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This study investigates the impact of profitability and liquidity on bank viability, considering capital adequacy as a moderating factor in Islamic commercial banks in Indonesia. The research sample consists of 9 Islamic commercial banks from 2018 to 2022. The dependent variable, bank survival, is assessed using Return on Assets (ROA). The independent variable, profitability, is measured by Return on Equity (ROE), with Capital Adequacy Ratio (CAR) as the moderating variable. Control variables include Net Profit Margin (NPM), Operational Efficiency (BOPO), and Loan to Deposit Ratio (LDR). Analysis is conducted using multiple linear regression with a Fixed Effects model. The findings indicate that capital adequacy functions as a pure moderator, enhancing the relationship between NPM and ROA while weakening the relationship between ROE and ROA.

Banking and risk are synonymous concepts. The risk concepts for both conventional and Islamic banks are broadly similar, and liquidity risk is among the most important risks that all banks are exposed to. The management process of liquidity risk, which arises when banks do not have enough assets to meet their liabilities at maturity, may differ in conventional and Islamic banks. This study aims to present a comparative analysis of the liquidity determinants of conventional and Islamic banks operating in Turkey. Using the data of 3 Islamic and 17 conventional banks for the period between 2011Q1-2022Q2, the analysis, which also aims to see the short and long-term effects, concludes that the determinants of liquidity risk for conventional and Islamic banks are largely similar. However, the liquidity of Islamic banks is more sensitive to bank-specific variables. The findings showed that Islamic banks, which cannot use all of the conventional liquidity management tools in the liquidity management process for different reasons, have to hold higher liquid assets than conventional banks in the short term, even if they are balanced in the long term.

Measuring the disclosure of social activities carried out by Islamic banks is very important. However, the results of measuring the disclosure of social activities of Islamic banks in Indonesia still need to be higher when measured by the current CSR disclosure measurement index. The CSR disclosure measurement index often used in related research comes from research results in various countries in the Middle East and Southeast Asia. This is one of the considerations that causes the level of CSR disclosure of Islamic banks in Indonesia to be relatively low. Studies on developing an index for measuring CSR disclosure of Islamic banks in Indonesia are based on Sharia enterprise theory (SET). Based on the results of literacy studies of related research conducted in the Middle East, Southeast Asia, and Indonesia, several assessment dimension criteria need to be developed, including those related to the obligation of Islamic banks to report their social activities from the start of their establishment, environmental awareness education for employees, use of environmentally friendly materials. to support operational activities and collaboration with social communities in order to achieve acceleration and equal distribution of community welfare.

In the realm of banking, Islamic banking concepts and practices may appear unfamiliar to certain customers, particularly those transitioning from conventional banking systems. The perception of customers is significantly influenced by the level of education and awareness imparted by the banks themselves. Moreover, it is widely believed that customer perception directly impacts their satisfaction levels. Within Tanzania, the Islamic banking sector has experienced modest growth in recent years. This study aims to delve into the perception held by customers regarding Islamic Banks’ adherence to Shariah principles in their operations. Also, it aims to understand the factors that attract customers to Islamic banks instead of conventional ones. This research focuses on the Islamic banking industry in Tanzania, covering both the mainland and the Island of Zanzibar. A total of 305 Islamic bank customers participated in this study by completing a close-ended questionnaire. Using a descriptive research design, this study examined four key factors: the banks’ compliance with Shariah principles, customers’ awareness of Islamic banking products and services, criteria used by customers when selecting a bank, and customer satisfaction with the quality of services offered. The findings showed that the majority of Islamic bank customers in Tanzania perceived these banks to be operating in accordance with Shariah law. This study also highlighted that Shariah compliance was the primary influencing factor in choosing an Islamic bank over a conventional followed by service quality. Therefore, Islamic banks in Tanzania should focus on providing more education about Islamic banking and ensuring that their products align with Islamic law.

Amidst the pandemic, Indonesia witnessed an economic downturn characterized by wide-spread layoffs, leading to an escalation in the unemployment rate and a decline in individual purchasing power. This crisis also bore down on the market share of Islamic banks. According to the 2021 survey conducted by the Islamic Financial Services Board (IFSB), the primary hurdles faced by Islamic banks during the pandemic were rooted in legacy infrastructure and technology. Loyalty, trust, and customer satisfaction are intricately linked to the quality of services provided, beginning with the customer's comprehension of Islamic banking. This study delves into the impact of knowledge on customer loyalty, with satisfaction and trust acting as mediating factors among Islamic bank customers in the context of the COVID-19 outbreak. Employing a quantitative approach, the study gathered data from 105 respondents based on the Isaac-Michael formula endorsed by the Islamic Economist Association in Yogya-karta in 2021, administered through questionnaires. The data was then analyzed using Struc-tural Equation Modeling. The findings of this study underscore that knowledge significantly influences customer satisfaction, trust, and ultimately, loyalty. Additionally, satisfaction demonstrates a notable positive effect on loyalty. However, trust, in isolation, does not exert a direct influence on loyalty. Moreover, it was observed that knowledge directly impacts loyal-ty, and this effect is mediated by satisfaction, while trust does not serve as a mediator between knowledge and loyalty. In light of these findings, this study advocates for initiatives within Islamic banks to enhance financial literacy, provide accurate information, and foster under-standing, countering any negative narratives that may erode public trust and perceptions. Furthermore, there is a pressing need to bolster digital services to ensure the continued loyalty of Islamic bank customers.

