Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah
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Islamic Insurance: A Potential Niche Market of Indonesia
Get PDFIslamic insurance in Indonesia is potentially expected to grow along with the increase in Islamic financial market. Hence, this paper aims to develop strategy and policy recommendations for stakeholders of Islamic insurance industry in Indonesia. This article applied ANP approach by classifying it into three aspects, namely problem, solution, and strategy. Problem and solution aspects consist of four clusters including internal, customer, competition, as well as regulation. Also, strategy offered is the strategy to improve the quality of service, strategy to develop the relationship and synergy between the authorities and the Islamic Financial Institutions. DOI: 10.15408/aiq.v10i1.533
Dividend Payout Policy of Conventional Banking and Islamic Banking in Pakistan
Get PDFThis paper investigates the difference between the dividend payout policy of Islamic banks and conventional banks in Pakistan for a period from 2012 to 2016 analyzing the data through regression using Least Square Method (OLS). Specifically, the study aims to study the impact of the profitability, liquidity, revenue growth and financial leverage on the dividend payout policy of the Islamic Banks and conventional banks of Pakistan and how Islamic banks dividend policy differs from conventional banks. This study concludes that the factors like liquidity and financial leverage should be considered and addressed accordingly, because these are key indicators to help policymakers and investors in assessing the performance of the Islamic Banking Industry. DOI: 10.15408/aiq.v10i1.610
Asymmetric Information and Non-Performing Financing: Study in The Indonesian Islamic Banking Industry
Get PDFThe purposes of this study are: First, to analyze the indications of moral hazard and adverse selection on Indonesian Islamic commercial banks. Second, to analyze the influence of moral hazard and adverse selection on the Non Performance Financing of Indonesian Islamic banks. Two methods were used for this purpose, a qualitative content analysis approach derived from the results of interviews with the banker from the Islamic commercial banks. Besides that this study also uses Error Correction Model (ECM), with data taken from these listed Islamic banking from 2010 to June 2016. The results show that the indications of moral hazard have a positive effect on the non-performing financing (NPF) in the short run. The indication of the presence of moral hazard occurs at the long run on GDP variable, and the allocation of Murabaha financing (RM) has a positive effect on the mudharabah (FM) profit and loss sharing. The test results also show that adverse selection that represented by the profit sharing rate (PSR) has a positive effect on the level of risk sharing toward non-performing financing (NPF) in the long run.DOI: 10.15408/aiq.v10i2.739
Stability Measurement of Dual Banking System in Indonesia: Markov Switching Approach
Get PDFVarious macro and microeconomic shocks that occur during this time suggest the potential for financial instability. This study attempts to analyze the influence of macro and microeconomic variables of the dual banking stability in Indonesia and compares the stability level of both banking system by using two similar stability measurement models namely the Z-score and Banking Stability Index. The method used in this is a Markov Switching VAR. The results of this study described through two analyze: First, the calculation index of financial stability with Z-score and BSI. Second, results of Markov-Switching prove that the sharia banking system has a higher level of stability compared to the conventional banking system. It means sharia banking is more stable than conventional ones.DOI: 10.15408/aiq.v10i1.5867
Financial Stability of Islamic versus Conventional Banks in Pakistan
Get PDFThis study aims to analyze and compare the financial stability of Pakistani banks covering a timeframe of 5 years from 2012 to 2016. This study employs the financial soundness indicators of the International Monetary Funds and State Bank of Pakistan and the z-score index. The comparative analysis through average scores is performed using 3 indicators of financial stability namely Z-Score, Capital Adequacy Ratio (CAR) and Equity to Total Assets Ratio. The findings of the research reveal that (i) conventional banks are more financially stable than Islamic banks; (ii) large conventional banks are more financially stable than large Islamic banks; (iii) small Islamic banks are less stable than small conventional bank. The implication of this paper is that conventional banks have the potential of absorbing financial stability shock as compare to Islamic banks on the basis of stated financial soundness indicators and Z-Score specifically.DOI: 10.15408/aiq.v10i2.650
Strategy of BAZNAS and Laku Pandai For Collecting and Distributing Zakah in Indonesia
Get PDFAs an important and potential instrument for national development, Zakah will continue to require development innovations. One of the innovation is through cooperation between BAZNAS and Laku Pandai which aims to achieve Zakah inclusion so that the collection and distribution of Zakah in Indonesia can increase. This cooperation is still relatively young so the implementation still needs to identify the problem and strategy. This study aims to analyze the strategic priorities for BAZNAS in running cooperation with Laku Pandai. This study used SWOT-ANP method with respondents as many as five expert respondents. The strategies derived from this research are the result of the formulation of a combination of SWOT factors. The main findings of this study indicate that the main priority of the overall strategy is strengthening the synergy of BAZNAS with the Laku Pandai of sharia banking. The results of this study can be a reference for BAZNAS and Laku Pandai in formulating implementation strategies for this cooperation.DOI: 10.15408/aiq.v10i2.694
Islamic Bank Service Quality and Its Impact on Indonesian Customers’ Satisfaction and Loyalty
Get PDFIslamic bank provides products that conform to sharia. When world financial crisis happened, it did not constrain Islamic banking due to its interest free system. However, in Indonesia, the growth of Islamic bank assets is still in the tenth rank with less than five percent of market share. Customers are still in doubt of its professionalism. Superiority in products and service quality remains in sufficient for customer satisfaction and loyalty. The data sets in this research were analyzed by using path analysis for testing the direct impact and sobel test for indirect impact. The result shows that Islamic bank service quality in Indonesia impacts customer satisfaction and loyalty. However, customer satisfaction does not impact customer loyalty, both directly and indirectly. It means that customers are still dissatisfied with the services provided by Islamic banks. This research recommends strategies for improving service quality and consumer confidence on the distinction of Islamic banking system.DOI: 10.15408/aiq.v10i2.713
Who Co-Moves The Islamic Stock Market of Indonesia -The US, The UK, or Japan?
No full textThis paper explores the dominance of world Islamic stock markets of Japan, the UK, and the US over the Islamic stock market of Indonesia. Daily Islamic stock indices of the UK, the US, Japan and Indonesia over the period 2000 to 2016 are utilized in the study. Both bivariate and multivariate Granger causalities based on Vector Error Correction Model (VECM) framework are adopted to empirically identify the co-movements among these Islamic stock markets. The study found that the Islamic stock markets of Indonesia, the UK, Japan, and the US are moving towards a greater level of integration. The Japanese Islamic stock market dominantly co-moved the Indonesian Islamic stocks, as compared to the UK and the US Islamic stock markets both in the bivariate and multivariate frameworks. This further implies that any developments in the Japanese financial market have to be given more consideration by the Indonesian authority in designing policy to stabilize and promote its Islamic stock market.DOI: 10.15408/aiq.v10i2.728
Shariah Governance Practices at Islamic Banks in Bahrain From Islamic Bankers’ Perspective
No full textThis study aims to evaluate the Islamic banks\u27 commitment towards Sharia Governance in Bahrain. This study utilizes both quantitative and qualitative research methods. The survey results reveal that Islamic banks in Bahrain practice 7 out of 9 questions in the questionnaire, which are related to Sharia governance aspects as per the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)\u27s governance standards. The interview results also reveal that the Islamic banks are practicing most aspects of Sharia governance. The results of this paper can be an input for the regulator and the banks\u27 management to make decisions to improve Sharia governance practice among Islamic banks in Bahrain.DOI: 10.15408/aiq.v10i1.599