measures such as correlation and structural equation modelling employing AMOS. Findings – The findings reveal that Pakistani Islamic banking customers are satisfied with the service quality offered. All the dimensions of PAKSERV are found to significantly contribute towards customer satisfaction and loyalty. However, major focus of customer is on the dimensions such as responsiveness and sincerity which are understandable in high-risk avoiding and moderately power-oriented Pakistani society. Originality/value – The research has been first of its type to present the validity of PAKSERV scale in a collectivist cultural context of Pakistan. Furthermore, the path from the customer satisfaction to loyalty by employing PAKSERV scale has been presented for the first time.
41
Akhmad Taufiq Satrio Wibowo. "Analisis Stabilitas Perbankan Syariah dan Perbankan Konvensional di Indonesia Tahun 2008-2020." Al-Musthofa: Journal of Sharia Economics 7, no. 2 (2024): 126–47. https://doi.org/10.58518/al-musthofa.v7i2.3221.
Full textAbstract:
Banking stability is a crucial problem in the current economy, especially after the Asian economic crisis in 1997 and the global crisis in 2008. This research aims to analyze the stability of Islamic banking by including macroeconomic variables in the form of the BI rate, inflation, exchange rate. tariffs and GDP as variables. its independence. Several previous studies applied NPF/NPL which measures credit risk ratios to test bank stability. Current research uses Z-Score to test bank stability. This research aims to find out whether there are differences in the financial performance of Islamic and conventional banks from 2008 to 2020. Testing and data analysis methods use Eviews. The results of this research show that banking stability, both conventional and sharia, is a vital aspect in maintaining the integrity of a country's financial system. Z-score as an indicator provides a comprehensive picture of a bank's stability by considering internal and external risks. In the context of this research, the finding that the BI Rate has a negative impact on the stability of conventional banks highlights the importance of monetary policy in managing interest rates to maintain the health of the banking sector. On the other hand, the negative impact of inflation on the stability of conventional and sharia banks emphasizes the need to control inflation to prevent disruption to banking performance.
42
Taufiq, Taufiq, and Razali Razali. "The Role of Financial Inclusion in Islamic Bank Efficiency: Evidence from Asian OIC Countries." Share: Jurnal Ekonomi dan Keuangan Islam 13, no. 2 (2024): 578. https://doi.org/10.22373/share.v13i2.22894.
Full textAbstract:
The role of financial inclusion in determining the efficiency of Islamic banks remains understudied despite its significance. This study seeks to bridge this gap by introducing financial inclusion as a novel variable influencing Islamic bank performance. Analyzing panel data from Sharia banking across OIC Asian countries from Q3 2018 to Q1 2023, the research employs random effect model regression analysis (GLS) to assess the impact of financial inclusion on two efficiency measures, operational and cost efficiency. The analysis reveals that financial inclusion positively impacts cost efficiency but negatively affects operational efficiency. This indicates that financial inclusion in these banks is low due to factors such as high participation of low-income customers, interest rate restrictions, and limited product offerings by Islamic banks. In addition, cultural and economic factors also contribute to this trend. To enhance cost efficiency, it is recommended that Islamic banks improve service accessibility for customers. Furthermore, operational efficiency is positively influenced by capital adequacy, loans, profitability, and bank size, while negatively affected by banking risk. Policymakers should focus on strengthening financial infrastructure and legal systems to promote greater financial inclusion. Bank managers are advised to exercise caution in loan issuance to avoid inefficiencies, and identifying key efficiency factors is crucial for developing effective strategies for sustainability in Islamic banking.