The protracted pandemic has an impact on the Islamic banking industry. Comparing the financial performance of Islamic financing before and during the COVID-19 outbreak helped to evaluate the impact of this factor. This type of quantitative research utilizes secondary data in the form of monthly financial reports from the Financial Services Authority’s website for 2018–2021. The variables used are ROA, FDR, BOPO, NPF, and CAR. Before and throughout the COVID-19 epidemic, Islamic banks demonstrated varied financial performance levels as measured by the ratios of ROA, FDR, BOPO, and CAR. ROA and CAR ratios have risen throughout the COVID-19 epidemic. During the COVID-19 pandemic, the FDR, BOPO, and NPF ratios declined. The ratio of BOPO to CAR is the finest and most consistent of these five ratios, ranking first (very healthy) before and during the pandemic. The ROA ratio for FDR and NPF remains standard, with an average ranking of second (healthy). The bank’s condition stayed normal and healthy over the 2018–2021 period, both before and after the COVID–19 epidemic, despite variations in the financial performance of Islamic banks as indicated by the ROA, FDR, BOPO, NPF, and CAR ratios.

The prevalence of Islam among the Indonesian population has significant prospects for advancing Islamic banking institutions. The categorization of Islamic banks according to ownership is bifurcated into private and public ones. These researchers look at how well Islamic banks from both categories are doing using the Maqashid Sharia Index (MSI). It is essential to examine whether there are any variations in the performance of MSI (Muslim-owned banks) before and following the merger of state-run businesses (SOEs), as this merger impacts the structure of SOE-owned Islamic banks. The Mann-Whitney U-test, a quantitative approach, was employed to analyze data extracted from the financial statements of Islamic banks spanning the years 2016 to 2022. The results indicate performance variations between private and public Islamic banks, as measured by the MSI. Islamic banks that are privately owned demonstrated superior performance in terms of Maqashid Sharia, as seen by their dominance in the top five rankings. The research findings indicate that government-owned Islamic banks excel in promoting educational objectives, but private-owned Islamic banks demonstrate supremacy in advancing goals related to benefit and justice. The performance of state-owned Islamic banks in terms of MSI before and following the merger is equal.

This paper aims to investigate the significance of having a sharia division in Indonesian and Malaysian Islamic banks. This paper is a qualitative study based on a review of official documents from the Indonesian Central Bank and the Indonesian Sharia Council. Interviews with Sharia Advisers were conducted to conduct an interpretive, critical, and descriptive study of the issue. The interpretive analysis was carried out by interpreting each issued regulation, and the analysis was deepened by presenting a description of the sharia division's implementation in Malaysian Islamic banks. Efforts to analyze the results are carried out by reducing the information obtained, presenting the data and concluding. According to the research findings, there are numerous deviations in non-compliance with Sharia implementation in disbursed financing. According to the findings, Islamic banks must have a Sharia division in their organisational structure. The Sharia division ensures that Sharia bank operations follow Sharia principles, beginning with input, processing, and output. This study's theoretical implication is a study of sharia implementation by providing a sharia division in the organisational structure of Islamic banks. This is a more extensive study involving more sharia banks on their willingness and the internal awareness of the presence of the sharia division. Any country that wishes to establish sharia banks must research the presence of sharia divisions to ensure sharia compliance in their operations.

Providing quality services is one strategy to achieve business success in the service sector, especially regarding customer satisfaction and loyalty. This study aims to understand the empirical model and analyze the impact of service quality on customer loyalty, mediated by customer satisfaction. To achieve this, an explanatory research design was used, and a sample of 150 customers from the Palembang branch of Islamic Banks was selected using a simple random sampling technique. A questionnaire was used as the research instrument, and its validity and reliability were tested using CFA analysis. A complex causality model was then used, which was pushed through the PLS-SEM technique. The results revealed that service quality has a significant direct effect on customer loyalty, with a substantial immediate impact on customer satisfaction. Additionally, customer satisfaction partially mediates the effects of service quality on customer loyalty. These findings have significant implications for businesses in the service sector, indicating that providing quality services is a critical strategy for achieving success, particularly in customer satisfaction and loyalty. Based on these results, it is suggested that businesses focus on improving the quality of their services by regularly monitoring and assessing the quality of services offered to customers and investing in employee training to enhance the quality of their services.

Purpose: Understanding the credit agencies allows the country to diversify its investments and efficiently achieve the set goals. Therefore, the present study aimed to explore the credit rating agencies within the Saudi Islamic system. Methodology: The study employed a qualitative research design by recruiting 25 key managers working in selected Saudi banks. The data for this study has been collected through a semi-structured interview. Findings: The study results showed that the Islamic banking credit rating agency positively affects foreign business investors compared to domestic investors. The results also indicated that transparency leads to better share activisms to improve its evaluation method through better deployment. The two critical factors affecting the credit rating include the bank board’s size and its independence. Conclusion: The study has concluded that the credit rating system of any financial institution should be designed to locate the problems occurring within the Islamic banks.Originality: The study has highlighted that independent directors favor the rating system due to the achievement of better and higher rates.

