A strategy for strengthening public perception toward sharia banking
- Author(s)
-
DOIhttp://dx.doi.org/10.21511/bbs.16(2).2021.16
-
Article InfoVolume 16 2021 , Issue #2, pp. 170-181
- Cited by
- 915 Views
-
372 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The number of Muslims in Indonesia reaches 85% of the total population of 270 million, but the progress of the Islamic economics in the country is stagnant. This is evidenced by the sharia banking assets, which only reach 5% and never increase every year. Therefore, it is necessary to investigate the primary obstacles hindering the development of sharia banking, from the perspective of sharia banking per se, and not from the society, as was the case in most previous studies. Besides, this study offers a strategy through a combination of Ibn Khaldun’s ashabiyyah and social construction theory of Peter L. Berger and Thomas Luckmann to strengthen the public perception toward sharia banking. The method used to reveal the obstacles is a field survey method in the form of an obstacle’s questionnaire with optional answers, which were distributed to several Islamic banks as samples, and then the most selected answers are calculated. Meanwhile, to find a strategic solution, it is necessary to review the literature using a philosophical approach. The results of a questionnaire that was distributed to several Islamic banks indicate three primary obstacles: low level of public awareness about the use of sharia banking (80 %), low level of public understanding and knowledge on sharia banking products (60 %), and low level of government support for sharia banking (40 %). Meanwhile, the theoretical application of asabiyyah theory with the help of the social construction theory can be used to strengthen public perceptions of Islamic banking through a three-stage process: externalization, objectivation and internalization.
- Keywords
-
JEL Classification (Paper profile tab)E71, Z12, Z13, Z18
-
References31
-
Tables1
-
Figures0
-
- Table 1. Obstacles facing Malang city sharia banking
-
- Abbas, K., & Shirazi, N. (2015). The key players’ perception on the role of Islamic microfinance in poverty alleviation: The case of Pakistan. Journal of Islamic Accounting and Business Research, 6(2), 244-267.
- Arfan, A. (2017). 99 Kaidah Fiqh Muamalah Kulliyah: Tipologi dan Penerapannya dalam Ekonomi Islam dan Perbankan Syariah. Malang: UIN Maliki Press.
- Arfan, A., Saifullah, S., & Fakhruddin, F. (2016). Implementasi Prinsip Bagi Hasil dan Manajemen Risiko dalam Produk-Produk Pembiayaan Perbankan Syariah di Kota Malang. Inferensi Jurnal Penelitian Sosial Keagamaan, 10(1), 213-238.
- Berger, P. L., & Luckmann, T. (1966). The Social Construction of Reality: A Treatise in Sociology of Knowledge. Penguin Books Ltd, England.
- Charag, A. H., Fazili, A. I., & Bashir, I. (2020). Determinants of consumer’s readiness to adopt Islamic banking in Kashmir. Journal of Islamic Marketing, 11(5), 1125-1154.
- Damon, S., & Bayat, A. (2018). The ethico-political promotion of Islamic banking: The role of knowledge practices. Proceedings of the 15th International Conference on Intellectual Capital, Knowledge Management and Organizational Learning (ICICKM 2018) (pp. 59-66).
- Esposito, J. L. (Ed.). (2001). Ensiklopedi Dunia Islam Modern, Vol. 1. Bandung: Mizan.
- Ezeh, P. C., & Nkamnebe, A. D. (2019a). Islamic bank selection criteria in Nigeria: a model development. Journal of Islamic Marketing, 11(6), 1837-1849.
- Ezeh, P. C., & Nkamnebe, A. D. (2019b). The prospects of Islamic banking in Southeast of Nigeria. Journal of Islamic Marketing, 11(1), 251-267.
- Huda, Nur. (2008). Pemikiran Ibn Khaldun tentang Ashobiyah. SUHUF, 20(1), 41-52.
- Jinjiri Ringim, K. (2014). Perception of Nigerian Muslim account holders in conventional banks toward Islamic banking products. International Journal of Islamic and Middle Eastern Finance and Management, 7(3), 288-305.
- Khaldun, Ibn. (2000). Muqaddimah. Trans. Ahmadie Thoha. Jakarta: Pustaka Firdaus.
- Masvood, Y. (2019). A critical evaluation of articles related to Islamic banking. International Journal of Recent Technology and Engineering, 8(2s4), 302-306.
- Moleong, L. J. (2001). Metodologi Penelitian Kualitatif (Monograf). Bandung: PT Remaja Rosdakarya.
- Mu’allim, A. (2003). Persepsi Masyarakat terhadap Lembaga Keuangan Syariah. Al-Mawarid, 10(2), 17-31.
- Mukri, S. G. (2014). Langkah Strategis Optimalisasi Sistem Ekonomi Syariah. SALAM: Jurnal Sosial Budaya Syar-i (SJSBS), 1(1), 7-18.
- Musa, H., Natorin, V., Musova, Z., & Durana, P. (2020). Comparison of the efficiency measurement of the conventional and Islamic banks. Oeconomia Copernicana, 11(1), 29-58.
- Pitoko, R. A. (2018). Bappenas: Perkembangan Ekonomi Syariah Jalan di Tempat. Kompas.
