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Purpose – This study aims to measure and analyze the mediating role of e-satisfaction on the effect of e-service quality on e-loyalty of the customers of Bank Syariah Indonesia (BSI) in Banda Aceh, Indonesia.Methodology – This study gathered the primary data by distributing questionnaires to a number of 200 BSI customers that were selected as the respondents of the study using a purposive sampling technique. A Structural Equation Modelling (SEM) technique is used to test the four proposed hypotheses.Findings – The study recorded that e-service quality has positively affected the e-satisfaction and e-loyalty of the BSI customers, respectively. E-satisfaction enjoyed by banking customers has enhanced their e-loyalty. In addition, the study documented that e-satisfaction has a partial mediating effect on the relationship between e-service quality and the BSI customers’ e-loyalty.Implications – The findings of the study suggest that to promote the customers’ e-loyalty, the BSI management should focus on improving customers’ e-satisfaction by strengthening e-service quality.Originality – This study explored the mediating role of e-satisfaction on the effect of e-service quality on e-loyalty, focusing on the users of e-banking facilities of the largest Islamic banking institution in Indonesia. Therefore, this study provides significant guidelines for the Islamic banks in maintaining and enhancing e-loyalty of customers through improving their customer satisfaction by providing a high quality of services digitally nationwide.

Purpose – The study aims to determine whether Islamic banks' debt financing and equity financing are procyclical or counter-cyclical.Methodology – The data used in this study cover eight Islamic commercial banks and span from 2008 to 2020, thereby including 72 observations. The analysis employs the dynamic panel data model estimated using the GMM method (Generalized Method of Moments).Findings –The debt-based financing, under murabahah, salam, istishna, and ijarah contracts, did not display clear procyclical or counter-cyclical behavior. In contrast, equity financing based on mudharabah and musyarakah contracts demonstrated procyclical characteristics concerning economic fluctuation.Implications – Policymakers need to pay more attention to Islamic banks with a greater proportion of equity financing for both micro and macroprudential policy purposes since procyclicality is likely to be associated with higher risks. Similarly, Islamic banks with greater proportion of equity financing need to watch carefully the behavior of their equity financing concerning its effect on risks for the purpose of their risk management and prudential policy. Originality – This research paper fills in the absence of studies that examine which category of Islamic bank financing – debt-based or equity-based financing - is more procyclical.

Purpose – This paper aims to analyze the effect of financial depth in Islamic banks on income inequality in 33 provinces in Indonesia. Methodology – We use data for the period 2010-2018 from 33 provinces in Indonesia which are estimated using panel data to develop spatial panel data model. The dependent variable is income inequality, while the variable independent are Islamic regional financial depth, economic growth, human capital, and government expenditure.Findings – This research finds that Islamic Regional Financial Depth (FDS) has a positive and statistically significant direct effect on income inequality represented by Gini index. It means that an increase in the FDS will also cause an increase in the level of Gini index. In addition, the indirect effect of FDS on income inequality is also positive and significant, indicating that the ratio of financing to GRDP has a spillover effect on connected regions. Implications – This research recommends policymaker to expand the business of Islamic banking by financing the small medium enterprises and concern on the promotion of Islamic banking in the regional level. Originality – This study is potentially to contribute and be the early work which employs spatial analysis in the area of Islamic economics and finance. In addition, this study examines the impact of financial depth in Islamic bank on income inequality which is rarely discussed. Hence, this study presents relatively new information for policy makers, practitioners and researchers.

Purpose: The main purpose of this study is to investigate the effect of the brand logo on brand image, with the mediation of brand personality and brand familiarity.Methodology: Questionnaires were distributed online to users of Bank Syariah Indonesia throughout Indonesia and obtained data from 294 respondents that can be processed. The data processing method used was structural equation modeling.Findings: This study found an indirect positive influence between brand logo and brand image with the mediation of brand personality and brand familiarity. Although the Bank Syariah Indonesia brand logo has a positive effect on halal brand personality, halal brand personality does not mediate the relationship between the brand logo and the brand image of Bank Syariah Indonesia.Originality: This originality offered by this research is by comparing the constructs of brand personality with halal brand personality.Research limitations: Limitations of this research include uneven distribution of respondents and limited previous literature regarding halal brand personality.Practical implications: The findings of this research can provide insights for Islamic banks, especially Bank Syariah Indonesia, to develop their communication and branding strategies.

Although mobile banking is one of the online banking services that makes it easy for consumers to conduct financial transactions, research on Islamic mobile banking in developing countries with a Muslim majority is still relatively insignificant. Not all Muslim consumers are interested in or intend to use conventional mobile banking services. Therefore, the aim of this study is to integrate the TAM theory and the construct of religiosity to examine consumer intentions to use Islamic mobile banking services. Data were collected through a survey questionnaire of 482 Muslim consumers in Indonesia using convenience sampling techniques. The collected data were then analyzed using structural equation modeling (SEM-AMOS). The results of this study showed that perceived ease of use cannot influence the perceived usefulness and attitudes of variables towards Islamic mobile banking. While perceived usefulness has been proven to influence attitudes toward Islamic mobile banking and may be the largest contributor to increased intentions to use Islamic mobile banking. On the other hand, this study reveals that the influence of religiosity can positively and significantly foster consumer sensibility and intention to use Islamic mobile banking.

The purpose of this article is to identify the Moroccan client’s choosing criteria for an Islamic bank by the innovation diffusion theory perspective. Through this exploratory study, we aim to detect the criteria taken into consideration by an Islamic bank client. Our study allowed us to detect the most influential criteria that an Islamic bank may use to set up actions and strategies to target easily potential clients who are interested in the bank Islamic products. To answer the set problem, a survey was conducted on a random sample using the google Forms platform. Our final sample consisted of 180 questionnaires, which were analyzed using the PLS method. The results show that relative advantage, compatibility and observability are the determinants that influence the potential client decision to choose an Islamic bank. The results also reveal that the client gender has an impact on his uncertainty towards the bank products. Keywords: Islamic bank; Selection criteria; Innovation diffusion theory; Morocco

Purpose – The aim of this research study is to determine and compare the service quality of conventional and Islamic banks in Turkey. Design/Methodology/Approach – Stratified sampling method was used to select the sample of respondents for the survey. The data collection phase was carried out online via Google forms and data obtained from 524 participants was used for the analysis. A revised SERVQUAL scale for the banking sector was employed in the research. Findings and implications – The study found service quality expectations of bank customers to be very high, with neither bank type satisfying the expectations of their customers. While conventional banks satisfied 81.2% of their customer expectations, with that proportion falling to 77.8% in the case of Islamic banks, the perception of service quality by customers was found to be higher for conventional banks than for Islamic banks. Especially in the last 20 years, Islamic banking in Turkey has developed at an extremely fast pace. Turkey has become a highly attractive market, particularly for foreign banks focused on Islamic banking. However, although Turkey is a Muslim country, there is not a high preference for Islamic banking. The most important reason behind this is the quality of service offered by the country’s Islamic banks to their customers. This study has demonstrated that the service quality of Turkish banks is unsatisfactory and that improvements to service quality especially by Islamic banks are required, more so than for conventional banks. This research study provides companies seeking to enter the Turkish banking sector with the necessary steps to satisfy the service quality expectations of Turkish customers. Limitations – The main limitations of this study are related to the timeframe and data collection. As service perception changes over time, the service quality of banks can be better evaluated through long-term data collection. This research focused on Turkish banks only, so its results cannot be generalized outside Turkey. Originality – Although certain studies have investigated the service quality of banks in Turkey, no study in the literature has compared the quality of service of conventional and Islamic banks., Svrha – Cilj je istraživanja utvrditi i usporediti kvalitetu usluge konvencionalnih i islamskih banaka u Turskoj. Metodološki pristup – Pri odabiru uzorka korištena je metoda stratificiranog uzorkovanja. U istraživanju je uporabljena za bankarski sektor prilagođena SERVQUAL ljestvica. Prikupljanje podataka provedeno je online putem Google obrasca, a za analizu su korišteni podatci prikupljeni od 524 ispitanika. Rezultati i implikacije – Uočeno je da su očekivanja kvalitete usluge korisnika usluga banke vrlo visoka te da obje vrste banaka ne ispunjavaju njihova očekivanja. Dok su konvencionalne banke uspjele zadovoljiti 81.2 % očekivanja korisnika, kod islamskih banaka taj omjer pada na 77.8 %. Utvrđeno je i da je percepcija kvalitete usluge korisnika viša kod konvencionalnih nego kod islamskih banaka. U posljednjih 20 godina u Turskoj se islamsko bankarstvo vrlo brzo razvija. Turska je postala vrlo atraktivno tržište, posebno za inozemne banke usmjerene na islamsko bankarstvo. No, iako je Turska muslimanska zemlja, preferiranje islamskih banaka nije visoko. Najvažniji razlog za takvu situaciju temelji se na kvaliteti usluge koju islamske banke nude svojim korisnicima. Istraživanje je pokazalo da kvaliteta usluge banaka u Turskoj nije zadovoljavajuća, a kvalitetu usluge više od konvencionalnih banaka posebno bi trebale poboljšati islamske banke. Istraživanje posebno pomaže poduzećima koja razmišljaju o ulasku na tursko bankarsko tržište da bi se vidjelo što je potrebno poduzeti za zadovoljavanje očekivanja turskih korisnika od kvalitete usluge. Ograničenja – Glavna ograničenja istraživanja vezana su uz vremenski okvir i prikupljanje podataka. Percepcija usluge mijenja se s vremenom, tako da se kvaliteta usluge banaka može bolje ocijeniti dugotrajnijim prikupljanjem podataka. Istraživanje je ograničeno na turske banke pa su i rezultati procijenjeni samo za Tursku. Doprinos – Iako postoje prethodna istraživanja o kvaliteti usluge banaka u Turskoj, ne postoji istraživanje koje uspoređuje kvalitetu usluge konvencionalnih i islamskih banaka.