This study aims to analyze the perceptions and preferences of the Malay community towards Islamic banking and examine the opportunities and challenges of Islamic banking in maintaining its credibility. This research method is carried out with a quantitative descriptive approach through a survey of 100 respondents. The sampling technique used was accidental sampling through the distribution of google forms. The study results indicate that the development of the number of customers of Islamic banks has indeed increased. However, compared to conventional banks, it still dominates the number of customers who save in conventional banks even though the Malay community, which is predominantly Muslim, should be the dominant interest in Islamic banks. There are various perceptions of the Malay community towards Islamic banking. Some Malay people think that Islamic banks are stated in a profit-sharing manner the same as conventional banks, with the term interest only differing in mentioning term. Due to the lack of promotion, many Malay people still use conventional banks for economic transactions. Human resources management influences the perception of the Malay community towards Islamic banking.

Purpose – The purpose of this study is to critically analyze the Financial Compensation Funds being accumulated by Islamic Banks of Bangladesh in credit-based transactions. In this connection, due to the evolved liquidity crisis amidst the COVID-19, industry opinions are observed that suggest including the compensations or the donation funds directly into the bank's income account. But the Sharīʿah does not permit it. Such alternative proposals of using compensation or donation fund during crises are scrutinized under Sharīʿah principles to come to a logical conclusion. Design/methodology/approach – The approach followed in the study is textual and discourse analysis through descriptions of ideal Sharīʿah-compliant methods for handling late payment of credit and comparison with the industry practices. Findings – It is observed that there are conceptual gaps in the industry as is reflected in the Islamic Banking Guideline of Bangladesh. The funds collected from the debtor due to late payment are named as compensation (Ta‘wīḍ) whereas the nature of the transaction is a donation (Tabarru'). The misconception can lead to various Sharīʿah non-compliant activities later with the funds. The proposals brought out in the industry to use such compensation/donation funds during a crisis are a consequence of this. The proposals of using such funds for banks' purposes in any situation are not supported by Sharīʿah principles and are against the Islamic banking philosophy. Originality/value – The study is very relevant to the current crisis of COVID-19 in the domestic Islamic Banking Industry and also instrumental for the future guidance to stick to the Sharīʿah principles in managing compensation or donation funds by the Islamic Banks.

Recovery after the COVID-19 pandemic is one of the factors in the decline in people's purchasing power. Where the policy of termination of employment for employees makes the community unproductive and has no income. To overcome this, people need alternative solutions that are fast and appropriate to get money in order to meet their needs. Gold pawning institutions become an alternative that is considered appropriate because with public investment in the form of gold and jewelry, they can be pawned to use their value. Bank Syariah Indonesia is a banking institution that has several superior products, one of which is the Gold Pawn which runs its operations based on sharia. This study uses quantitative research methods with a causal associative approach aimed at knowing and analyzing the causal relationship between two or more variables. The results of this study indicate the gold pawning method of BSI KC Surabaya Darmo and its influence on customer decision making. The appraisal practice is in accordance with sharia theory because the terms and conditions have been met. From this study it can be concluded that there is an influence between the assessment method on customer decision making.

This study was conducted to examine the effect of education level on Sharia Supervisory Board (SSB), financial and non-financial SSB, and Investment Account Holders (IAH) on Islamic Social Responsibility Disclosure (ISRD) using the control variable of firm size. The object of the research is Islamic banks in the four countries with the highest percentage of poor people in the selected regional division of Asia and Europe, namely Indonesia (Southeast Asia), Bangladesh (South Asia), Jordan (West Asia), and Turkey (Southeast Europe) which publish annual reports in 2013-2019. The results showed that SSB education level and firm size had a positive effect on ISRD, while financial and non-financial fields had no effect on ISRD. Meanwhile, IAH has a negative effect on ISRD. Practically, this research can provide consideration and input for Islamic Bank regulators in evaluating existing regulations. Future research is expected to add proxies for SSB characteristics and other variables in testing the effect of Islamic bank ISRD quality

The problem of default by debtors becomes a primary concern for Islamic banking recently. This study analyzes the effect of economic pressure on the risk of default on Islamic banks, both in the short and long term, the risk response of default, and also other variables' contribution in explaining the diversity of risk of default of Islamic banks. This study used monthly data from 2007 to 2020 by using a vector error correction model. The results show that inflation and exchange rates affect the risk of default in the short term, while inflation, exchange rates, and interest rates affect the risk of default in the long run. Non-performing financing quickly stabilized when responding to the interest rates. The Islamic stock index has the most significant contribution in explaining the diversity of default risks. Islamic banks must be aware of the monetary fluctuation and also careful in analyzing the demand for financing by looking at the future economic prospects.

