16 research outputs found
The determinants of non-financing income: An analysis on Islamic banks in Malaysia
No full textThis study analyzes the determinants of non-financing income among the 10 selected Islamic banks in Malaysia. A comprehensive analysis of the 10 Islamic banks in Malaysia has been conducted over the period 2012 up to 2018. The main objective of this study is to examine the relationship between non-financing income for Islamic banks in Malaysia with determinants factors such as the size of the bank, core deposits from customers, return on asset and provision of loan losses. This study has adopted a few types of analysis methods including descriptive analysis, pearson correlation analysis and multiple regression analysis to examine the relationship among all of the variables. Based on the findings of this study, all of the independent variables (the size of the bank, core deposits from customers, return on asset and provision of loan losses) are significant in determining the non-financing income for Islamic banks in Malaysia. The findings also imply a consistency to previous studies from different background of bank’s type and period covered. Now, non-financing income becomes a vital element in increasing and boosting banks’ revenues
Influencing factors of intention to participate in family Takaful products among academicians in private Islamic universities
No full textThe development of the takaful industry in Malaysia was inspired by the prevailing needs of the Muslim society for a Shariah-compliant product. The market penetration rate for conventional life insurance and family takaful products for 2022 was 54 and 20.1 percent, respectively. It indicates that much of the Malaysian population is still uninsured/protected. Thus, this study incorporates the Theory of Planned Behaviour with other supporting behavioural-based theories, such as the Brand Association, Unified Theory of Acceptance and Use of Technology and Initial Trust Formation Model, in assessing the customers’ intention to participate in the products. These theories highlighted crucial predictors for behavioural studies, including the influence of attitude, subjective norms, perceived behavioural control, halal brand association, facilitating condition and moderating effect of institutional trust on the behavioural intention. A questionnaire was conducted on academicians in seven Malaysian private Islamic universities. The data were analyzed using Covariance-Based Structural Equation Modelling (CB-SEM) and Statistical Package for the Social Sciences (AMOS). The result unveiled that attitude, subjective norms, and perceived behavioural control are positive and significantly influence the customers’ intention to participate in the family takaful products. Meanwhile, the two variables, halal brand association and facilitating conditions, indicated unsupported insignificant evidence. Moreover, institutional trust has significantly moderated the relationship between attitude, subjective norms, and perceived behavioural control on behavioural intention, but not halal brand association and facilitating conditions. This study highlights the crucial importance of these factors, adding to the existing knowledge and literature. Takaful operators must utilize these findings to enhance their operations and effectively re-strategize their marketing of the products to the public
Developing the crypto-waqf model: a perspective for entrepreneurs’ sustainability
No full textWaqf is a unique Islamic philanthropic instrument for social development, revealed to Prophet Muhammad
PBUH 1400 years ago. Properly managed waqf property and funds can boost economic growth, stabilize the
economy, and alleviate poverty by financing entrepreneurs and small to medium-scale enterprises. On the
other hand, integrating financial matters and technology has enhanced and increased productivity. As such,
integrating waqf and cryptocurrency would provide new Islamic social finance instruments and benefit society
in general and specifically for entrepreneurs’ sustainability. Therefore, this paper proposes a practical model
for crypto-waqf with its modus operandi. This study employed extensive qualitative research methods through
semi-structured expert interviews to achieve the intended research objective. The proposed model of cryptowaqf is presented in the study’s findings. This study implies that it benefited waqf institutions such as MAINs
in adopting the crypto-waqf model for their services
A systematic literature review on the determinants of Islamic financial literacy among individuals
No full textFinancially literate young individuals make informed decisions, built financially resilient households and engage responsibly with financial service providers. Despite its importance, Islamic financial literacy among Malaysians remains underdeveloped in Malaysia, as highlighted by Bank Negara Malaysia’s 2018 survey. Although many studies explore the determinants of Islamic financial literacy, systematic reviews on this topic remain limited, restricting comprehensive understanding and comparability. This study conducts a systematic literature review on the determinants of Islamic financial literacy, following a rigorous five-step methodology: formulating research questions, conducting systematic searches in primary databases, eligibility screening, quality assessment, and data analysis. The review identifies five main themes—psychological and personal factors, religious and cultural factors, educational factors, financial behaviour and attitudes, and financial knowledge and awareness—along with 12 sub-themes. The findings emphasize the pivotal role of financial education in enhancing Islamic financial literacy, which is essential for improving financial well-being and fostering economic resilience in Muslim communities
TAKAFUL BUSINESS MODEL AND BUSINESS PERFORMANCE: A COMPARATIVE EVIDENCE FROM THE GLOBAL TAKAFUL INDUSTRY