Islamic bank is a bank that collects funds from the public by using system profit sharing for every profit it gets and in carrying out its activities in accordance with Islamic law. Remembering that in Indonesia most of the population is Muslim, therefore they need a bank that works in accordance with Islamic law. Considering the number of percentages of Islamic banks in Indonesia are still small and cannot yet dominate the market share, therefore this research is expected to find out whether the merging of 3 Islamic banks (BRIS, BSM and BNIS) able to control market share or not. To see the synergy resulting from this merger is used methods Discounted Cash Flow - Free Cash Flow to Equity and Relative Valuation - Price to Book Ratio. The data used are the financial statements of each bank from 2014 to 2019 which are available on the Indonesia Stock Exchange (IDX) or the websites of each bank.

Sociologically, the existence of Islamic banks in Indonesia had developed since the early 1990 through a long time of workshops and bureaucratic processes until Bank Muamalat Indonesia was established as the first Islamic bank in Indonesia. The existence of Bank Muamalat Indonesia, as the first Islamic bank, has a mission to present an Islamic banking institution that is free from the interest system by replacing its operational system through Islamic principles. Normatively, the profit sharing concept used to an operational system for Islamic banks in Indonesia which has been regulated in Article 1 Number 12 of the Law of Banking Number 7 of 1992, then the dual banking system in Article 9 of the Law of Banking Number 10 of 1998, and the latest. is the application of Islamic principles in the Law of Islamic Bank Number 21 of 2008 through using six patterns: first, the deposit through the wadi'ah contract; second, borrowing through qard and qardh al-hasan contracts; third, the profit sharing scheme through mudharabah and syirkah contracts; fourth, buying and selling through murabahah, salam, and istishna' contracts; fifth, the rental scheme through ijarah and ijarah muntahiya bi al-tamlik contracts; and sixth, the services through wakalah, kafalah, hiwalah, ujr, sharf, and rahn contracts. The result of this study shows that the changes of Islamic banking regulations have implications to the dynamics of Islamic contract implementation in Islamic banking financial products in Indonesia. Abstrak: Secara sosiologis eksistensi bank syariah di Indonesia sudah berkembang sejak awal tahun 1990-an melalui serangkaian proses panjang lokakarya dan birokrasi sehingga berdiri Bank Muamalat Indonesia sebagai bank syariah pertama di Indonesia. Eksistensi Bank Muamalat Indonesia sebagai bank syariah memiliki misi untuk menghadirkan lembaga perbankan syariah yang bebas dari sistem bunga dengan mengganti sistem opersionalnya dengan prinsip-prinsip Islam. Penggunaan konsep bagi hasil sebagai sistem operasional bank syariah di Indonesia secara normatif telah diatur dalam Undang-Undang Nomor 7 Tahun 1992 tentang Perbankan pada Pasal 1 angka 12, kemudian dual banking system dalam Pasal 9 Undang-Undang Nomor 10 Tahun 1998 dan yang terkahir adalah penerapan prinsip syariah dalam Undang-Undang Nomor 21 Tahun 2008 dengan menggunakan enam pola: pertama, pola titipan melalui akad wadi’ah ; kedua, pola pinjaman, melalui akad qard dan qardh al-hasan ; ketiga, pola bagi hasil melalui akad mudharabah dan syirkah ; keempat, pola jual beli melalui akad murabahah, salam, dan istishna’ ; kelima, pola sewa melalui akad ijarah dan ijarah muntahiya bi al-tamlik ; keenam, pola jasa melalui akad wakalah, kafalah, hiwalah, ujr, sharf, dan rahn . Hasil penelitian ini menunjukan bahwa perubahan regulasi perbankan syariah telah berimpli­kasi terhadap dinamika penerapan akad syariah dalam produk keuangan bank syariah di Indonesia.

Purpose – This study aims to analyze the non-performance financing determinant of Islamic Banking (IB) in Indonesia through spatial analysis. These determinants consist of macroeconomic and microeconomic variables Methodology – Samples in this research were selected using the purposive sampling technique with the criteria of Islamic banks registered in the Financial Services Authority (OJK) that released quarterly data reports and financial reports during 2015-2020. There are 7 Islamic banks that met the criteria. Findings – Results showed that the ROA, Inflation, GDP, and BI Rate simultaneously affected the NPF level, while FDR and CAR do not affect the NPF level of Islamic commercial banks. Meanwhile, partially FDR, BOPO, CAR, ROA, Inflation, GDP, and BI Rate affect the NPF level. In addition, the spatial analysis showed that based on the global distribution, there is a significant spatial effect through the geographical location between one bank and other. Originality – This research provides empirical data related to the determinants of non-performing financing, using the spatial analysis approach. Moreover, this research also uses the most updated data, Islamic and conventional banks during 2015-2020 Research limitations – Related to the samples of Islamic banks, this research only investigates those registered in OJK, not all Islamic banks in Indonesia.