The market shares of several Muslim majority countries' Islamic banks have remained low (e.g., Malaysia, Turkey, and Indonesia) despite many Muslims. Targeted marketing can be an effective strategy to target potential customers, increase the market share, and ultimately Bank's revenue. This study firstly aims to explore potential segmentation bases for the customers of the Islamic Bank and the impact of segmentation analysis on the targeting and positioning of the Islamic Bank. This study applied an exploratory, qualitative research design. The data were collected via in-depth interviews with 30 Muslim participants using purposive sampling. The data were analyzed using inductive content analysis to find the emerged themes. The result shows that the psychographic segmentation would be more plausible to be used by the Islamic Bank than the demographic segmentation. Based on this finding, Islamic banks should consider using psychographic segmentation to target their markets.

The purpose of this study is to explore the level of financial exclusion in North-East Nigeria and determine the reasons and barriers behind the huge percentage of financial exclusion. The contemporary Islamic bank is considered as a solution to tackle financial exclusion. The paper uses a quantitative approach in which 2500 questionnaires were distributed out of which 2352 were received back from the respondents. The data was gathered and analyzed using Structural Equation Modeling, and descriptive, correlation and regression analyses. The findings revealed that awareness, literacy, and religiosity are considered as the key barriers to financial exclusion and the need of Islamic banks with Shariah-compliant products is highly felt to address religious motivation in North East Nigeria. Since Islamic banks are compliant with Shariah principles, the Nigerian government should facilitate the creation of more Islamic banks to tackle financial exclusion.

Abstract: This research is to formulate dominant aspects and sub-aspects of benefits, opportunities, costs, risks for the Issuance of Sukuk and shares as an external funding source for Sharia Banks (IBs). The fundamental problem is related to the less optimal role of Islamic banking in the national economy because the market share is 5.94% (early 2019). It is necessary to increase external funding sources through the Issuance of Sukuk and shares. There were 3 IBs share issuers: BPDS, BRIS, BTPNS, and 4 IBs Sukuk issuers: BMI, BSM, BNIS, BRIS. The method uses Analytic Network Process to identify dominant aspects and sub-aspects that IBs consider to issue Sukuk and shares. The primary data from in-depth interviews with each 5 Sukuk and share issuer expert practitioners of IBs Treasury and Corporate Planning. The consideration of IBs is much influenced by the benefit and opportunity aspects. Dominant sub-aspects of IBs considerations in Sukuk issuance: sources of funds for capital and business expansion (benefit aspects), oversubscribed investor demand (opportunity aspects), cost of capital (cost aspects), sharia compliance risks (risk aspects). Dominant sub-aspects of public share issuance: increasing capital (benefit aspect), broad investor base (opportunity aspect), underwriter costs (cost aspect), information disclosure demands (risk aspect). Abstrak: Penelitian ini untuk merumuskan aspek dan sub-aspek dominan dari manfaat, peluang, biaya, dan risiko (BOCR) atas penerbitan sukuk dan saham publik sebagai sumber pendanaan eksternal Bank Umum Syariah (BUS). Dasar masalah terkait belum optimalnya peran perbankan syariah dalam perekonomian nasional karena pangsa pasar yang baru mencapai 5,94% dari total perbankan nasional (awal tahun 2019). Ini disebabkan minimnya permodalan dan skala industri serta individual BUS, sehingga perlu peningkatan sumber pendanaan eksternal melalui penerbitan sukuk dan saham publik. Di awal 2019 terdapat 3 BUS emiten saham: BPDS, BRIS, BTPNS dan 4 BUS emiten sukuk: BMI, BSM, BNIS, BRIS. Metode analisis data menggunakan Analytic Network Process untuk mengidentifikasi aspek dan sub-aspek dominan yang menjadi pertimbangan BUS menerbitkan sukuk dan saham publik. Data utama hasil wawancara terhadap masing-masing 5 praktisi ahli Treassury dan Corporate Planning BUS emiten saham dan emiten sukuk. Pertimbangan BUS dominan dipengaruhi aspek manfaat kemudian aspek peluang. Sub-aspek dominan pertimbangan BUS dalam penerbitan sukuk yaitu: sumber dana ekspansi usaha dan permodalan (aspek manfaat), permintaan investor berlebih (aspek peluang), biaya modal (aspek biaya), risiko kepatuhan syariah (aspek risiko). Sub-aspek dominan penerbitan saham publik yaitu: meningkatkan permodalan (aspek manfaat), luasnya basis investor (aspek peluang), biaya penjamin emisi (aspek biaya), tuntutan keterbukaan informasi (aspek risiko).

