Journal of Finance and Islamic Banking

The Impact of Covid-19 Pandemic on the Financial Performance of Islamic Bank in the Philippines

Najeeb Razul Sali — 2024-05-17

This paper investigated the impact of the Covid-19 Pandemic on the performance of Islamic banks in the Philippines. It used the quarterly data before and during the pandemic. To empirically measure its impact on the Islamic bank in the country, this study used significant different tests to ascertain differences in the financial performance of the bank starting from the 1st quarter to the 4th quarter of 2019 used as a proxy for pre-pandemic variable and the 1st to 4th quarter of 2020 which was during the heights of the pandemic as data that represents the duration of the crisis. The result shows that the overall bank size during the pandemic was reduced by 2.08% while changes in return on deposits and return on equity before and during the pandemic were not statistically significant. However, there was enough evidence to show that Islamic deposits, return on assets, and net income, were significantly positively affected by the Covid-19 Pandemic. Test for significant difference further ascertained that the decrease in capital adequacy ratio during the pandemic was found statistically significant. It suggested that Islamic banking in the Philippines fared differently compared to its conventional counterparts in the country.

Affecting Financial Inclusion Toward Third Deposit Funds of Islamic Banking Indonesia

Muhammad Khozin Ahyar — 2024-05-17

This study aims to analyze the effect of financial inclusion variables on Islamic banking third deposit funds. In general, the variables used in this study consisted of financial inclusion variables and non- financial inclusion variables. Proxies of financial inclusion variables consist of office networks, ATM networks and savings customers. Non- financial inclusion variable proxies consist of third deposit funds, interest rates, profitability, yield equivalent and size of sharia banking. This research is a type of quantitative research using the Vector Error Correction Model (VECM) using the Eviews analysis tool. Based on the results of data analysis, the proxy for financial inclusion variables that affect Islamic banking deposits is the office network (KTR) and the ATM network (ATM), while the proxy variable that has no effect is the deposit customer (NSB). Non- financial inclusion variables that affect Islamic banking deposits are the equivalent yield (ER) and the size of Islamic banking (SZE), while variables that do not affect Islamic banking deposits are the benchmark interest rate (BIR) and profitability (PRO).

Keywords: Financial Inclusion, Third Deposit Funds, Islamic Banking

Should Sharia Banks Go Public: Analysis Using The RGEC Method

Rustam Hanafi — 2024-05-17

Recently, the OJK has encouraged Shariah banks to go public to obtain new funding sources for business expansion, increasing corporate value and image. In fact, are Sharia Banks that go public better than non-go public. Therefore, this study aims to test whether the health of Sharia Banks that go public is better than non-go public. Observation data used 122 Sharia Banks during the 2014-2022 period. Using an independent sample t-test and RGEC health indicators, we find that Sharia Banks that go public have better health than non-go public but are not significantly different. These results also indicate why Sharia Banks go public are not as many as Conventional Banks. Sharia Banks adhere to the principle of prudence, including going public. If going public does not significantly change the health and performance of a Shariah Bank, the initiative to go public needs to be careful because ownership will transfer to shareholders. It will be a problem if shareholders do not understand Sharia principles.

Initiating a Sharia Audit Model for Zakat Management Organizations In Indonesia

Deni Riani — 2024-05-17

The proliferation of zakat management organizations in Indonesia is part of the zakat problem in Indonesia. The zakat management organization as an intermediary organization between muzaki and mustahiq must have a management basis that is trustworthy, professional, transparent and accountable. The presence of Law Number 23 of 2011 and Government Regulation Number 14 of 2014 provides a legal basis for sharia audits to be carried out as a guarantee of security and comfort for muzakki in paying zakat through BAZNAS and LAZ. The main objective of the shariah audit is to provide certainty of compliance with sharia rules both in terms of collection, distribution and utilization of zakat. This study describes the basic concepts in carrying out sharia audits of zakat management organizations, where there are several main things that must be carried out in carrying out sharia audits of zakat management organizations based on existing laws and general provisions in conducting audits in general as part of the guidelines that must be adhered to. . With the sharia audit carried out, it will increase public confidence in paying zakat through zakat institutions. The sharia audit framework for zakat management organizations includes the planning, implementation and reporting stages and the last is in the form of an opinion on the audit implementation in the form of a statement that is appropriate or not appropriate and then recommendations for improvement on the implementation of the audit.

Determinants of Switching Intention: Empirical Evidence from Sharia Bank Mergers in Indonesia

Rina Sari Qurniawati — 2024-05-17

This study examines the factors that affect customers switching intention after threeÂ state-owned IndonesianÂ banks merge. The risk of losing customers in mergers and acquisitions (M&A) is very high because during the integration phase, management often focuses on internal issues, leaving aside important customer-related tasks. Therefore, a deeper understanding of the concept of M&A in the disciplines of marketing and consumer behavior is clearly needed for the benefit of academic knowledge and marketing practice. A total of one hundred and fifty respondents are selected using the quantitative method as sources of data collection. The questionnaires are distributed using a purposive sampling method in Surakarta, Indonesia. The software used for analysis is SEM-PLS. The results of this study state that inconvenience and religious motivation influence customer switching intentions. However, attitude and availability of suitable banks as a moderating variable did not influence customer switching intentions.