Purpose: This study aims to analyze the effect of service quality on loyalty mediated by customer satisfaction and trust. A total of 215 Islamic bank customers in the study area were sampled accidently. Theoretical framework: Theoretically, this study contributes to the gaps in the literature, especially those related to the effect of SQ on Islamic banking loyalty which is mediated by satisfaction and trust simultaneously in one research title. Practically, encouraging Islamic banking management to design SQ programs that integrate the value of satisfaction and trust in the same cultural background to gain customer support and loyalty Design/methodology/approach: There are four latent variables observed; service quality, satisfaction, trust, and loyalty with the number of indicators respectively six, four, three, and four. Data collection was carried out through interviews using a questionnaire. Data were analyzed using Smart-PLS 3.0. The validity test uses factor loading and AVE ( Average Variance Extracted ), the reliability test uses Composite reliability (CR) and Cronbach's Alpha (CA), the direct effect test uses the path analysis matrix, while the indirect effect test uses the specific indirect effects matrix. Findings: The volume of research has been increasing over the past nineteen years, although there are only a few authors, institutions and reference journals contributing to the topic’s consolidation and the countries conducting the most joint research in co- authoring for the largest volume of publications, authors and impact journals. Research, Practical & Social implications: This study concludes that customer loyalty of Islamic banks in Indonesia can be optimized through service quality which is mediated by customer satisfaction and trust. Originality/value: The results of the analysis show that the factor loading value is> 0.6 and the AVE value is> 0.5 which means that the data is valid. CR and CA values > 0.6 which means the data is reliable. The direct effect test shows that service quality, satisfaction and trust have a positive and significant effect (p-value, Este estudio tiene como objetivo analizar el efecto de la calidad del servicio en la lealtad mediante la satisfacción y la confianza del cliente. Se seleccionó accidentalmente a 215 clientes de bancos islámicos en la zona de estudio. Se observaron cuatro variables latentes; calidad del servicio, satisfacción, confianza y lealtad con un número de indicadores respectivamente seis, cuatro, tres y cuatro. La recolección de datos se llevó a cabo a través de entrevistas mediante un cuestionario. Los datos se analizaron utilizando Smart-PLS 3.0. La prueba de validez utiliza la carga de factor y AVE (Varianza Extrahida Promedio), la prueba de confiabilidad utiliza la confiabilidad compuesta (CR) y Alpha de Cronbach (CA), la prueba de efecto directo utiliza la matriz de análisis de trayectoria, mientras que la prueba de efecto indirecto utiliza la matriz de efectos indirectos específicos. Los resultados del análisis muestran que el valor de carga del factor es> 0.6 y el valor AVE es> 0.5 lo que significa que los datos son válidos. Los valores CR y CA> 0.6 lo que significa que los datos son fiables. La prueba de efecto directo muestra que la calidad del servicio, la satisfacción y la confianza tienen un efecto positivo y significativo (p-valor, Este estudo tem como objetivo analisar o efeito da qualidade do serviço na lealdade mediada pela satisfação e confiança do cliente. Foram amostrados aleatoriamente 215 clientes de bancos islâmicos na área de estudo. São observadas quatro variáveis latentes; qualidade do serviço, satisfação, confiança e lealdade, com respectivamente seis, quatro, três e quatro indicadores. A coleta de dados foi realizada através de entrevistas usando um questionário. Os dados foram analisados usando o Smart-PLS 3.0. O teste de validade usa o fator de carregamento e AVE (Variância Média Extraída), o teste de confiabilidade usa a confiabilidade composta (CR) e o Alpha de Cronbach (CA), o teste de efeito direto usa a matriz de análise de caminho, enquanto o teste de efeito indireto usa a matriz de efeitos indiretos específicos. Os resultados da análise mostram que o valor de carregamento do fator é> 0,6 e o valor AVE é> 0,5, o que significa que os dados são válidos. Os valores CR e CA> 0,6, o que significa que os dados são confiáveis. O teste de efeito direto mostra que a qualidade do serviço, a satisfação e a confiança têm um efeito positivo e significativo (p-valor

Purpose: The aim of this study is to review relevant articles on the problem of adverse selection and moral hazard in profit-sharing contracts in Islamic Banks. Adverse selection and moral hazard problems are problems that occur in profit-sharing contracts, so they impact the low porti on of this contract financing compared to margin-based and fee-based contracts. Theoretical framework: The profit sharing contract in an Islamic bank has two potential problems, namely adverse selection and moral hazard that arise due to asymmetric information. Asymmetric information can occur due to limited information owned by Islamic banks as owners of funds (shahibul maal) regarding the business to be run by customers (mudharib). This asymmetric information mainly causes the agency problem. If an agent is negligent in making decisions with negative consequences and does not want to take responsibility for his actions, this can be classified as a moral hazard. Moral hazard can be in the form of self-interest, side effects, fraud, opportunism, and the behaviour of agents who commit willful mistakes, negligence and breach of contract. Meanwhile, adverse selection arises when the principal cannot observe the agent's characteristics because of asymmetric information before the contract is signed. Design/methodology/approach: The study uses a qualitative approach by reviewing previous articles relevant to the discussion. The study is aligned with the practices that occur in profit-sharing contracts. Furthermore, discussions are deepened through forum group discussions with experts and practitioners in Islamic banks. Findings: The results show that the conflicts in profit-sharing contracts include principal-agent conflicts and principal-principal conflicts due to adverse selection and moral hazards. The study results reveal that signalling and screening measures can be applied to overcome adverse selection problems while monitoring actions and switching to debt contracts can overcome moral hazard problems. Research, Practical & Social implication: The study has implications for Islamic banks to draw up a clear and complete profit-sharing contract with the mudharib to reduce the moral hazard committed by the mudharib. In this case, Islamic banks can also ask the mudharib to submit comprehensive financial reports regarding their financial performance. Islamic banks must also pay attention to signalling and screening efforts to prevent adverse selection. Originality/value: The value of the study provides a new literacy regarding the potential for agency conflict in the form of moral hazard and adverse selection that will be faced by Islamic banks when applying profit-sharing contracts with other parties as managers (mudharib)., Propósito: Este estudio tiene como objetivo revisar artículos relevantes sobre el problema de la selección adversa y el riesgo moral en los contratos de participación en las ganancias en los bancos islámicos. Los problemas de selección adversa y riesgo moral son problemas que ocurren en los contratos de reparto de utilidades, por lo que impactan en la parte baja de la financiación de este contrato en comparación con los contratos basados ​​en el margen y en los honorarios. Marco teórico: la información asimétrica puede ocurrir debido a la información limitada que poseen los bancos islámicos como propietarios de fondos (shahibul maal) con respecto al negocio que administrarán los clientes (mudharib). Esta información asimétrica causa principalmente el problema de agencia. Si un agente es negligente al tomar decisiones con consecuencias negativas y no quiere asumir la responsabilidad de sus acciones, esto puede clasificarse como riesgo moral. El riesgo moral puede presentarse en forma de interés propio, efectos secundarios, fraude, oportunismo y el comportamiento de agentes que cometen errores intencionales, negligencia e incumplimiento de contrato. Por su parte, la selección adversa surge cuando el principal no puede observar las características del agente debido a información asimétrica antes de la firma del contrato. Diseño: Este estudio utiliza un enfoque cualitativo mediante la revisión de artículos anteriores relevantes para la discusión. El estudio está alineado con las prácticas que se dan en los contratos de reparto de utilidades. Además, las discusiones se profundizan a través de discusiones grupales en foros con expertos y profesionales en bancos islámicos. Hallazgos: Los resultados muestran que los conflictos en los contratos de reparto de utilidades incluyen conflictos principal-agente y principal-principal por selección adversa y riesgos morales. Los resultados del estudio revelan que se pueden aplicar medidas de señalización y selección para superar los problemas de selección adversa, mientras que las acciones de seguimiento y el cambio a contratos de deuda pueden superar los problemas de riesgo moral. Originalidad: la mayoría de las investigaciones anteriores han discutido las ventajas de los contratos de reparto de utilidades y su impacto en el desempeño de los bancos islámicos. Este estudio proporciona un nuevo conocimiento sobre el potencial de conflicto de agencia en forma de riesgo moral y selección adversa que enfrentarán los bancos islámicos cuando apliquen contratos de participación en las ganancias con otras partes como administradores (mudharib)., Objetivo: Este estudo tem como objetivo revisar artigos relevantes sobre o problema de seleção adversa e risco moral em contratos de participação nos lucros em Bancos Islâmicos. Problemas de seleção adversa e risco moral são problemas que ocorrem em contratos de participação nos lucros, portanto, impactam a parte baixa desse contrato de financiamento em comparação com contratos baseados em margem e baseados em taxas. Referencial Teórico: A informação assimétrica pode ocorrer devido à informação limitada detida pelos bancos islâmicos como detentores de fundos (shahibul maal) sobre o negócio a ser gerido pelos clientes (mudharib). Essa informação assimétrica causa principalmente o problema de agência. Se um agente é negligente na tomada de decisões com consequências negativas e não quer assumir a responsabilidade por seus atos, isso pode ser classificado como um risco moral. O risco moral pode assumir a forma de interesse próprio, efeitos colaterais, fraude, oportunismo e comportamento de agentes que cometem erros deliberados, negligência e quebra de contrato. Já a seleção adversa surge quando o principal não consegue observar as características do agente devido à assimetria de informação antes da assinatura do contrato. Delineamento: Este estudo utiliza uma abordagem qualitativa, revisando artigos anteriores relevantes para a discussão. O estudo está alinhado com as práticas que ocorrem nos contratos de participação nos lucros. Além disso, as discussões são aprofundadas por meio de discussões em grupo com especialistas e profissionais em bancos islâmicos. Resultados: Os resultados mostram que os conflitos nos contratos de participação nos lucros incluem conflitos principal-agente e principal-principal devido à seleção adversa e riscos morais. Os resultados do estudo revelam que medidas de sinalização e triagem podem ser aplicadas para superar problemas de seleção adversa, enquanto ações de monitoramento e mudança para contratos de dívida podem superar problemas de risco moral. Originalidade: A maioria das pesquisas anteriores discutiu as vantagens dos contratos de participação nos lucros e seu impacto no desempenho dos bancos islâmicos. Este estudo fornece uma nova alfabetização sobre o potencial de conflito de agência na forma de risco moral e seleção adversa que serão enfrentados pelos bancos islâmicos ao aplicar contratos de participação nos lucros com outras partes como gerentes (mudharib).