Abstract: This paper investigates if there is a difference in the level of the credit risk of Islamic as compared to the level of credit risk of conventional banks. This paper further investigates the importance of various credit risk determinants and possible differences in how such determinants affect credit risk in Islamic and conventional banking industries. This paper employs dynamic panel regressions using system GMM estimators. The sample includes 11 Islamic and 95 conventional banks in Indonesia throughout 2003-2018. Based on the results, it is concluded that there is no difference in the level of the credit risk of Islamic as compared to that of conventional banks. It is also concluded that credit risk is significantly affected by current and lagged asset size, lagged financing, current profitability, lagged economic growth, and current inflation. The effect of lagged financing, current profitability, and lagged economic growth is different in Islamic and conventional banking. Abstrak: Makalah ini menganalisis apakah terdapat perbedaan antara tingkat risiko kredit pada perbankan syariah dan tingkat risiko kredit pada perbankan konvensional. Makalah ini selanjutnya juga menganalisis signifikansi faktor-faktor yang diduga mempengaruhi risiko kredit dan kemungkinan perbedaan pengaruh faktor-faktor tersebut terhadap risiko kredit pada perbankan syariah dibandingkan pada perbankan konvensional. Makalah ini menggunakan regresi panel dinamis dengan system generalized method of moments (GMM) estimator. Sampel dalam makalah ini mencakup 11 bank syariah dan 95 bank konvensional di Indonesia selama periode 2003-2018. Berdasarkan hasil analisis, dapat disimpulkan bahwa tidak terdapat perbedaan perbedaan antara tingkat risiko kredit pada perbankan syariah dan tingkat risiko kredit pada perbankan konvensional. Begitu pula, dapat disimpulkan bahwa risiko kredit secara signifikan dipengaruhi oleh ukuran aset tahun ini dan tahun lalu, pembiayaan tahun lalu, profitabilitas tahun ini, pertumbuhan ekonomi tahun lalu dan inflasi tahun ini. Pengaruh pembiayaan tahun lalu, profitabilitas tahun ini, dan pertumbuhan ekonomi tahun lalu, secara khusus berbeda pada perbankan syariah dibandingkan pada perbankan konvensional.

This article examines the financial performance of the Islamic Bank of Afghanistan after it transformed its form of banking from traditional Bakhtar Bank to Islamic Bank. in order to know whether or not there are significant differences in banks’ financial performance. We conducted the financial ratio analysis on audited financial statements of the bank from 2009 to 2019. As a result of the financial ratio analysis, we found that the bank’s financial performance has significantly improved from different perspectives namely return on assets, return on equities, liquidity, solvency, and leverage ratios have respectively increased by 0.005, 0.09, 1.69, 0.009, and 8.3 percent. In conclusion, the financial performance of Islamic bank of Afghanistan is considered superior compared to Bakhtar banks’ performance and Islamic Banking is considered favorable and successful in Afghanistan compared to Traditional banking.

This paper aims to analyze customer loyalty to Islamic banks and conventional banks through variables studied from previous research. This study used a qualitative approach to research literature, with data collected from reputable international journal articles indexed Q3 to Q1 and nationally accredited Sinta 3 to Sinta 2. This study examines 55 selected articles about customer loyalty from 1998-2019. The analysis results show that the independent variables, moderating variables, and intervening variables in determining customer loyalty to Islamic banks and conventional banks overlap (have similarities).

Purpose – The objective of this study is to examine the impact of PAKSERV model on customers' satisfaction, loyalty and trust in Malaysian Islamic banks. These comprehensive measures concern on the cultural dimension of service quality by focusing on the mediating role of trust in the Malaysian context. Design/methodology/approach – A survey was conducted involving 401 customers of Islamic banks in the states of Kuala Lumpur and Selangor, Malaysia. The data were analyzed through exploratory factor analysis, confirmatory factor analysis and structural equation model employing AMOS 23 and SPSS 23. Findings – The study found positive relationship of PAKSERV dimensions of service quality, customers' satisfaction, customers' loyalty and the mediating role of trust in enhancing customers' loyalty. This study provides new evidence on how trust can act as a partial mediation on the relationship between customers' satisfaction and customers' loyalty in the cultural context of Islamic banking in Malaysia. Practical implications – The findings of this study can be used as a framework for other Islamic Financial Institutions (IFIs) in improving services to its customers. Originality/value – This study contributes to the body of knowledge in enhancing the understanding on customers' satisfaction, loyalty and trust in Islamic banks in Malaysia. This study also covers a broad range of respondents, hence representing a good diversity of Islamic banks' customers.

This study aims to analyze several factors that influence public interest in saving in Islamic banks in the City of Tasikmalaya. These factors are location, knowledge, facilities, and promotions. This study uses primary data by giving questionnaires to the people of Tasikmalaya City, with a total sample 100 respondents. The method used was Multiple Linear Regression. Based on the analysis that has been done. The results found that the variable of location, knowledge, and promotion have a significant and positive effect on the community’s interest of saving in Islamic banks at Tasikmalaya, but the facility variable have not significant effect on the community’s interest in saving.

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.

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.

The framework for measuring the performance of Islamic banks is related to the concept of efficiency that has been widely implemented. However, there is a deficiency of the DEA model, especially in determining the best ranking of the DMU when there are several DMU units which are equally worth 1. In this study, Islamic banks in Indonesia were used as objects of study. After calculating the super efficiency, then the research will measure the level of influence of each variable on the relative efficiency value through sensitivity analysis. The results showed that, in super efficiency the highest value was owned by BSM bank in 2016 with a relative efficiency value of 1,351, followed by Bank Mega Syariah 2016 with 1,202 and BMI 2016 of 1,175. For sensitivity analysis, the efficiency value of Islamic banks was very sensitive to value output variables, especially operating income variables.