========================================================================================================ABSTRAK – Peran Inklusi Keuangan dalam Efisiensi Bank Syariah: Bukti dari Negara-negara OKI di Asia. Walaupun dianggap penting, peran inklusi keuangan syariah dalam menentukan efisiensi bank syariah masih belum banyak dikaji. Oleh karena itu, penelitian ini bertujuan untuk menguji pengaruh variabel inklusi keuangan syariah terhadap efisiensi bank syariah di negara-negara Organisasi Kerjasama Islam (OKI) yang ada di Asia dari kuartal 3-2018 sampai kuartal 1-2023. Penelitian ini mengumpulkan data panel dari sejumlah bank syariah di negara-negara tersebut untuk kemudian dilakukan analisis regresi dengan random effect model (GLS), menggunakan dua ukuran efisiensi, yaitu efisiensi operasional dan efisiensi biaya. Hasil penelitian menunjukkan bahwa inklusi keuangan berdampak positif terhadap efisiensi biaya tetapi berdampak negatif terhadap efisiensi operasional. Hal ini berarti bahwa rendahnya inklusi keuangan pada perbankan syariah disebabkan oleh sejumlah faktor seperti tingginya jumlah nasabah berpenghasilan rendah, pembatasan suku bunga, dan kurangnya variasi produk yang ditawarkan oleh bank syariah. Selain itu, faktor budaya dan ekonomi juga berperan signifikan terhadap hasil ini. Untuk meningkatkan efisiensi biaya, disarankan agar bank syariah meningkatkan aksesibilitas layanan bagi pelanggan. Selain itu, efisiensi operasional dipengaruhi secara positif oleh kecukupan modal, pinjaman, profitabilitas, dan ukuran bank, sementara dipengaruhi secara negatif oleh risiko perbankan. Pembuat kebijakan harus fokus pada penguatan infrastruktur keuangan dan sistem hukum untuk mendorong inklusi keuangan yang lebih baik. Pihak bank disarankan untuk berhati-hati dalam penerbitan pinjaman untuk menghindari inefisiensi, dan mengidentifikasi faktor-faktor utama yang dapat meningkatkan efisiensi sehingga dapat merumuskan strategi keberlanjutan bagi perbankan syariah.
43
Setyawan, Aris, Murniati Mukhlishin, and Sigid Eko Pramono. "Pengaruh Kualitas Corporate Governance terhadap kinerja Perbankan Syariah: Studi Negara Asia Tenggara." Indonesian Journal of Islamic Economics and Business 9, no. 1 (2024): 40–61. http://dx.doi.org/10.30631/ijoieb.v9i1.2077.
Full textAbstract:
This study aims to examine the effect of corporate governance quality on financial performance in Islamic banking in the Southeast Asian region by looking at the relationship between variables with each other. The dependent variable in this study is Financial Performance proxied by ROA (Return on Asset). The independent variable is Corporate Governance which is proxied by the Size of the Audit Committee, and the Number of Audit Committee Meetings, the Size of the Sharia Supervisory Board, and the Number of Sharia Supervisory Board Meetings. The data analysis method in this study uses multiple linear regression. The research samples used in this study were 10 (ten) Islamic commercial banks in Southeast Asian countries. The data used in this study are secondary data from annual reports and good corporate governance reports of Islamic banking in Southeast Asia for the period 2015-2019. The research findings show that GCG proxied by the Size of the Audit Committee and the Number of Audit Committee Meetings has no significant effect on financial performance proxied by ROA (Return on Asset). Meanwhile, GCG proxied by the Size of the Sharia Supervisory Board and the Number of Sharia Supervisory Board Meetings has a significant effect on financial performance proxied by ROA (Return on Asset). This shows that the role of the Sharia Supervisory Board in ensuring that company operations run in accordance with Islamic values has a very important role and is the core of the integrity and credibility of Islamic Banks and has a significant influence in improving the company's financial performance.
44
Ismail, Muhammad, Ahmad Syathiri, and Anna Yulianita. "Effect of Financing to Deposit Ratio (FDR), Net Operating Margin (NOM), and Efficiency to Profitability of Islamic Banks in ASEAN." Modern Economic 34, no. 1 (2022): 43–49. http://dx.doi.org/10.31521/modecon.v34(2022)-06.