Policymakers are usually getting worried due to the continuous increases in non-performing loans, and the situation is expected to worsen in this era of COVID-19 pandemic. It is well established that NPL is one of the key indicators of the success and stability of the banking sector. However, very little attention has been paid regarding this issue in an emerging county like Bangladesh. Therefore, the purpose of this study is to examine and evaluate the factors influencing the non-performing loans (NPLs) of conventional and Islamic banks. We performed the analysis by employing annual panel dataset of top twenty-six conventional banks and four Islamic banks in Bangladesh over the period 2014 to 2018. The Pooled Ordinary Least Square (OLS) approach is employed to investigate the impact of credit growth, loans to deposit ratio, capitalization, inefficiency, size, diversification and economic growth on non-performing loans (NPLs). The empirical results reveal strong evidence that inefficiency has a significantly positive effect on NPLs, whereas loan to deposit ratio has a negative effect on NPLs. The results suggest policymakers need to lessen bank inefficiency with a view of reducing NPL, which ultimately will enrich shareholder’s value.

The aim of this study is to analyze the influence of the non-performing financing (NPF), financing to deposit ratio (FDR), operational efficiency ratio (OER), and firm size (SIZE) on return on assets (ROA). The object of the research is the Islamic bank in Indonesia and the Islamic bank in Malaysia for the period of 2010–2015. Another aim of this research is to determine if there are differences in the impact of FDR, NPF, OER and firm size on ROA between the Islamic bank in Indonesia and the Islamic bank in Malaysia. The findings show that not all studied independent variables affect the ROA of the Indonesian Islamic Bank and the Malaysian Islamic bank. OER has a negative and significant effect on the Indonesian Islamic Bank’s ROA, while FDR and size have a positive and significant influence on the Indonesian Islamic Bank’s ROA. In the Islamic bank of Malaysia, NPF affects ROA positively, while OER affects ROA negatively. In the Indonesian Islamic bank, independent variables that influence ROA are FDR, OER, and SIZE. In Malaysian Islamic bank, only OER influences ROA significantly. Based on the Chow test, one can conclude that there is a significant difference between the Indonesian Islamic bank and the Malaysian Islamic bank. Regarding operational costs, banks should pay more attention to validation of the costs to be incurred, so there is no need to spend unnecessary costs.

This study was conducted to examine the effect of the size of the Sharia Supervisory Board (DPS), the number of DPS meetings, DPS education, and duality in SSB positions on Islamic Social Reporting using the control variable of company size and profitability. The object of the study consisted of 13 Sharia Commercial Banks and 21 Sharia Business Units recorded in the Financial Services Authority in the 2015 2017 period. Content Analysis is used to identify themes and items in the bank's annual report. Multiple linear regression analysis is a method used in the data processing. This study proves the variable number of SSB meetings, duality in SSB positions, SSB size and profitability significantly influence ISR Islamic Social Reporting. Meanwhile, the variable number of SSB and SSB education was found to have no significant effect on Islamic Social Reporting.Key words : Sharia Supervisory Board, Islamic Bank, Islamic Social Reporting

As a business institution, the objectives of Islamic banking is profitability. The profit can be achieved if Islamic banking distributes financing both with the principle of buying and selling, profit sharing or services. The focus of the study was on financing with the principle of profit sharing (Mudharabah and Musyarakah). Profit sharing has been studied as a variable that can increase profitability, but there are no definite conclusions. Thus it is necessary to study whether the actual financing of profit sharing affects the level of profitability directly or through certain business categories. The type of research is causality research with a quantitative approach. The population is Sharia Commercial Banks and Sharia Business Units in the period of January 2016 to December 2018. The data analysis uses Partial Least Square (PLS). The results shows that financing with profit sharing principles is proven to directly have an influence on profitability but in a negative coefficient. This study also shows that the higher the profit sharing financing, the lower the level of profitability. However, when the revenue sharing is channeled through SMEs and non-SMEs, the results become positive and significant to profitability

In modern conditions of implementation Islamic model of banking, the issues of increasing efficiency of its activities and ensuring the long-term stability of Islamic banks come to the fore. Article analyzes the activities of Islamic banks in the post-crisis period, both in the global Islamic banking sector as a whole, and in the context of individual countries in which Islamic banks are predominantly or significantly represented, as well as financial risks that pose a threat of losses for Islamic banks. It has been concluded that the Islamic financial system is becoming one of the most important components of the international financial system, and Islamic banks within the global financial system are becoming more recognized and competitive, as they demonstrate a sufficiently high efficiency and stability of activity, a positive trend of development. Analysis found that Islamic banking has demonstrated its reliability and stability in the post-crisis period and continues to be a viable and effective mechanism of financial intermediation in the conditions of global financial system instability. The differences in the functioning and performance of Islamic banks in different countries within a single consolidated Islamic banking system have been revealed, a comparative analysis effectiveness of banking sectors a number of Muslim countries has been given, the directions of development of Islamic banking in them have been shown. Conclusions have been drawn on the need for Islamic banks to introduce effective mechanisms for monitoring and managing financial and investment risks in order to increase their ability to withstand adverse external factors, since in the future, despite the positive trends in the activities of Islamic banks, there are potential financial risks due to the growth of their current costs associated with the possibility of potential deterioration in the quality of assets and reduction in the level of profit.

This research focuses on the problem whether there any differences in the average between social, personal and psychological factors on the decisions of students of Universitas Islam Negeri (UIN) Palembang and Universitas Muhammadyah Palembang in purchasing Islamic bank products or conventional banks. The model used for this study is comparative analysis of two free samples (Independent Sample T Test), the data is processed and tested using the SPSS Version 19. The results show that the value of t count on social factors is -2.304 and the significance value for social factors is 0.023, it can be concluded that there are differences in social factors between students of UIN Palembang and Universitas Muhammadiyah Palembang in making purchasing decisions for Islamic bank products or conventional banks. The value of t count on personal factors is -2.912 and the significance value for personal factors is 0.004, it can be concluded that there are personal factor differences between students of UIN Palembang and Universitas Muhammadiyah Palembang in making purchasing decisions for Islamic bank products or conventional banks. The value of t count on psychological factors is -3,187 and the significance value for psychological factors is 0,002, it can be concluded that there are psychological factors differences between students of UIN Palembang and Universitas Muhammadiyah Palembang in making purchasing decisions for Islamic bank products or conventional banks. The value of t count for the purchasing decision factor is -4,538 and the significance value for the purchasing decision factor is 0,000, it can be concluded that there are differences in purchasing decision factors between students of UIN Palembang and Universitas Muhammadiyah Palembang in making purchasing decisions for Islamic bank products or conventional banks.

Purpose– The basic purpose of this paper is to analyze the debt financing of small and medium-sized enterprises (SMEs) in Pakistan through different modes from conventional and non-conventional (Islamic) institutes. Design/Methodology/Approach– Data is publicly available on databases and websites about debt financing of small and medium-sized enterprises (SMEs) of Pakistan, thus data is collected from these databases and websites in the form of articles and handbooks about Pakistan. Findings– It is found from the analysis that a lot of financing choices and modes are available for small and medium-sized enterprises (SMEs) in Pakistan. These modes are provided by both conventional and non-conventional (Islamic) financial institutes. All the debt modes are discussed in the paper. In addition, there are some drawbacks of debt financing that arises from conventional and non-conventional (Islamic) financial institutes, which alleviate small and medium-sized enterprises (SMEs) from adopting these modes Research Limitations/Implications –Some financial institutes, especially banks, lack knowledge and information about small and medium-sized enterprises (SMEs) in Pakistan. Banks could lessen it by acting as a mediator for small and medium-sized enterprises (SMEs). Originality/Value– This review paper's main contribution is to analyze the contribution of financial institutes in debt financing small and medium-sized enterprises (SMEs) in Pakistan. Paper discusses all the modes available for the small and medium-sized enterprises (SMEs) in Pakistan thoroughly through conventional and non-conventional (Islamic) financial institutes.