The widespread use of sharia products and instruments encourages society to save funds in sharia banks. The main purpose of this research is to test the effect of financial literacy, profit sharing, knowledge of customers, gender, age, education, income to saving decisions. The type of research is quantitative research by using a non-probability sampling method with snowball sampling and purposive sampling technique to get a sample of 230 respondents. The object of this research was sharia bank's customers in Surabaya. The data obtained by spreading the questionnaire online and offline contains 41 items of statement and question. The data analysis technique is multiple linear regression that calculated by software package used for the analysis of statistical data. The result found that financial literacys of customer has medium effect about 72.1% to their saving decision. The higher level of customers financial literacy increases their ability to manage finance and saving. Meanwhile, profit-sharing has an effect to saving decision, as the higher level of profit sharing will raise societys interest for saving in sharia bank. Otherwise, customer knowledge and demographic factors (gender, age, education and income) have no effect to their saving decision.

Abstract: The purpose of this research is to examine the ability of total assets, deposit funds, and financing of Islamic banks in alleviating poverty in each province. Provincial clusters were measured by poverty levels which are deliberately established to reveal the level of success of each provincial cluster in reducing poverty. This study incorporates methods of hierarchical cluster and non-parametric correlation as means of exposing characters of the relationship between Islamic bank assets and poverty in each cluster measured by low, moderate, and high poverty levels. To refine the findings, correlation tests are performed on each cluster. This study proves that total assets, deposit funds, and Islamic bank financing have a significant negative relationship with poverty in clusters with high poverty level. On the other hand, in clusters with moderate and low poverty levels, the three variables do not have significant negative relationship with poverty. The finding implies the importance of Islamic banks to map the poverty weights in each group of regions so that it can be used to improve the level of poverty alleviation success. Abstrak: Penelitian ini bertujuan untuk menguji kemampuan total aset, dana pihak ketiga, dan pembiayaan bank syariah mengentaskan kemiskinan di setiap provinsi. Kluster provinsi yang diukur menurut tingkat kemiskinan untuk mengungkap level keberhasilan setiap kelompok dalam mengurangi angka kemiskinan. Penelitian ini memadukan metode kluster hirarki dan korelasi non-parametrik sebagai alat untuk mengungkap karakter hubungan aset-aset bank syariah dan kemiskinan. Untuk mempertajam temuan, uji korelasi dilakukan terhadap masing-masing kluster. Penelitian ini membuktikan bahwa total aset, dana pihak ketiga, dan pembiayaan bank syariah memiliki hubungan negatif signifikan dengan kemiskinan pada kluster yang tingkat kemiskinannya tinggi. Sedangkan pada kluster yang tingkat kemiskinannya sedang dan rendah, ketiga variabel tersebut tidak memiliki hubungan negatif signifikan dengan kemiskinan. Temuan ini mengimplikasikan pentingnya bank syariah memetakan bobot kemiskinan di setiap kelompok daerah sehingga dapat digunakan untuk meningkatkan level keberhasilan pengentasan kemiskinan.

The Islamic banking industry is currently one of the main indicators of the development of Islamic economics in Indonesia. In Islamic banking issue, one of the important issues is related to people's preferences and behavior towards Islamic banks. The study of the criteria for selecting a bank has been the concern of many bank marketing researchers. Compared to conventional, such studies are relatively minimal, especially in Indonesia. This study tries to analyze the preferences and behavior of criteria for selection of Islamic banks in Indonesia through the Analytical Network Process (ANP) approach.The results conclude that the most priority criteria that influence the selection of Islamic banks in Indonesia are service factors and religiosity factors or the suitability of banks with sharia principles. Therefore, Islamic banks need to constantly improve the quality of services both services and products so that they can compete with conventional banks. Industri perbankan syariah saat ini merupakan salah satu indikator utama perkembangan ekonomi Islam di Indonesia. Dalam masalah perbankan syariah, salah satu masalah penting adalah terkait dengan preferensi dan perilaku pemilihan masyarakat terhadap bank syariah. Studi tentang kriteria pemilihan bank syariah telah menjadi perhatian banyak peneliti. Studi tersebut relatif minimal jika dibandingkan dengan bank konvensional, terutama di Indonesia. Penelitian ini mencoba menganalisis preferensi dan perilaku pemilihan kriteria bank syariah di Indonesia melalui pendekatan Analytical Network Process (ANP). Hasilnya menyimpulkan bahwa kriteria yang paling prioritas yang mempengaruhi nasabah dalam memilih bank syariah di Indonesia adalah faktor layanan dan faktor religiusitas atau kesesuaian bank dengan prinsip syariah. Oleh karena itu, bank syariah perlu terus meningkatkan kualitas layanan baik produk maupun jasa sehingga mereka dapat bersaing dengan bank konvensional.

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.