Full textAbstract:
Abstract. Introduction. Profitability is a comparison that can be used to measure a company's ability to generate profits in general business activities. The main factors in increasing profitability are aspects of liquidity, efficiency and revenue sharing. Purpose. This study aims to discuss how the influence of the distribution of Third Party Funds (DPK), Efficiency, and Interest Income on the Profitability of Islamic Banks. This study uses the variables of Financing to Deposit Ratio (FDR), Net Operating Margin (NOM), and Efficiency as measured by BOPO (Operating Costs and Operating Income) to Profitability as measured by ROE (Return On Equity) in Islamic banking in Indonesia and Malaysia. The sample in this study consisted of 5 Islamic banking companies in the Southeast Asian region. The population of this study is Islamic banking companies taken from the publications of the ASEAN Islamic Bank for the period 2014 to 2019. The statistical test tool in this study is Eviews 9 which is used for panel data regression testing. Results. This study shows that the variable operating costs and operating income (BOPO) has a negative and significant effect on Return On Equity (ROE). while the variables Financing to Deposit Ratio (FDR) and Net Operating Margin (NIM) have a negative and insignificant effect on Return On Equity ROE. Conclusions. In this study efficiency has a significant effect on profitability as measured by ROE.
45
Kamarudin, Fakarudin, Fadzlan Sufian, Foong Wei Loong, and Nazratul Aina Mohamad Anwar. "Assessing the domestic and foreign Islamic banks efficiency: Insights from selected Southeast Asian countries." Future Business Journal 3, no. 1 (2017): 33–46. http://dx.doi.org/10.1016/j.fbj.2017.01.005.
Full text
46
Budiman, Teguh, Erie Febrian, and Yudi Azis. "The Effect of Geographical Factors on Islamic Banking Sustainability Performance: An Instrumental Variable Quantile Regression Analysis." Asian Economic and Financial Review 12, no. 2 (2022): 70–88. http://dx.doi.org/10.18488/5002.v12i2.4411.
Full textAbstract:
There is an ongoing debate on how Islamic banks contribute to bank sustainability. Theoretically, Islamic ethics promote sustainability, also called Maqasid al-shari'ah. This paper investigates the effect of geographical factors on Islamic bank sustainability. A theoretical and empirical model was developed to assess this relationship. It was hypothesized that geographical factors affect Islamic bank sustainability. Countries in specific geographical locations that are dominated by Islamic rules, such as the Middle East, have different magnitudes compared to east Asian countries that have fewer Islamic rules. A geographical risk model was developed according to the Maqasid al-Shari'ah concept and was employed based on a microeconomic banking model that portrays a variety of risks for 159 Islamic banks in ten countries. We constructed variables from macroeconomic databases, such as the World Development Indicators, and microeconomic databases, such as financial indicators and environmental, social, and governance (ESG) data from Thomson Reuters from 2012 to 2019. The analysis was conducted using panel instrumental variable regression to test the hypothesis; however, geographical risk variables produced biased results affecting Maqasid financing. The method was refined with IV quantile regression. It was found that geographical factors are strongly related to the improvement of Maqasid financing in Middle East regions, whereas in eastern regions this is vice versa. The results indicate that geopolitical factors stimulate Maqasid financing for Sustainable Development Goals.
47
Lebdaoui, Hind, and Joerg Wild. "Islamic banking presence and economic growth in Southeast Asia." International Journal of Islamic and Middle Eastern Finance and Management 9, no. 4 (2016): 551–69. http://dx.doi.org/10.1108/imefm-03-2015-0037.
Full textAbstract:
Purpose The purpose of this study is to empirically assess the relationship between Islamic banking presence in Southeast Asian countries and the economic growth. Design/methodology/approach The presence of Islamic banks is measured by the ratio of Islamic to conventional banking assets as well as the ratio of deposits of Islamic to conventional banking. This study starts by checking the presence of cointegration using Pedroni’s and Westerlund’s specifications; short- and long-run dynamics are further analyzed with the panel autoregressive distributed lag model (ARDL)-based estimators: pooled mean group (PMG), mean group (MG) and dynamic fixed effect (DFE). Furthermore, a two-stage regression [two-stage least squares (2SLS)] was constructed to measure the sensitivity of economic growth to the Islamic banking presence. Quarterly data from Southeast Asian countries cover the period between 2000Q1 and 2012Q4. Findings A long-run relationship is evident between economic growth and the Islamic banking presence in the selected region, but not in the short run. Furthermore, the Muslim population share in a given country plays a positive and statistically significant role in fueling the contribution of Islamic banking share in the financial sector on the economic growth. Social implications The results of this study show that Sharia-compliant banks succeeded in mobilizing additional resources for the financial sector, which may increase the stability of the banking system and the efficiency of the whole banking sector. The authors believe that the inclusion of Islamic banking products in the financial systems will, along with the diversification effect, stimulate financial deepening and, therefore, improve the financial stability in the countries under investigation in particular, and all countries with significant Muslim population in general. Originality/value This study empirically assesses the contribution of Islamic banking presence on the economic growth with a focus on Southeast Asia, as this region encompasses the most developed and experienced institutions in the field of Islamic finance. Error correction-based models such as PMG, MG and DFE lend itself to the analysis of the panel data. This study also uses the instrument-based 2SLS to cope with the endogeneity problem between the real and financial sectors.