By utilizing the Fixed effect and GMM estimators for a sample of 57 Islamic banks and 102 conventional banks from 10 countries for the period 2002–2018, we examine the effect of the audit committees' and Sharia committees' effectiveness on the bank risk-taking behavior and its transmission mechanisms. The results reveal that an audit committee's independence, number of meetings, and financial expertise negatively affect conventional banks' risk-taking, suggesting that the high effectiveness of their audit committees may constrain banks' risk-taking activities. However, no such relationship is evident or observed case of Islamic banks. Instead, with a different transmission mechanism, the proportion of female members and the financial expertise in the Sharia committees negatively affect risk-taking, but the Sharia committee size positively affects risk-taking in Sharia banks. These results indicate that a Sharia committee's high effectiveness can constrain risk-taking behaviors in Islamic banks., Sharia committee; Audit committee; Bank risk-taking.

This study is essential because Islamic banks have a higher NPF level than conventional banks and examine whether macroeconomic indicators (macro-risk), internal factors of banking (GCG-earnings-capital) risk profile correlate term Indonesian Islamic banking. The method used is the correlation analysis involving four macro-risk variables (Forex; BI rate; Inflation and GDP), three GEC variables (GCG; ROA, and CAR), and two risk profiles (FDR and NPF). The number of samples is the ten largest Indonesia sharia commercial banks with the 2011-2018 periods. This research finds that macroeconomic indicators positively correlate to non-performing financing (NPF). The GEC positively correlates to NPF and FDR; GEC is negatively correlated to macro-risk indicators. However, some indicators are negatively correlated, such as GDP-corporate governance, Forex-profitability, GDP-efficiency, BI rate-capital, and profitability-NPF. The study proposed managerial implications to understand the relationship between macroeconomic, internal factors, and risk profile in Islamic bank lending.JEL: D02; G21, G32How to Cite:Santosa, P. W., Setianingrum, A., & Huda, N. (2020). The Relationship of Macro-risk Indicators, Internal Factors and Risk Profile of Islamic Banking in Indonesia. Etikonomi: Jurnal Ekonomi, 19(2), xx – xx. https://doi.org/10.15408/etk.v19i2.15528.

This study aims to determine the implementation of Islamic bank social values as they should have been implemented . This study uses the Maqashid Syariah Index with three main social indicators, namely education, justice, and social welfare. The object of this research are three Islamic banks in Jordan (Jordan Islamic Bank, Safwa, and International Islamic Arab Bank). The results showed that all the banks have a low Maqashid Syariah Index for all indicators, which meant that the practice of implementing the social values of Islamic banks in Jordan are not close to what people have expected especially for indicators of justice and social welfare. In the future, Islamic banks need to increase social contributions, especially on indicators of justice and social welfare.

This research aims to examine the effect of the characteristics of the board on the Maqâshid Shariah Index (MSI) performance of Indonesian Islamic banks, using panel data regression. Independent variables, namely the characteristics of the board of commissioners, board of directors, and shariah supervisory board are related to board internal ownership, board expertise, board independence, cross-membership board, and board tenure with size and growth as controlling variables, while the dependent variable is Maqâshid Shariah Performance in Islamic Banks. The samples of this study include 12 Islamic banks in Indonesia, which regularly publish their annual reports and management for the period 2009-2017. The results from both models, with and without control variables, show that board ownership (commissioner and director), board cross-membership (commissioner and Shariah supervisor) and Shariah supervisor expertise do not have impact to MSI. Moreover, the results from model without control variables show that commissioner expertise has positive impact to MSI, while board tenure (commissioner and director) and commissioner independence do have negative impact to MSI. These results provide recommendations for the Islamic banking industry, so that it can be applied optimally to achieve the main objectives of the maqâshid Shari’ah.

There are a considerable number of studies on the service quality dimensions of banking industries, but little researches were carried out on the product quality dimensions, and this led to the minimal understanding of the impact of product quality dimensions from the customers’ standpoints, This research sought to identify the impact Islamic banking products (Murabahah and Mudarabah) dimensions on customer satisfaction. The study surveyed Islamic bank customers (users of the Islamic bank’s products in Nigeria) using questionnaires to seek responses, a convenient sampling technique was conducted to reach out to customers, and the use of PLS-SEM 3 was employed for the analysis of the data. The result model shows an R 2 value of 0.414 (for Murabahah), which means 41% of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Murabahah, and R 2 value of 0.309 (for Mudarabah) which means 31% of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Mudarabah. The values of R 2 for Murabahah and Mudarabah show that the constructs were moderate in determining the satisfaction level of customers as they produced 0.414 and 0.309 respectively.

This research aims to examine bank specific, market and regulatory determinants of leverage and capital structure based on a panel data of publicly listed Islamic banks in 12 countries over the period 2008-2017. Apart from testing standard corporate finance parameters using both OLS and M-Estimators, this study adds several idiosyncratic and regulatory environment related determinants of leverage unique to Islamic banks. The significance of potential determinants is tested for market and book leverage as well as newly introduced ‘Islamic banking leverage’. Overall, the results show that Islamic banks with higher growth opportunities, tangibility, low profitability and low risk are likely to have a high leverage. Similarly, the findings suggest important role played by debt market conditions, share of investment accounts and regulatory environment in such decisions, providing an evidence of the significance of trade-off and pecking order theory in capital structure in Islamic banks. The results are more robust for market and Islamic banking leverage, rather than book leverage. The findings offer insights to regulators, standard setters and especially Islamic banks regarding parameters to strengthen their capital, enhance resilience and thus contribute to the stability of relevant financial. This paper is among the few extant studies that focus on listed Islamic banks and tests determinants based on stock market data.

This paper uses the value-added intellectual coefficient (VAIC) to assess the performance of Islamic banks (IBs) by measuring return on assets (ROA) and income from financing Islamic banks (IFIB). The model tests the relationship between intellectual capital (IC) and IB performance in various regions using a panel data regression methodology with a fixed-effects model and IB financial data for the period 2009–2019 from the BankScope database. The empirical results show that VAIC has a significant positive effect on IB performance using both ROA and IFIB proxies. Furthermore, human capital and capital employed efficiency have a positive relationship with ROA and IFIB, while structural capital efficiency has a relationship with ROA, but is not related to IFIB. The results can be used by companies in strategic decision making related to IC, especially human capital, structural capital, and employed capital.

This study was conducted to analyze the soundness comparison of Islamic banks in Indonesia and Malaysia to measure the readiness of Islamic banks in both countries In facing of financial integration in the ASEAN Economic Community (AEC) by 2020. The study uses data of annual financial statements in 10 Islamic banks in each country in period 2012-2014 using CAMEL Method. The results of this study indicate that Islamic banks in Malaysia are relatively better prepared compared to Islamic banks in Indonesia. Islamic Banks in Malaysia tend to be more soundness than Islamic Banks in Indonesia during periods of 2012 to 2014. The implication based on finding indicated that the Islamic banks in Indonesia need improvement in the product diversification both on financing or funding to compete in ASEAN Region.DOI: 10.15408/etk.v17i1.6711