No full textAs a means for takaful operators to survive and sustain their business within the industry, they must appropriately choose takaful business models for their products. Different types of takaful business models will determine the different types of income for the business. Thus, this study aims to identify the most competitive takaful business model that relies on the takaful operators’ business performance. This study employed qualitative and quantitative methods on eight selected global takaful operators. The qualitativemethod is employed through content analysis to identify the application of the Shariah contract and the respective standards. Meanwhile, the quantitative method analyzes each takaful operator’s business performance (profit-after-tax and the return on assets). The finding indicates that three out of eight operators adopted the wakalah-mudarabah model, two operators with the wakalah model, two with the wakalah-waqf model, and one with the wakalah-qard model. The finding also highlights that Syarikat TakafulMalaysia Keluarga Bhd recorded the highest profit-after-tax average and the average of return on assets using a wakalah-qard model. This study betrays an exigent insight into the effect of takaful business model selection on business performance. As a practical implication to the takaful operators, they need to restrategize their business model to boost revenue through an appropriate model. This study also provides a breakthrough to the body of knowledge. This paper bids its originality by narrowing down the segment ofthe takaful industry and focusing only on the family takaful segment
Theorizing the Halal Brand Association toward the Participation in Family Takaful Product: An Extended Theory of Planned Behaviour
No full textThis study examines the pivotal role of halal brand association (HBA) in influencing consumer participation in family takaful products through the Theory of Planned Behaviour (TPB). The research conceptualizes HBA as a critical variable impacting key TPB predictors—attitude, subjective norms, and perceived behavioral control—leading to increased participation in family takaful products. A qualitative approach systematically reviewed literature from reputable academic databases to develop a theoretical framework. The findings reveal that HBA enhances consumer attitudes, aligns with social expectations, and strengthens perceived behavioral control. Academically, this study contributes to the limited research on HBA in the takaful industry, providing new insights into consumer behavior in Islamic finance. Practically, it offers strategic guidance for Islamic financial institutions to leverage halal branding as a competitive advantage. By aligning financial products with Islamic ethical principles, this research underscores the dual importance of religious compliance and social responsibility in fostering consumer engagement and loyalty
Takaful Business Model and Business Performance: A Comparative Evidence from the Global Takaful Industry
No full textAs a means for takaful operators to survive and sustain their business within the industry, they must appropriately choose takaful business models for their products. Different types of takaful business models will determine the different types of income for the business. Thus, this study aims to identify the most competitive takaful business model that relies on the takaful operators’ business performance. This study employed qualitative and quantitative methods on eight selected global takaful operators. The qualitative
method is employed through content analysis to identify the application of the Shariah contract and the respective standards. Meanwhile, the quantitative method analyzes each takaful operator’s business performance (profit-after-tax and the return on assets). The finding indicates that three out of eight operators
adopted the wakalah-mudarabah model, two operators with the wakalah model, two with the wakalah�waqf model, and one with the wakalah-qard model. The finding also highlights that Syarikat Takaful Malaysia Keluarga Bhd recorded the highest profit-after-tax average and the average of return on assets using a wakalah-qard model. This study betrays an exigent insight into the effect of takaful business model selection on business performance. As a practical implication to the takaful operators, they need to re�strategize their business model to boost revenue through an appropriate model. This study also provides a breakthrough to the body of knowledge. This paper bids its originality by narrowing down the segment of the takaful industry and focusing only on the family takaful segmen
Goal vs. gold? Unveiling the business performance of Malaysian family takaful operators
No full textThis paper aims to assess the business performance of family takaful operators in Malaysia. The study examines the impacts of the operator’s specifics and economic predictors on the relationship with the operator’s performance captured by Return on Asset (ROA). The operator’s specifics include fee and commission income, zakat payments, underwriting risk, liquidity, and firm size, while the economic predictors include Gross Domestic Products (GDP) and inflation rate. Using four regression estimations, which are the Ordinary Least Squares (OLS) model, the Robust OLS model, the Cluster Robust OLS model and the Feasible Generalised Least Squares (GLS) model, this study employed a balanced panel data approach to nine Malaysian family takaful operators for ten years, 2013-2022. The findings for the four estimation models affirmed that fee and commission income, underwriting risk, and liquidity significantly impact the ROA but not firm size and GDP. The findings also exhibit a significant relationship between zakat payment and the inflation rate on ROA in the different estimation models. Several works of literature are very interested in Malaysian takaful business performance without specifying the scope of family takaful business. Thus, this study aims to unveil the performance of family takaful businesses on Malaysian family takaful operators. This paper brought its novelty by conceptualising the fee and commission income and zakat payment as new proxies for measuring performance. The study’s implications admonish the family takaful operators’ recommendation to increase the operators’ performanc