- Purwanto, P. A., Sulistiyono, A., & Muryanto, Y. T. (2020). Barrier factors for development of sharia banks in Indonesia (Comparative study of sharia banking in Malaysia). International Journal of Advanced Science and Technology, 29(3), 3471-3485.
- Rizvi, S. A. R., Narayan, P. K., Sakti, A., & Syarifuddin, F. (2020). Role of Islamic banks in Indonesian banking industry: an empirical exploration. Pacific Basin Finance Journal, 62, 101117.
- Sahrodi, J. (2008). Metodologi Studi Islam: Menelusuri Jejak Historis Kajian Islam ala Sarjana Orientalis. Bandung: Pustaka Setia.
- Sholihah, I. (2015). Analisis Faktor-Faktor yang Mempengaruhi Persepsi Masyarakat tentang Perbankan Syariah di Kecamatan Selong Kabupaten Lombok Timur. Educatio, 10(1), 69-83.
- Siddique, M. Z. (2020). Modern money and Islamic banking in the light of Islamic law of riba. International Journal of Finance and Economics.
- Smolo, E., Šeho, M., & Kabir Hassan, M. (2020). Development of islamic finance in Bosnia and Herzegovina. Journal of Economic Cooperation and Development, 41(1), 121-144.
- Suzuki, Y., Uddin, S. M. S., & Islam, A. K. M. R. (2020). Incentives for conventional banks for the conversion into Islamic banks: evidence from Bangladesh. Journal of Islamic Accounting and Business Research, 11(2), 273-287.
- Syam, Nur. (2005). Islam Pesisir. Yogyakarta: LKIS.
- Wikipedia. (2019). Daftar Negara Menurut Jumlah penduduk.
- Yuningsih, A. (2006). Implementasi Teori Konstruksi Sosial dalam Penelitian Public Relations. Mediator, 7(1), 59-70.
- Yuspin, W., Absori, & Nurwanti, Y. D. (2020). Islamic banking structure post spin-off policy: Indonesian perspective. International Journal of Innovation, Creativity and Change, 12(2), 374-391.
- Zainuddin, A. R. (1992). Kekuasaan dan Negara: Pemikiran Politik Ibnu Khaldun. Jakarta: Gramedia Pustaka Utama.
- Zamroni. (1992). Pengantar Pengembangan Teori Sosial, Yogyakarta: Tiara Wacana.
-
Corporate governance and financial performance in Islamic banks: the role of the sharia supervisory board in multiple-layer management
Banks and Bank Systems Volume 14, 2019 Issue #4 pp. 183-191 Views: 2199 Downloads: 388 TO CITE АНОТАЦІЯThis study aims to investigate the impact of Good Corporate Governance (GCG) on the financial performance of sharia banking. GCG is measured by the Board of Commissioners Performance, the Board of Commissioners Composition, the Number of Audit Committees, the Board of Directors, and the Sharia Supervisory Board Performance, whereas financial performance is proxied by Return on Assets, financing risk (Non-Performing Financing), and capital (Capital Adequacy Ratio). Sharia commercial banks registered by Bank Indonesia made the sample of this study. Annual reports and GCG reports of sharia commercial banks from 2014 to 2017 are used as a data source. The study uses a panel data regression approach to analyze the data; some interesting results have been obtained. The Sharia board positively affected financial performance of Islamic banks in terms of return on assets and capital adequacy ratio, and negatively as to non-performing financing. Similarly, the board of directors had a significant impact on the financial performance of Islamic banks in the same direction as the sharia supervisory board in terms of the three components. Meanwhile, the board of commissioners had a significant and positive impact only on the return on assets of Islamic banks in Indonesia.
-
Leveraged buyout booms and busts: can Islamic finance help prevent and mitigate such market distortions?
Mouad El Haloui
,
Rajae Aboulaich
doi: http://dx.doi.org/10.21511/imfi.16(1).2019.24
Investment Management and Financial Innovations Volume 16, 2019 Issue #1 pp. 299-318 Views: 1567 Downloads: 398 TO CITE АНОТАЦІЯThe industry of private equity and leveraged buyout has been, since its beginnings, subject to several chapters of bubbles and busts, the majority of whom are initiated under similar circumstances (excess of liquidity, junk debt and mimetic behavior).
The Islamic finance is a financial system that complies with the rules of the Sharia Law, and which naturally allows the achievements of purposes of Sharia, such as protection of property and capital, fair wealth distribution, reduction of uncertainty and speculation, to name a few.
From this perspective, this paper discusses the capacity of Islamic finance to help prevent some factors that trigger financial crises in the leveraged buyout market and to accomplish the intended purposes through this asset class.
In the first part of this paper, the authors try to break down some of these common factors that trigger or catalyze the economic booms of the leverage buyout industry, and propose a framework to visualize their effects through an agent-based Simulation program. The second part of the paper describes how Islamic economic principles constitute brakes to some distortions and excesses in the market, in such a way that the probability of occurrence of a boom decreases drastically. Finally, these Islamic features are added up to the simulation to provide a comprehensive benchmark.