Penelitian ini bertujuan untuk mengetahui pengaruh tingkat religiusitas dan pengetahuan terhadap minat menjadi nasabah di bank syariah pada mahasiswa Fakultas Ekonomi Dan Bisnis Islam Universitas Suryakancana. Penelitian ini menggunakan pendekatan kuantitatif, dengan metode deskriptif dan asosiatif. Pengambilan sampel menggunakan metode random sampling dengan total sebanyak 86 menggunakan analisis regresi linier berganda. Hasil penelitian menyatakan bahwa Tingkat Religiusitas berpengaruh secara signifikan terhadap Minat Menjadi Nasabah, dengan hasil uji T yang menunjukkan thitung > ttabel yaitu 2,099 > 1,992 dengan nilai signifikansi sebesar 0,039 < 0,05. Dan Pengetahuan berpengaruh secara signifikan terhadap Minat Menjadi Nasabah, dengan hasil uji T yang menunjukkan thitung > ttabel yaitu 8,219 > 1,992 dengan nilai signifikansi 0,000< 0,05. Berdasarkan hasil penelitian maka dapat disimpulkan bahwa variabel tingkat religiusitas dan pengetahuan berpengaruh signifikan dan berarah positif terhadap minat menjadi nasabah di Bank Syariah pada mahasiswa Fakultas Ekonomi Dan Bisnis Islam Universitas Suryakancana Cianjur. Hal ini dibuktikan dengan hasil pengujian parsial (Uji F) pada tingkat religiusitas dan pengetahuan diperoleh nilai signifikan sebesar 0,000 dan nilai Fhitung sebesar 56,447. Hasil tersebut menunjukan nilai signifikan sebesar 0,000 < 0,05 dan Fhitung> Ftabel yaitu 56,447 > 3,105 dengan demikian Ha3 diterima dan Ho3 ditolak. ABSTRACTThis study aims to determine the effect of the level of religiosity and knowledge on the interest in becoming a customer in a islamic bank in students of the Islamic Economics and Business Faculty, Suryakancana University. This study uses a quantitative approach, descriptive and associative methods. Sampling using random sampling method with a total of 86 using multiple linear regression analysis. The results of the study stated that the level of religiosity had a significant effect on Interest in Becoming a Customer, with the results of the T test showing t count > t table, namely 2,099 > 1,992 with a significance value of 0.039 < 0.05. And Knowledge has a significant effect on Interest in Becoming a Customer, with the results of the T test showing tcount > ttable, namely 8.219 > 1.992 with a significance value of 0.000 Ftable that is 56.447> 3.105, thus Ha3 is accepted and Ho3 is rejected.

According to The Act No. 21 of 2008 concerning Islamic Banking in Indonesia, the conventional banks are obligated to spun-off their Islamic business units after achieving a certain set of requirements. The spin-off requirements are: (i) reach 50% market share asset of its parents; or (ii) 15 years after the implementation of the Islamic Banking Act. This study emphasizes the impact of Islamic banks' spin-off on market share. The method used in this study is a difference in difference analysis. This technique is a quasi-experiment separate into two groups, such as the treatment groups (four spin-offs' banks) and control group (two fullfledged Islamic banks). This study used quarterly data from 2005 until 2016. The results show that, first, there is a difference in the Islamic banks' market share between pre- and post-spinoff. Second, there is a difference in the market share of spin-offs' banks between pre- and postspin- off. Third, there are there external factors that can affect the Islamic banks' market share, i.e., inflation rate, interest rate, and economic growth rate. The paper is a useful source of information that may provide relevant guidelines in helping the future development of spin-off activity in Islamic banking industry. The finding could be helpful for policymakers to create a supporting strategy to accelerate the development of Islamic banking industry. This result also could be of use for Islamic banking industries in other countries.

This paper examines the causes of Islamic bank deviated from sharia principles. I want to explore why Islamic bank deviates from sharia principles. This study used a qualitative method with in-depth interviews with one of the Islamic banks in Sumenep Indonesia. I divided this study into two steps. First, examine whether Islamic bank deviates from sharia principles. Second, examine what causes Islamic banks to deviate from sharia principles. The results of this study found that the causes of Islamic banks deviated from sharia principles are the existence of competition between Islamic banks and the existence of profit targets that must be achieved. The findings of this study contribute to providing information to the public who criticize Islamic bank so that they understand the difficult conditions of Islamic bank to adhere perfectly to sharia principles so that the public do not always blame Islamic bank for deviations committed and do not condemn it. In turn, this problem can be found the right solution

Shari'ah banks in Indonesia began to develop when Bank Muamalat was established in 1991. Bank Muamalat, which used the shari'ah system during economic turmoil, was able to maintain stable financial performance. However, according to a Shari'ah economic observer who is also the founder of Karim Consulting, Adiwarman Karim, the current condition of the Islamic banking industry could deteriorate earlier than the conventional banking industry. During the Covid19 pandemic, Islamic banking will face several possible risks. such as non-performing financing risk (NPF), market risk, and liquidity risk. Therefore, this risk will ultimately have an impact on the performance and profitability of Islamic banking. Based on the above background, this study was conducted to determine the financial performance of Bank Muamalat Indonesia in terms of financial ratios that were reported periodically during the Covid19 pandemic. This type of research is a descriptive study with a qualitative approach. The data collection technique used is through the documentation method, namely secondary data collection in the form of quarterly financial reports that have been published on the Bank Muamalat Indonesia website in 2020. The analysis technique used is a descriptive analysis by analyzing banking financial performance ratio data. The results of this study state that the financial performance of Bank Muamalat Indonesia during the Covid 19 the year 2020 pandemic was in a healthy condition from the aspects of capital, quality of earning assets, and liabilities. This is evidenced by the results of the value of the Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), and Financing to Debt Ratio (FDR) which are always at the standard value of a healthy bank financial performance. Meanwhile, in terms of profitability and operational management, Bank Muamalat Indonesia is in an unsanitary condition. This can be seen from the results of the ratio of Return on Assets (ROA), Operational Costs, and Operating Income (BOPO) which are always at ratios that do not comply with sound financial value standards.

Salah satu produk unggulan yang membedakan antara bank syariah dan bank konvensional adalah Rahn atau gadai. Namun demikian, produk tersebut tidak dimiliki oleh semua bank syariah. Selanjutnya salah satu bank syariah yang memiliki produk rahn emas atau pembiayaan gadai emas syariah adalah Bank Syariah Mandiri (BSM), dimana BSM juga merupakan bank syariah dengan aset terbesar di Indonesia. Penelitian ini bertujuan untuk menganalisia pemanfaatan pembiayaan gadai emas bank syariah bagi masyarakat. Metode yang digunakan adalah metode deskriptif kualitatif dengan data primer. Sampel yang digunakan adalah nasabah BSM Cabang Tomang Raya yang memiliki fasilitas pembiayaan gadai emas yang berjumlah 30 nasabah. Adapun pertanyaan penelitian adalah (i) Bagaimana karakteristik nasabah pembiayaan gadai emas syariah; (ii) Bagaimana penggunaan dari pembiayaan gadai emas syariah. Hasil dari penelitian diketahui, rentang usia dari nasabah pembiayaan gadai emas syariah adalah pada usia produktif (30-49 tahun), mayoritas jenis kelamin adalah perempuan, pekerjaan dari nasabah mayoritas adalah pegawai swasta, penghasilan nasabah mayoritas >Rp5.000.000,- per bulan, mayoritas pendidikan nasabah adalah S-1 dan agama nasabah mayoritas adalah Muslim. Selain itu penggunaan uang pinjaman dari pembiayaan gadai emas syariah diperuntukkan untuk kebutuhan konsumtif. Hasil penelitian ini menunjukkan bahwa mayoritas nasabah menggunakan pembiayaan gadai emas untuk tujuan produktif.

Purpose:This study aims to analyses of the influence of the external and internal factors on medium and small micro Enterprise financing in Indonesia Islamic Bank exsternal factors consist of inflation, BI Rate and Exceng Rate, while the internal factors consists of ROA, CAR, BOPO, FDR and NPF. Design/Method/Approach: The analysis technique used in this study is multiple regression with OLS approach. The data used this study are monthly data from 2014-2018. Data obtained from OJK and Bank Indonesia reports.Findings: The finding results of this study, change in macroeconomic conditions (external factor) will indirectly have an impact on the internal conditions od Islamic Bank and will have an impact on intermediation function, especially for the MSME sector, while partially the factors that influence MSME financing are only in inflation and Exceng rates, CAR, BOPO, NPF. FDR and BI Rate does not affect MSME financing because Islamic Bank do not use the interest system but instead use the profit sharing system.Originality/Values: The main contribution of this study to industry platetrs, Islamic bank and policy makers. Islamic bank must make more efferts to provide financing for MSME. Islamic Banks must be innovative and creative in creating and offering new products related to financing to MSME.

