A comparison between Malaysia and Indonesia in Islamic banking industry

Abdullah, Atikullah

doi:10.17261/pressacademia.2017.705

Cited by 18 publications

(13 citation statements)

References 1 publication

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“…Indonesia, as one of the countries with the largest Muslim population in the world, when hearing the word sharia economy seems to have become an important issue for this country (Abdullah, 2017). With the largest Muslim community globally, it should have a sharia capital market that can flourish.…”

Section: Literature Reviewmentioning

confidence: 99%

The Stability of the Indonesian Sharia Stock Index to Economic Shocks

Mubarok¹,

Arif²,

Mufraini³

2020

IQTISHADIA

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<p>The stock market has a strategic role in the development of a country's economy in the era of globalization, including the Islamic stock market. The rapid growth of the Islamic stock market, especially in developing countries, is a historical record in Indonesia's financial sector. This study aims to analyze the factors that influence the return of the Indonesian Sharia Stock Index (ISSI) in the short and long term, how long shocks occur, and how much the contribution of these factors. This study uses monthly time series data from January 2012 to December 2019 using the Vector Error Correction Model (VECM) method. VECM estimation results show the price of gold has a significant effect on the short and long term, while inflation has an impact on a long time. ISSI's return quickly reaches stability when it receives a shock from the exchange rate. The price of gold dominates the diversity of ISSI's performances. Stakeholders should consider several things that affect the ISSI return, pay attention to the economic climate, and anticipate quickly the shock that occurs.</p>

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Section: Literature Reviewmentioning

confidence: 99%

The Stability of the Indonesian Sharia Stock Index to Economic Shocks

Mubarok¹,

Arif²,

Mufraini³

2020

IQTISHADIA

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“…It has become the savings, investment, and financing alternative for Muslims and non-Muslims. The market share is a vital factor describing the banking's performance from the competitive aspect (Abdullah, 2017). It could be influenced by certain factors, such as variables of total of offices, customers, and promotion.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Determinant of Market Share in the Indonesian Islamic Banking Industry

Hanafi

2021

muqtasid

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Market share determines the position of revenue and public utilization of Sharia bank. This research aims to examine the internal and external determinant factors of Indonesia Sharia banking market share. The secondary data were obtained from the Financial Services Authority (OJK) and Bank Indonesia (BI). Autoregressive Distributive Lag (ARDL) was used to explore the short and long periods from the inﬂuence of variables, including total of oﬃces, customers, third-party saving (DPK), and promotion. The results showed that the total number of Automated Teller Machines (ATM) had a contrastingly diﬀerent impact. Therefore, this research recommends adding all variables quantitatively.

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“…Amongst them are al-Salus ), al-Suweilam (2004), al-Sabhani (2005, Ahmad (2002), Hassan (2003), al-Darir (2004 and Ali (1425H). In terms of institutions, they include Majma' Fiqh al-Islami (IIFA, 2009), AAOIFI (2015), the Saudi Fatwa Council (1425H), the Fatwa Council of Jordan ( 2012), the Islamic Fiqh Council of Sudan ( 2017) and the Indonesian Ulama Council (DSN-MUI) (Abdullah, 2017). Besides, according to al-Suweilam (2013), his analysis has included salaf (the first three generations of Muslims) scholars who forbade the tawarruq munazzam transactions; Sa'id al-Musayyib (w.94H), al-Hasan bin Yassar al-Basri (w.110H), Malik bin Anas (w.179H), Muhammad bin al-Hasan Ibn Qayyim (w.189H).…”

Section: Literature Reviewmentioning

confidence: 99%

The difference of Shariah risk potential and Shariah risk in personal financing products based on tawarruq munazzam contracts practised in Malaysia

Asni

2021

QRFM

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Purpose This paper aims to investigate the differences in the practice of tawarruq munazzam contracts based on personal financing products. The researcher will then analyse the said differences based on the potential for risk to occur and risk from a Shariah perspective. Design/methodology/approach This study’s methodology is qualitative, in which the data are collected through library research and field studies. The library research is conducted by examining books, articles, statutes and related circulars. From the practical aspect, field studies were conducted in an unstructured interview method with officers used in Islamic banks. The snowball method was used to determine the number of Islamic banks to be studied until no new information was obtained on the different practices of tawarruq munazzam contracts based on personal financing products. Findings The results show that there are differences in the practice of tawarruq munazzam contracts based on personal financing products practised by the Islamic banks studied. These differences have brought significant influence in determining the level of Shariah risk potentials and Shariah risks, respectively. The results also show that the highest number of the Shariah risk potential and Shariah risk in the Islamic financial institutions (IFIs) studied is 10 i.e. covering the issues of customer engagement, wa’ad (promise), commodity asset, gharar (uncertainty), wakalah (representative), ta’wid and gharamah, the willing but not an able debtor, qalb dayn and two prices in a transaction. Meanwhile, the least amount of the Shariah risk potential and Shariah risk in the IFIs studied is four, i.e. covering the issues of customer engagement, wakalah, the willing but not an able debtor and two prices in a transaction. Findings prove that there are opportunities for IFIs to minimise Shariah risk potential and risk in the personal financing products offered. Research limitations/implications This study is limited to the practice of tawarruq munazzam contracts based on personal financing products practised by IFIs in Malaysia. Practical implications The differences in the tawarruq munazzam contract practice show the distinctive elements in both Shariah risk potential and Shariah risk. Therefore, the findings of this study can be a guideline for IFIs to improve the practice of tawarruq munazzam contracts, especially in personal financing products in minimising Shariah risk potential and Shariah risk. Social implications The public confidence in Islamic banking is increasing as Islamic banks can minimise the Shariah risk potential and Shariah risk in tawarruq munazzam contracts based on the personal financing products offered. Originality/value This study analyses the differences in the practice of tawarruq munazzam contracts based on personal financing products by IFIs in Malaysia, which can impact Shariah risk potential and Shariah risk.

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A comparison between Malaysia and Indonesia in Islamic banking industry

Cited by 18 publications

References 1 publication

The Stability of the Indonesian Sharia Stock Index to Economic Shocks

The Stability of the Indonesian Sharia Stock Index to Economic Shocks

Determinant of Market Share in the Indonesian Islamic Banking Industry

The difference of Shariah risk potential and Shariah risk in personal financing products based on tawarruq munazzam contracts practised in Malaysia

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