This research aims to analyze the influence of Financing to Deposit Ratio (FDR), Non Performing Financing (NPF), Operating Expens-es to Operating Income (OEOI), Firm Size toward Return On Asset (ROA). The object of this research are Islamic Bank in Indonesia and Islamic Bank in Malaysia in 2010-2015. Another aim is to determine whether there are differences in effects of FDR, NPF, OEOI and size toward ROA between Islamic Bank in Indonesia and Islamic Bank in Malaysia. Multiple linear regression analysis was used to test the hypothesis in this study. Chow test is used to determine the differ-ences in the effect. The results of this study concluded that FDR, NPF, OEOI and Size effect on ROA simultaneously, both at Indone-sian Islamic Bank and Malaysian Islamic Bank. In Indonesian Islamic Bank, independent variables that influence toward ROA are FDR, OEOI and Size. In Malaysia Islamic Bank, only OEOA wich affecting toward ROA. Based on the chow test, can be concluded that there is a significant difference between the Indonesian Islamic Bank and Malaysian Islamic Bank. Results of independent t test showed that the average variable that has a different effect between Indonesia Islamic Banks and Malaysia Islamic Banks is Size

The relevance of the title studied in the article is due to the specifics of Islamic Finance, which dem-onstrate their advantages and find distribution throughout the world, both in the countries of Muslim society and in developed European countries. As Islamic Finance in Kazakhstan has not been developed properly since 2009, the authors set a goal to study the experience and mechanism of better adaptation and integration of Islamic Finance in the financial sector of the country. Based on the analysis of interna-tional experience of application of Islamic financial instruments developed and proposed recommenda-tions for enhancing their implementation and increase the impact on the real sector of the economy of the Republic of Kazakhstan. The results of the study showed that the problem of insufficient spread of Islamic banking and fi-nance is using a more conservative model of development Islamic finance and the presence of some restrictive barriers of both prudential and social nature.Research results. The results of the study can be used for the successful spread of Islamic Finance in Kazakhstan, as well as to promote economic cooperation with the countries of the Islamic world.Application area. The results of the study can be used and applied to the successful experience of the implementation and development of Islamic Finance in Kazakhstan, and also with the economic cooperation of the countries of the Islamic world

Numerous studies indicate that government control of a bank has a detrimental effect on its performance. Is this usually the case and does it apply to all types of banks? This is the research question. This paper examines eight Islamic commercial banks in Indonesia as a case study. The study spans the years 2013–2017. The analysis is conducted in two parts. The first stage involves determining the efficiency of the system using the Stochastic Frontier Analysis (SFA) Panel method. Efficiency testing is conducted using two approaches: the intermediation approach and the asset approach. The second objective is to analyze the effect of ownership on efficiency using a panel technique. Testing for efficiency using both the asset and intermediation approaches reveals that the government-owned BUS operates at the maximum level of efficiency. The average value of government BUS efficiency is likewise greater than the average for non-government BUS. Examinations of the effect of ownership reveal that there is no substantial relationship between ownership and efficiency.

The article examines the difference between the principles of operation of Islamic banks from the traditional commercial banks, list the existing problems that must be overcome for integration of Islamic banking in traditional financial industry.

In this article the author carries out the comparative analysis of provision of Islamic banking in the territory of the CIS, by EurAsEC and the Russian Federation. Potential and functioning of Islamic banking in the territory of Russia are considered. The author considers Islamic bank as improving and socially oriented tools for economic and economic activity in Russia. In the text of article the author some provisions which could influence substantially development of Islamic bank in the territory of the Russian Federation express.

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.

Abstrak: Pemetaan Tingkat Kesulitan Keuangan Bank Syariah di Indonesia. Penelitian ini bertujuan melihat seberapa besar tingkat kesulitan keuangan yang terjadi pada bank syariah di Indonesia. Data penelitian ini ditujukan untuk memetakan keberagaman tingkat kesulitan keuangan bank syariah serta mencoba membandingkan beberapa metode penilaian kesulitan keuangan bank yang ada pada bank syariah. Pengukuran tingkat kesulitan keuangan menggunakan tiga metode yang berbeda, yaitu: metode Altman Modifikasi, Bankometer dan Risk Based Bank Rating. Metode penelitian menggunakan pendekatan deskriptif komparatif dengan sampel sebelas Bank Umum Syariah di Indonesia selama periode 2010-2016. Hasil penelitian menunjukkan bahwa bank syariah di Indonesia tidak terindikasi mengalami kesulitan keuangan, namun tetap berpotensi mengalami kesulitan keuangan dengan tingkat kesulitan keuangan yang berbeda antara satu bank syariah dengan bank syariah lainnya. Penelitian ini juga menemukan bahwa ketiga metode pengukuran tingkat kesulitan keuangan yang digunakan pada penelitian ini memberikan hasil yang berbeda dalam mengukur kesulitan keuangan pada bank syariah. Kata kunci: Bank Syariah, Kesulitan Keuangan, Altman Modifikasi, Bankometer Abstract: Mapping of Islamic Bank Financial Distress in Indonesia. This study aims to identify and analyse the level of financial distress of Indonesian Islamic Bank. The data of this study would be utilised to map the level of financial distress of various Islamic banks. This study also aims to assess the level of financial distress by utilising different methods and compare the result. This study measures the level of financial distress by using three different methods, which are: Altman Modification method, Bankometer and Risk Based Bank Rating. This study uses a comparative descriptive approach with eleven samples of Islamic Commercial Banks in Indonesia during 2010-2016. This study finds that Islamic banks in Indonesia are not indicated to have financial distress, but still have the potential to experience financial distress, where each Islamic Bank has different levels of financial distress with another. The three methods of measuring the level of financial distress have differences in measuring financial difficulties in Islamic banks. Keywords: Islamic bank, financial distress, altman modification, bankometer