In this paper, we demonstrate the importance of the risk of notoriety for Islamic banking, in addition to other financial and non-financial risks. We present the results of a survey carried out targeting the active population of the city of Rabat in Morocco, which main objective is to detect the most decisive criteria that a consumer can adopt in order to form a perception on an Islamic bank. We also focus on the compliance variable to Islamic Sharia because it is directly related to the specificity of Islamic banking, which is conformity with the laws of Islam.

Purpose: The aim of this study is to empirically understand whether Islamic banks have a positive relationship to economic growth in Indonesia. Methodology: This study examines the causal relationship amongst several selected variables: real GDP (RY), total deposit (TD), the change in the Consumer Price Index as an inflation proxy (INF), and the ratio of total imports and exports to nominal GDP (OE). In order to accomplish the research objectives of this study, a time series quarterly data spanning from the first quarter of 2003 to the last quarter of 2011 comprising of 36 data points has been used to perform an effective analysis. Findings: The inference deduced here is twofold; First Islamic banks in Indonesia are still unable to contribute significantly to Indonesia’s economic growth. Second, the relationship between Islamic banks and economic growth in Indonesia is positively but weakly correlated. Research Limitations: For this time series research, the researcher is limited by the small amount of data (2003.Q1 to 2011.Q4).

One Way to maintain the stability of banking industry is by applying the deposit insurance scheme. The application of the deposit insurance scheme has an impact by increasing the level of bank deposits. The objectives of the research are to identify the factors affecting the level of deposits of Islamic banks in Indonesia and managerial implications regarding to the functions of Indonesia Deposit Insurance Corporation (LPS). The technique used is the panel data regression with fixed effect model using the data from the 11 Islamic banks for the period of 2011 -2015. The results show that the factors affecting the level of deposits of the Islamic banks in Indonesia significantly and positively include the size of banks and their non-performing financing (NPF); however, they influence the capital negatively. Based on these results, LPS is required to build or sharpen the surveillance systems as part of its early detection by doing the mapping based on the size and to monitor the bank capital structure and bank finance portfolio structure.DOI: 10.15408/aiq.v9i2.5156

The role of banks as financial institutions have never escaped from the credit or financing problems. For Islamic banks, the large amount of funding given to the growing risk of consequences to be borne by the banks concerned. On the other hand, the macroeconomic shocks also have an impact on the financial risk borne by Islamic banking. The purpose of this research is to empirically analyze the effect of macroeconomic conditions (interest rate, GDP, exchange rate, and inflation) on the Non-Performing Ratio (NPF) of Islamic banking in Indonesia in the period January 2009 to December 2015. The data analysis used in this study is Error Correction Model (ECM) of the aggregate data shariah banking in Indonesia.

As there is an increasing trend of Muslims and non-Muslims accepting Islamic banking, it is crucial to reconnoitre customers’ intention to use Islamic banking products. Such rationale is based on theoretical foundation and empirical evidence that customers’ perception towards a particular product would lead to their intention to choose that product. The purpose of this study is to examine the determinants of intention to use Islamic banking products in an emerging and vibrant market. 200 copies of questionnaires were distributed, 131 usable copies were subsequently collected. The data were then analysed using PLS-SEM. The findings show that attitude, government support, and social influence possess explanatory and predictive capacity to envisage customers’ intention to use Islamic banking products. As banking service is localized to better serve the customers, this study extends the literature by providing insights into the subject matter in emerging markets.

The business characteristic of Islamic banks is the implementation of Islamic business ethics. Parallel with the trend of increasing preference to ethical institution, Islamic banks should put this as its competitive edge toward its competitor conventional competitor banks. However, only few previous studies discussed about the implementation of Islamic business ethics within Islamic banks and none suggested how to measure such implementation. This paper is a study of the literature on ethics and Islamic business ethics as the first step in developing a measurement tool of Islamic business ethics implementation within Islamic banks. This paper synthesizes the dimensions of Islamic business ethics that is excavated from the Quran and Sunna, being proposed by previous studies. There are seven dimensions, namely unity of God, benevolence, justice and equity, sincere, equilibrium, trusteeship and responsibility. Subsequently, this paper outlines these dimensions into 21 items. The opportunity of future empirical study is recommended at the end of this paper.

This paper analyses the performance and strategy of Islamic banks after the spin-off and establishment of a full-fledged Islamic bank (separated from the parent bank). Siswantoro (2012) stated that one good strategy was to acquire a good conventional bank then convert it into a full-fledged Islamic bank. The research methodology used is descriptive with graph analysis (a) after spin- off and (b) after September 2010. The sample in this research is eight Islamic banks that were recently established as full-fledged Islamic banks. Most Islamic banks that have been converted in the full-fledged scheme could optimize some source of funding such as capital injection and increasing temporary investment deposit. Murabahah (selling activity) still dominated their loan due to low risk and fixed income.

The purpose of the paper is to investigate role of the financial performance, ownership structure and number of syari'a supervisory board of Islamic banks in Indonesia on the sustainability of corporate social responsibilities (CSR) disclosure. Ownership structure and number of syari'a supervisory board of Islamic banks as proxy of implementation good corporate governance (GCG). There are seven (7) fully fledge Islamic banks in Indonesia. This study uses logic regression to test empirically whether the CSR is highly influenced by the factors identified earlier. Evidence was found that size, ROA and leverage do not have significant role in corporate social responsibilities (CSR) disclosure. Specifically, the results infer the fact that the CSR disclosures are significant and positively associated to bank size and ownership structure only. The result of the study has confirms the hypothesis that bank size and ROA has positive associated with CSR disclosure. This suggested that large and profitable banks have more resources to devote to social activities. Leverage negatively influences the disclosure of CSR. Thus, lowly leveraged banks will tend to make larger donations than highly leveraged banks. Ownership structure and number of syari'a supervisory board of Islamic banks have positive associated to CSR disclosure. These results also confirm the predictions that good corporate governance mechanism lead to the greater monitoring and thereby greater CSR disclosure.

Fee-based income which is another operating income is proportional to the banking operational income. The elements of operating income included in the group fee based income are commission and provision income, income from foreign exchange or foreign exchange transactions and other operating income. This study aims to describe the comparison of the acquisition of fee-based income in conventional banks and Islamic banks by using secondary data in the form of financial reports in 2014-2015 which were analyzed for comparison using ananalysis intercompany basis through a descriptive quantitative approach. The results showed that the comparison of fee-based income in the conventional bank group was surpassed by Bank Mandiri, which was able to achieve the highest fee-based income compared to BRI and BNI in the 2014-2018 period. Whereas the sharia bank group was outperformed by Bank Syariah Mandiri with the highest fee-based income compared to BRIS and BNIS in the 2014-2018 period. The acquisition of fee-based income in the conventional bank group compared to Islamic banks was outperformed by Conventional Banks namely Bank Mandiri, which each year significantly won the fee-based income highest. Whereas in the proportion of fee-based income to operating income at conventional banks, Bank Mandiri was still in the first position with the highest proportion of 28.61%, followed by BNI in the second position and BRI in the third position. As for Islamic banks, the average proportion of fee-based income to operating income was also occupied by Bank Syariah Mandiri with a gain of 12.89%, followed by BRIS in the second position with 4.84% and the last BNIS of 3.71%.

The existence of the regulation for Islamic banking causes it to conduct its activities by the guidance of Islamic principles which avoid some non-halal sources of income. On the other hand, the transactions between Islamic banking and conventional banking are unavoidable because conventional financial institutions still dominate all transactions in each country. This means that non-halal sources of income cannot be avoided, by the way of the transaction is done. This research aims to analyze on the sources of income and its distribution of the non-halal funds of Islamic Banks in Indonesia. This research is quantitative. The method of collecting data documentation uses data from 2015-2017 with a total sample of 102 Islamic banks. The results show that there were differences in the average non-halal funds of Islamic Commercial Banks with Islamic Business Unit Bank. In addition, this study shows that Islamic commercial bank tends to have non-halal funds bigger than Islamic Business Unit Bank. On the other hand, the result shows that non-halal funds sources in the banking industry are dominated by interest income from another conventional bank and the using of non-halal funds is dominated by social activities.