48
Sbai, Hicham, Slimane Ed-Dafali, Hicham Meghouar, and Muhammad Mohiuddin. "Ownership Structure and Bank Dividend Policies: New Empirical Evidence from the Dual Banking Systems of MENA Countries." International Journal of Financial Studies 12, no. 3 (2024): 63. http://dx.doi.org/10.3390/ijfs12030063.
Full textAbstract:
This study investigates the relationship between ownership structures and dividend policies for 46 Islamic and 75 conventional banks from 12 MENA and Asian countries between 2012 and 2020. Logit regression is employed to estimate the regression equation, centering on the moderating impacts of the COVID-19 pandemic and national culture. Our findings remain robust as we tackle the endogeneity issue using probit and logistic regression models. Asset growth and GDP growth serve as proxies for investment opportunities. Additionally, dividend per share acts as a proxy for dividend policy. Our findings emphasize how the ownership structure impacts dividend payouts in both banking systems. We observed positive relationships between dividend payouts and foreign ownership, bank size, age, and performance. Conversely, concentration of ownership and leverage negatively influence dividend payouts. The COVID-19 pandemic directly boosts the dividend policy for conventional banks and alters the relationship between foreign ownership and distribution policy in Islamic banks. Specifically, COVID-19 interacts with foreign and state ownership to reduce dividend payouts, but concentration of ownership does not show this effect. This study furnishes evidence affirming the significance of the ownership structure in shaping the dividend payout policy within Islamic and conventional banking. The results maintain their reliability across various estimation approaches. Moreover, this study accounts for the crisis period as a moderating factor influencing dividend payments.
49
Rosman, Romzie, Norazlina Abd Wahab, and Zairy Zainol. "Efficiency of Islamic banks during the financial crisis: An analysis of Middle Eastern and Asian countries." Pacific-Basin Finance Journal 28 (June 2014): 76–90. http://dx.doi.org/10.1016/j.pacfin.2013.11.001.
Full text
50
Ahmad, Syed Magfur, and Abdullah Al Mamun. "Opportunities of Islamic FinTech: The Case of Bangladesh and Turkey." CenRaPS Journal of Social Sciences 2, no. 3 (2020): 412–26. http://dx.doi.org/10.46291/cenraps.v2i3.39.
Full textAbstract:
This paper aims to study Islamic fintech operations in Bangladesh and Turkey. FinTech is now extensively used in different countries around the world. It is known to be financial products of the twenty-first century. Fintech applications are using pervasively in the different Islamic finance operating systems. Turkey and Bangladesh emphasized more in fintech after the 2008 global financial crisis. Both countries banks prioritized in their regulations and compliance with innovation. The rise of Islamic Fintech in Turkey and Bangladesh started with the main banking applications. The use of shariah-compliant Islamic fintech in both countries are increasing significantly to carry out financial transactions and processes more efficiently through technological innovations. Qualitative methods and secondary data have been used in this study. Turkey practically became a hub for Islamic financial technology in recent years considering its operational activities. Asian countries, particularly Turkey and Bangladesh are expected to show their highest growth potential for Islamic fintech in 2020. This study also attempts to unearth the possibilities of Islamic FinTech in Bangladesh and Turkey. Islamic finance based on Islamic Shariah benefited significantly by using financial technology in recent years. Bangladesh and Turkey can be a potential destination for Islamic FinTech with the help of financial technology.