This study aims to evaluate and analyze the Islamic Social Responsibility Disclosure’s level of Islamic Bank in Indonesia using a disclosure index approach that was developed by Maali et al (2003).The analyzing was developed from 32 disclosure items that must Islamic Bank disclose in their annual report for every year. The level of Islamic social responsibility disclosure varies significantly across the sample. The checklist item result suggest that level of Islamic Social Responsibility Disclosure of Islamic Banking in Indonesia need more attention from the expert of Islamic Accounting, The Standar Accounting Board and Islamic Bank

This paper aims to assess the influence of corporate social performance (CSP) categories which are legal, ethical, economic and discretionary responsibilities over the Dummy Islamic Bank’s (the original name of the bank is remained confidential) financial performance. There are four components of CSP and findings indicate that this Islamic bank has fulfilled each category at minimum level - highest contribution was allocated for discretionary responsibility which is the pinnacle stage of CSP. This study has some limitations which need to be highlighted for future study. First, it only focused on one Islamic bank and may not reflect other Islamic banks in the country or in other region. Next, the period of observation is not lengthy to facilitate for more robust and rigorous analysis.

In this article the author carries out the comparative analysis of provision of Islamic banking in the territory of the CIS, by EurAsEC and the Russian Federation. Potential and functioning of Islamic banking in the territory of Russia are considered. The author considers Islamic bank as improving and socially oriented tools for economic and economic activity in Russia. In the text of article the author some provisions which could influence substantially development of Islamic bank in the territory of the Russian Federation express.

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

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.

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

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

This study examines the preferences of Islamic rural banks clients in choosing Islamic financial contracts to finance their business. Mixed method, combining quantitative and qualitative approaches, was adopted in this study. Quantitative data was gathered from the Indonesian Financial Service Authority to examine the preferences of Small to Medium Enterprises (SMEs) in utilizing types of Islamic financial contracts. Qualitative data was collected by interviewing Islamic Rural Bank (BPRS) managers to investigate the reasons for choices of types of Islamic financing contracts. The finding shows that people prefer to use contracts under mark-up principles rather than Profit Loss Sharing (PLS) principles. Simplicity of the contracts was the main reason for choosing mark-up contracts. This trend affects the growth of mudaraba and musharaka contracts, and ultimately the growth of Islamic banks.

The purpose of the study is to examine the causes of the liquidity risk in Islamic and conventional banks in Indonesia using panel data regression method. The study found the significant and positive relation of ROA and NPF with the liquidity risk, whereas the negative and significant relation of CAR with the liquidity risk in Indonesian Conventional Banks. Meanwhile in Islamic banks, CAR result significantly positive effect on liquidity risk, while ROA shows negative and significant result. Possible explanation for this is that, given the huge profit by the conventional banks, it has more chance to allocate it as liquidity reserve as well as increasing the facilities (improvement on technology). When the NPL is high, conventional banks will increase the liquid assets as a buffer. Unlike that of conventional banks, the Islamic banks in Indonesia might allocate capital as liquidity reserves and might allocate ROA in fixed assets or financing or technology. The result confirm that the role of capital and bank’s performance in indeed important to the banking liquidityDOI: 10.15408/aiq.v8i2.2871

The article examines the difference between the principles of operation of Islamic banks from the traditional commercial banks, list the existing problems that must be overcome for integration of Islamic banking in traditional financial industry.

Murabaha to the purchase orderer is a rival product in the Islamic banking system. It is implemented in the most of Islamic banks (IBs). However, there is a controversy among contemporary jurists (SSBs) in the mechanism of the implementation of this product. The objective of this study is to show the controversial issues related to the product of Murabaha and to identify its impact on the bank's reputation. This study is an exploratory study therefore, based on the literature review relating to the issues of Murabaha to the purchase orderer (MPO), reputation risk, and non-compliance risk. This study tries to describe and reveal the relationship between reputation and non-compliance risk. As well as revealing the impact of reputation risk on the IB stability and financial performance. It aims to brought the attention of decision-makers regarding consequences of these risks. At the end of this paper, concluded that the IBs like all other corporations, affected by the risks reputation, despite their principles that based on Islamic precepts.

The aims of this study are to examine Muslim’s religious norms regarding to their belief on the law of the prohibition of bank interest, and to investigate the effect of religius norms on customers’ decision in using the Islamic banking services. This study employs natural experimental design with Analysis of Variance (ANOVA), and Pearson Chi-Square Test. The exploratory study also conducted to support the quantitative analysis. The results show that the religious norms among Muslims classified into two categories, i.e: traditional and contemporary group and the religious norm of the Muslim have significant affects on the decision in using the Islamic banks.DOI:10.15408/aiq.v7i1.1356