One of the common measurements used to evaluate a company’s performance is the efficiency performance which indicates a company’s efficiency score in utilizing inputs to produce outputs. This study aims to evaluate the performance of state-owned Indonesian Islamic banks by measuring their technical efficiency along with the determinant factors of their efficiency over the period 2014-2017. In this study, DEA, a non-parametric technique method, is employed to measure the efficiency of four state-owned Indonesia Islamic banks. Another method, Tobit-regression, is used to identify the determinant factors of their efficiency. Four state-owned Indonesian Islamic banks are chosen as the object of this study, namely Bank Syariah Mandiri, BNI Syariah , Bank Rakyat Indonesia Syariah, and BTN Syariah. The results of calculation using DEA methos show that the average efficiency level of all state-owned Indonesian Islamic banks over four consecutive yerars is 100%. It means that all the state-owned Indonesian Islamic banks operating in Indonesia have been able to optimize all their resources and are considered efficient over the period 2014-2017. Tobit-regression model results show that bank size, capitalization, and profitability significantly affect all state-owned Islamic banks’ efficiency, while bank expenses do not have a significant effect on their efficiency.

The study aims to analyse the spin-off policies’ impact on the Islamic banks’ efficiency in Indonesia. The study was conducted on five spin-off Islamic banks and efficiency were measured by the BOPO ratio. The research variables used were dummy spin-off, ROA, FDR, and economic growth. Data analysis used panel data regression on annual data from 2008 to 2018. The results suggest that, first, the implementation of spin-off policy significantly increased the operational efficiency of Islamic banking. Second, ROA also has a negative effect on efficiency. Third, FDR and economic growth have no significant effect on the Islamic banks’ efficiency in Indonesia.

The purpose of the study was to investigate which factors determine saving and financing in Islamic banks in Indonesia by using Gregory&ndash, Hansen cointegration, vector error correction mode (VECM), Granger causality, and the impulse response function. The results disclose the existence of a long-running cointegrating relationship with a structural break in the deposit and financing case to the consumer price index, industrial production, interest rate, exchange rate, and Jakarta Islamic Index. Most of the structural breaks appeared in January 2006 and April 2007 for both deposit and financing, revealing the first stage of the financial crisis. Any short-term deviation between deposit and financing will give rise to a stable relationship in the long term. In the short-term, there is bidirectional causality between deposits and industrial production and between the consumer price index and financing. This finding shows that real activity, as measured by industrial production, is a highly determinant factor of Islamic bank deposits, while inflation, as measured by the customer price index, is the determinant factor of Islamic bank financing. Our results also suggest that a mix of dynamic behaviors from both Islamic bank savings and financing was revealed in response to the shock of the macroeconomic variable, giving better insight for the government and stakeholders into Indonesian Islamic banking.

Although the growth of Islamic banking assets is still high, the market share of Islamic banking reached only ± 4,92% by the end of May 2014. Islamic banks should implement an appropriate strategy to face dynamic changes in the business environment. The education strategy is one of the business strategies of Islamic banks that remain a priority today. It provides information and understanding for society about the function, role, activities, and products as well as services of Islamic banks. This study examines the impact of fit between the education strategy and contingency variables (known as strategic-fit) on performance. The contingency variables include efficiency of input, organizational competency, CEO tenure, and composition of shariah supervisory board. The performance of Islamic banks consists of both financial and social performances. Using the data from 1997 to 2012 of 10 fully-fledge Islamic banks in Indonesia and least squares method, this study shows that the efficiency of input has a positive effect on the educational strategy implementation. On the other hand, the composition of shariah supervisory board and organizational competency negatively affect the implementation of the educational strategy. Nevertheless, there is no strong evidence that CEO tenure influences the implementation of the educational strategy. Adopting the method of Van de Ven and Drazin (1985) to determine the degree of strategic misfit, this study finds that the misfit between educational strategy and its contingency variables has a negative effect on financial performance, but no significant effect of misfit on social performance. Keywords: Islamic bank, strategic-fit, educational strategy, performance --- Meskipun pertumbuhan aset perbankan syariah masih cukup tinggi, namun pangsa pasar perbankan syariah hingga akhir Mei 2014 baru mencapai ± 4,92%. Kondisi ini menuntut perbankan syariah untuk mengimplementasikan strategi bisnisnya secara tepat yang disesuaikan dengan perubahan lingkungan bisnis. Salah satu strategi bisnis yang menjadi perhatian perbankan syariah adalah strategi edukasi. Strategi ini ditujukan untuk memberikan informasi dan pemahaman kepada masyarakat tentang fungsi, kegiatan, maupun produk dan jasa bank syariah. Penelitian ini menguji dampak kesesuaian strategi edukasi dengan variabel kontinjensinya terhadap kinerja. Variabel kontinjensi dalam penelitian ini meliputi tingkat efisiensi input, kompetensi organisasi, tenure CEO dan komposisi Dewan Pengawas Syariah (DPS). Kinerja dalam penelitian ini meliputi kinerja keuangan dan kinerja sosial. Dengan periode pengamatan sejak 1997 hingga 2012 pada 10 bank umum syariah di Indonesia, hasil analis menggunakan metode least square menunjukkan bahwa efisiensi input berpengaruh positif terhadap implementasi strategi edukasi, sedangkan kompetensi organisasi dan komposisi DPS berpengaruh negatif terhadap implementasi strategi edukasi. Namun demikian, tenure CEO tidak terbukti berpengaruh signifikan terhadap implementasi strategi edukasi. Dengan mengadopsi metode Van de Ven dan Drazin (1985) untuk menghitung tingkat strategic misfit, penelitian ini membuktikan bahwa ketidaksesuaian (misfit) antara strategi dengan variabel kontinjensinya berpengaruh negatif terhadap kinerja keuangan, namun tidak berpengaruh signifikan terhadap kinerja sosial. Kata kunci: bank syariah, kesesuaian strategi, strategi edukasi, kinerja

Islamic Bank is a bank that applies Islamic principles in running the business. Until 2015, there were 12 Islamic Bank in Indonesia; one of them already listed on the stock market. The purpose of this study was to analyze differences in the bank's soundness was assessed using a bank's risk profile, good corporate governance, income, and capital (RGEC) between listed Islamic Banks and the unlisted ones. Using the data period 2011-2015 used the independent t-test to test for differences. Statistical tests showed that there is no significant difference in credit risk as measured by NPF and Earning as measured by BOPO that represent cost efficiency between the two groups of companies. Listed Islamic banks have lower credit risk and greater efficiency than the unlisted ones DOI: 10.15408/aiq.v9i1.4011

The aim of this research is to analyze if there is a difference between the spinoff’s type and profit at spinoff’s bank. There are two type of spinoff in Indonesian Islamic banking industry, such as: spinoff that using acquisition, convert, merger and spinoff; and; pure spinoff. This research is using panel regression with random effect. The result shows there is no difference between type of spinoff and operational profit at spinoffs bank. This result implies that the spinoff type is decided according the business strategy that are going to choose by the parent’s bank. There are a lot of factors that are going to be considered to choose the spinoff’s type for separate the Islamic business unit from its parent’s bank.

Application of profit sharing (Mudharabah) principle in finance conducting by Bank Muamalat Pekanbaru branch has given much contribution for small and medium enterpreneur development in Indonesia particularly in Pekanbaru. It is more flexible in the provision of collateral, more flexible in setting rewards and broader in facilities (including banking and financial institution such as receivables factoring, venture capital, leasing and mortgage). On the other hand, the quality of Islamic bank financing is relatively better. Therefore, this research describes the application of Mudharabah financing toward small and medium entrepreneur in Bank Muamalat Indonesia branch of Pekanbaru. In this study, employs the method of descriptive quantitative analysis, the data used are primary data obtain from interview and questionnaire. The respondent consists of 50 customers who have received financing Mudharabah from Bank Muamalat. According to the report, it can be conclude that the characteristic of small and medium entrepreneur who received financing is based on assessment in profile or identity of customer, kind and form of business, form of financial statement and collateral in financing is categorized in fair. The application of Mudharabah based on assessment of application aqad financing Mudharabah, application term and financing procedure, period and profit sharing ratio, disbursement of financing is categorized in fair. Finally, suggestion to the Bank Muamalat Indonesia intensively to give socialization or understanding related application in financing Mudharabah toward small and medium entrepreneur intensively.